Is investing in hard asset stocks the same as investing in commodities?

To properly view this site, javascript must be enabled and Flash version 9 or higher must be installed.
Get the latest Flash player
  • How to Save Money

    In this video, financial planning professional and member of the Financial Planning Association®, Tracey Baker, CFP® describes the four important steps to saving money.

  • How to Save Money

    In this video, AAA’s director of Financial Services, Bill Gerhard, talks about reasons to save money, setting goals, money saving options appropriate to each goal , and where to look for the best rates.

  • Types of Money Savings Options

    In this video, AAA’s director of Financial Services, Bill Gerhard, talks about reasons to save money, setting goals, money saving options appropriate to each goal , and where to look for the best rates.

  • Reasons to Save Money

    In this video, AAA’s director of Financial Services, Bill Gerhard, talks about reasons to save money, setting goals, money saving options appropriate to each goal , and where to look for the best rates.

  • Why is it important to teach my kids about money?

    In this video, Deputy Editor of Kiplinger's Personal Finance and author Janet Bodnar answers questions on the many issues surrounding what kids should know about money.

  • How to Teach Your Kids About Money

    In this video, Deputy Editor of Kiplinger's Personal Finance and author Janet Bodnar answers questions on the many issues surrounding what kids should know about money.

  • How should parents introduce money to preschoolers?

    In this video, parenting educator Dr.

  • When should parents introduce the concept of money?

    In this video, parenting educator Dr.

  • Saving Money - Planning for Lower Fixed Costs

    In this video, financial planning professional and member of the Financial Planning Association®, Tracey Baker, CFP® describes the four important steps to saving money.

  • Saving Money - Reducing Variable Spending

    In this video, financial planning professional and member of the Financial Planning Association®, Tracey Baker, CFP® describes the four important steps to saving money.

David John Marotta
President, Marotta Wealth Management, Inc., Marotta Wealth Management, Inc.
http://www.emarotta.com  
434-244-0000

David John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com

Is investing in hard asset stocks the same as investing in commodities?

 

This expert: 224,499 views

This series: 10,280 views

Print

Transcripts

Speaker:Is investing in hard-assets stock the same as investing in commodities?

David Marotta:You need to keep in mind that investing in hard-asset stocks is not the same thing as investing in commodities. Commodities are things like gold, silver, oil; it even includes things like soybean, contracts and things like that. But investing in a commodity like gold will generally hold its value but it wont appreciate the value. When you invest in a gold mining company, they actually have profits, returns, they are expanding their business. Studies have shown that investing in stocks appreciates at about 6.

5% over inflation. Investing in commodities ends up appreciating just with inflation. So, over the last 200 years, stocks have been appreciating about 6.

5% of inflation. But a dollars worth of gold 200 years ago, after in just adjusting for inflation is worth about $1.

7 today. Now, a dollar 200 years ago is worth about $0.

7 today because of inflation. So, a dollar isnt worth as much but a dollars worth of gold back then is equivalent to a dollars worth of gold today. So, gold and commodities hold their value but hard-asset stocks actually appreciate value.

Other Videos

  • How to Save Money In this video, AAA’s director of Financial Services, Bill Gerhard, talks about reasons to save money, setting goals, money saving options appropriate to each goal , and where to look for the best rates. This video is an introduction to creating a personal savings strategy, and includes information on ways to diversify savings. AAA offers financial services to members and is the largest consumer organization in North America.
  • What types of mortgages are available? In this video, mortgage advisor, Jeff Thomas describes how to purchase your first home and the process you must go through to obtain a mortgage. This video is designed for first time homebuyers and also provides valuable information to indivduals who have purchased a home in the past. This video includes an overview of the four parts of a loan file, mortgage jargon, the loan process, house hunting, the types of mortgages available and the 7 steps on how to manage your mortgage correctly.
  • In addition to finances, what issues are important for retirement planning?
  • Why are interest rates so important? In this video, Vikki Frank, Kandance Beamon, and Linda Stroman, financial education providers describe several key areas to address regarding debt reduction and elimination. This video is designed to deliver basic financial information to assist individuals and families to be able to identify goals and process strategies for their specific financial needs. The topics included in this video cover are: self-evaluation of debt load, budgeting strategies, understanding the effects on your credit and scores, why savings is important, how to develop a debt elimination plan, and the importance of financial education and how financial counseling may be useful.
  • What can I do to protect myself from identity theft? In this video, Linda Sherry details the best ways to prevent identity theft and what you can do if you think your identity has been stolen.
  • How to Teach Your Kids About Money In this video, Deputy Editor of Kiplinger's Personal Finance and author Janet Bodnar answers questions on the many issues surrounding what kids should know about money.