A possible loss from converting one’s money into one asset or into several assets. Such a risk of loss (risk of losing) always exists, with every kind of investment; it is to be attributed to the circumstance that one transfers in principle by the activity of the investment existing means of payment from the own possession into the power of disposal of contracting parties. – Obviously, however, there are many different degrees of risk of loss, depending primarily on which contracting party (unknown provider on the Internet on the one hand, trusted bank on the other) and which investment object (i.e. precious metal such as gold, or securities issued by a special purpose entity) one chooses. – A risk-free investment does not exist, despite repeated assertions to the contrary, even in relevant textbooks and in bogus technical papers! Also who invests his money in gold bars, must count on the fact that the private gold possession is forbidden by the authorities, as for example in the USA between 1933 and 1976. Many times and very vividly history teaches that in this case dear fellow men, not least also gossipy family members (talkactive, garrulous family members) and jealous friends (jealous friends), will quickly see to it that – the hidden gold hoard is confiscated by officials of the state, – the gold hoarder is severely punished and socially ostracized as well as – the whistleblower is royally rewarded. – It should not be forgotten that hoarding cash at home (mattress money) also involves the risk of loss. The purchasing power of the cash hoard is reduced by the rate of inflation. – See investment model, investment courage, diversification, risk, risk investor, risk taker, risk capacity, Velleïtät, polygon, magic.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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