Question

Let us say, you have $ 100, 000.00. Would you buy gold with it, or use...

Let us say, you have $ 100, 000.00. Would you buy gold with it, or use it on starting a business? Explain the logic of your decision.

Homework Answers

Answer #1

With $100,000, I would surely start a business. As it's not a small sum of amount, so we can invest it in a very good business with a good return for the rest of our lives. Stating a good business have a good scope of expansion in future which directly means the multiplication of return. A business will help me to earn my bread and butter with many more people whom I have employed. Investing in business will surely give a small amount of return.

Why not Gold ??

1. The rate inflation is not constant. Even the rate is increasing every day, but we cant hope or work personally to earn more profit.

2. We can earn a return on gold, only when we will sell it. It means if we want to earn profit we have to lose what we have.

3. The threat to loose , there is always a risk of the loss of theft.

4. Can’t expect the regular return from gold, which business can.

So, invest your money to start a business, not for looking for a lethargic investment

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