An excellent question, my friend! (We’re off to a great start here, I think!) I believe this is an excellent question because I believe this is an excellent time to buy gold. “Okay,” you reply, “but why should I buy gold now?” Another excellent query – charming person; charming, clever person that you are! You may ask that question because you’ve recently looked at a gold chart or heard some mention of it (probably negative) on some news report or CNBC segment. You’ve heard or you’ve seen from the chart that gold has taken a rather strong and sustained pummeling over the last 24 months or so that saw its value (its paper value, that is – we’ll make a distinction later) drop from $1900 to around $1200. That’s a pretty serious blow, around 35%. Fear not, intrepid investor. Gold is a contender; a heavyweight contender. He’s been knocked around a bit, but he’s been fighting this fight for thousands of years, and you know what? He’s always wins.
Who are these opponents of his that have given him such a beating? Well, here’s where we run into a bit of a debate. Some say it’s our current (but soon to be retired) Fed (Federal Reserve) head, Ben Bernanke, who knows that gold is a rascal, who’s paper price would rocket up to the stratosphere if the real current inflation rate, or unemployment rate were revealed to the public. In other words, there are those who propose that the price of gold is being controlled and manipulated. There are others who claim that gold and its derivatives (gold stocks and gold funds/ETFs) are being significantly depressed in order for large international banks to earn obscene profits by shorting gold (and silver). There are yet others who say this and some more others who say that, and you know what? You and I are never going to know everything that’s being said, and we’re never really going to know the truth about what’s happening on Wall Street or in DC. What we do know is what we see around us. We know what we see on the news (although that can certainly be suspect as well). We see there is unrest in the world, politically and economically. There are bail-outs and bail ins and governments defaulting or about to along with US cities in the same dire straits. Throughout the time of governments and financial systems, the only real currency there has ever been that has survived the test of time is Gold and Silver. Why? Because they are finite. They cannot be created out of thin air. These are real moneys; literally hard currency that the masses have fled to when instability and insecurity abound. We’re not there yet, but I think we’re close. And the fact that gold has been hit hard means that those in power know it too and this has been one of their last, if not the last, desperate attempt at control… whew! (deep breath here)
It’s a Good Time to Buy Gold
So, in answer to your question, “Is this a good time to buy gold?” My reply is an unwavering, unshakable YES.” With that answer in your pocket, here are the next questions you need to ask yourself:
- Where should I buy gold?
- Should I buy gold coins?
- Should I buy gold bars?
- Should I buy gold or silver?
Well, dear friends, we’re going to answer all of those questions and more throughout this series of articles. We’ll also cover the gold price; we’ll look at gold buyers; we’ll discuss when to sell gold when it comes time; we’ll also go over selling gold jewelry and the gold for cash phenomenon.
This price decline has been disconcerting for all but the most die hard and faithful gold investors. One of our great leaders in this conflict has been Jim Sinclair, affectionately referred to as “Santa” in some circles. I highly recommend that as soon as you finish these last few sentences pop on over there for a heavy dose of honesty and sanity. Make sure you come back here and check out the other articles we have for you. Also, if you are at all interested in the poor man’s gold, Silver, pop on over to our other site at To Buy and Sell Silver.
I wholeheartedly welcome you on our journey here. If you have any questions or comments for us, please click on the CONTACT link above.
PS- I want (and need) to point out that all comments in this and any article on the site are merely my opinions and should be construed as such. In other words, I am not telling you what to do, or what you should do. Investing is risky business and losses can occur. Make sure you’re doing plenty of research. J.