Is Gold A Good Buy Right Now?
Is gold a good buy right now? Well, it depends on a lot of things. Mainly, it depends on how you see gold. If you see gold as money, as I do, then it is always a good time to buy gold.
If the question is, “Is gold a good investment?” I am going to refer you to your financial advisor team. I used to work as an insurance agent back in the day so to me the issues of investing and saving are different animals.
You have to save before you invest.
So, you with me? Good deal. Moving on.
So, is gold a good buy right now?
Yes. Yes, it is.
Okey doke. My work here is done. (Not really, but it gave me a chuckle to think about it for a second.)
The thing about determining the answer to the question, “Is Gold a Good Buy Right Now?” as I said before, depends on what you are trying to do with it. If you are trying to buy gold, the perception of a good or bad price kind of depends on:
- The time scale you are looking at.
- The various facts you believe to be influencing the price of gold
- The confidence you have in whether or not the ‘facts’ you are looking at are accurate.
Why do I go to such painstaking lengths to explain my thinking? Well, think about it.
The price of gold has reached near historical highs! Horrors.
-Source: Take your pick of screaming talking heads at any of the alphabet soup media.
The price of gold dropped 10% on news that another Hollywood Brainiac stumped their big toe. “The damage to her self-image is simply incalculable!” moaned her/his/take your pic spokesperson.
-Source: Again, take your pick from the galleries over at alphabet soup media.
So, what to do? Is buying gold a good idea? Is it a good time to buy gold? Is gold a good buy right now? It does not matter whether the price goes up or down, the news is bad. Give me dirty laundry and all that.
In answer to the question, “Is buying gold a good idea?” my opinion is to buy what gold you can when you can. You can also do like I do and buy it on a regular basis. Why do I say that?
It is my opinion that it is not that the value of gold which is fluctuating; it is that the value of the dollars or whatever currency you conduct business in is. As I said here, for at least the last two millennia (2,000 years) a person has been able to buy a nice suit of clothes, a pair of shoes and a belt for an ounce of gold. What you are trying to do is accumulate gold and you are as likely to predict the ups and downs of the stock market as you are to do the same with gold.
So, it is my opinion that you move what cash you can into gold such that you are not straining your ability to take care of your other responsibilities. You should be saving 10%. You know this, so I will leave it at that. Some of that 10% should be in gold.
No, I am going to further and recommend, especially for the youngsters amongst us, to go here and read what Porter Stansberry has to say on the issue of savings and investment. He recommends getting to a point where you can live on 75% to 80% of your income. It is advice I wish someone had given me when I was young so you should go read it and think about what he has to say.
To sum up, try to save some every month in gold and don’t worry too much about the price of it. It is going to go up and down, that is its nature. What would it be worth were the dollar to crash or lose its reserve currency status? I have no idea but it is my opinion that it could be the difference between eating or going hungry.
Read, Read, Read
You literally cannot read too much when it comes to your savings. Not to beat a horse to death, but I want to make sure you understand. Savings and investments are not the same thing. It is my personal opinion that the number one reason Americans’ finances are so screwed into the ground is that folks have been sold a litany of lies that make them think that they have all the time in the world. Let’s go over that for a minute.
Before covering the lies we tell ourselves about why we cannot save I would like to make a side trip into an area I want you to think about. I want you to consider dismissing it as irrelevant and simultaneously see it as an advantage. I am not even going to bother with links to it; I am just going to lay it out there quickly. There are folks who think the price of gold is being suppressed in order to bolster the confidence of the people in fiat currencies. Dolefully, woefully and ominously they say that the price of gold is being artificially suppressed in order to let the various governments continue their shenanigans with the currencies.
Well? What of it?
Let’s say for the sake of argument for just a moment that the most sinister imaginings and mutterings to come from these folks is correct. Let’s say the true value of gold is actually something like $43,000 an ounce. (Yes, that is one of the numbers I read. Ridiculous, but then again maybe not.) What, exactly, is the objection to being able to buy gold at a price of $1,195.40 an ounce?
Personally, I wish them very well in their efforts. As long as they are successful in keeping the price of gold down then I can trade dollars for gold on a scale that lets me sleep at night. Let THAT dystopian future take care of itself. Seems to me that my being able to buy gold affordably, without regard to what whoever might be doing to keep it that way, is a good thing.
Okay, I changed my mind. I am going to include one link. Here is a 2011 article on the matter by a source that is a little less wild eyed on the subject than some.
I suspect a lot of Americans have gone through the following step by step approach to winding up at retirement broke as a church mouse and mad at the world because of their poverty. I know. I did it myself but was fortunate enough to do some hard course corrections.
So, here we go:
- I got time. I am young; I have all the time in the world.
- I am in school. Expenses are high, books cost, you know. I will start saving once I graduate and get a job.
- I am a newly wed. We are trying to get a house, buy furniture….
- Now is not a good time. The kids are in school and they need <insert your perfectly socially acceptable reason for not saving right now right here.>
- Our first born is starting college next year. Time’s are tough, I’m not making the overtime I used to make, so…
- Our oldest just got divorced and has moved back in. We are having to help with the grandkids, so…
- I just got fired. Jobs are harder to come by for us 50 somethings.
- It’s too late. I have to start cutting back now so I can live on Social Security.
Now, I know there are all kinds of reasons some of these things may not apply to you. You may be telling yourself all kinds of reasons why these did not, do not or will not apply to you. …and maybe you’re right. No matter what your reasons for not saving nothing can give you the advantage of time and time compounding but time itself. No number of reasons or excuses can replace the power of time, both from the standpoint of interest compounding over time and the power that disciplined accumulation of capital, whether it is in interest bearing savings or savings in gold.
You will either save when you are young or you will retire later, have to take more risks and possibly just simply not make it.
Is buying gold a good idea? As long as governments play dice with the future, enslave future generations borrowing and making them the guarantors without their consent and make promises they cannot keep, gold will be a good way to protect yourself and your loved ones.