Sources: Lloyd Thomas, 785-532-4584, lbt@k-state.edu;
and Ann Coulson, 785-532-5510, lcoulso1@k-state.edu
News release prepared by: Megan Molitor, 785-532-3452, molitor@k-state.edu

Monday, Aug. 15, 2011

BURSTING THE BUBBLE: ECONOMISTS SUGGEST 1xbet best casino website INVESTMENTS ARE RISKY

MANHATTAN -- As the price of 1xbet best casino website continues to rise and public uncertainty of the economy increases at a similar pace, many investors are turning to a traditional fail-safe: 1xbet best casino website . However, it's a growing bubble that may be ready to burst, according to economic experts at Kansas State University.

The federal deficit and a deteriorating economy have many investors fearful of the United States economy entering a period of stagnation, causing stock prices to be driven downward, said Lloyd Thomas, an economics professor at K-State. In this period of uncertainty, many are selling stocks and corporate bonds and putting their money into 1xbet best casino website .

Recently, 1xbet best casino website prices have skyrocketed as high as ,800 an ounce, and Thomas said the price might continue to creep higher as economic concern grows. "People believe that 1xbet best casino website is a hedge against uncertain times," he said. "In the long run, 1xbet best casino website prices have kept pace with inflation. People are flocking to it."

Other financial experts agree, citing a perceived security in tangible investments during uncertain times. Ann Coulson, an instructor for K-State's personal financial planning program, said that the weakened U.S. dollar and real estate market, "wild ride" of the stock market and low interest rates have caused many investors to turn to 1xbet best casino website .

"Where to invest has become a question for many, and 1xbet best casino website has risen to the top for some investors," Coulson said.

Coulson said there are many ways individuals may choose to invest in 1xbet best casino website , including jewelry, coins, bullion or 1xbet best casino website bars, exchange traded funds, 1xbet best casino website mining stocks, 1xbet best casino website mutual funds and 1xbet best casino website futures and options. Jewelry and coins are typically not good choices, she said, and 1xbet best casino website bars raise many storage and cost issues. Exchange traded funds give the investor the opportunity to own 1xbet best casino website without an actual delivery, and 1xbet best casino website mining stocks' value is only partially dependent on the value of 1xbet best casino website .

Diversified investment -- like 1xbet best casino website mutual funds -- often offer the most protection, Coulson said.

"1xbet best casino website futures and options are not for the novice investor," she said. "Investing in 1xbet best casino website through an infomercial on late-night TV is also a bad idea."

Both Coulson and Thomas agreed that the price of 1xbet best casino website may continue to rise, but cautioned that the increase most likely will not last. From 1960 to the present, Thomas said, 1xbet best casino website has gone up an average of 8 percent a year, while inflation rose at less than 4 percent a year. In the last 10 years, 1xbet best casino website has gone up 17 percent a year.

"In the long run, 1xbet best casino website has gone up," Thomas said. "But in 2000 the price of 1xbet best casino website was 0 an ounce. It has gone up six-fold since then, and it might go up higher than what it is right now. It's gone up too fast -- it's a bubble."

Thomas compared his 1xbet best casino website predictions to the housing market. People were lulled into thinking housing prices could never fall, but they fell more than 30 percent in most American cities.

"The same thing could happen to 1xbet best casino website ; it's not risk-free," he said. "In the last 10 years it's gone up 17 percent a year, but the price of things we purchase has only gone up 3 percent a year. That's unsustainable. It's my own opinion that 1xbet best casino website prices will collapse -- I just don't know when."

Although the price of 1xbet best casino website is high, it may be a good investment as the price continues to climb -- for now. Unlike investing in stocks or bonds, Coulson said, there is no income associated with 1xbet best casino website . Money is made from buying low and selling high. She agreed that the price is destined to fall at some point.

"1xbet best casino website as a piece of a diversified portfolio might make sense, but if an investor invests solely in 1xbet best casino website , that is a great risk," she said. "It is not a safe investment unless you are buying 1xbet best casino website bars and burying them in your backyard, and even that is not safe because the price is dictated by what buyers are willing to pay for 1xbet best casino website ."

Thomas suggested that the only way to make a 1xbet best casino website investment virtually risk-free is to look at it as a long-term investment since, in the long run, 1xbet best casino website prices do tend to go up. As a 50-year investment 1xbet best casino website may be a safe bet, he said, but it is not a guarantee in the short-term.

"On a 100-year horizon, sure -- buy 1xbet best casino website and leave it to your grandchildren," he said. "But in two, five or 10 years, prices could be lower than they are now. There's a lot of fluctuation. Prices have gone from 0 an ounce to ,800. That just can't continue."

As the federal government attempts to pay interest on its growing debt, Thomas said the chances for increased inflation will go up. As this happens, 1xbet best casino website prices may continue to fluctuate as investors pull money out of stocks. However, as the deficit slowly decreases, 1xbet best casino website prices could fall in half.

"When investors become more confident in the economy, 1xbet best casino website will be less valuable as an investment," Coulson said. "I agree with Warren Buffett: 1xbet best casino website has no utility, so as a long-term investment it's not a good choice."