Why, How And When To Buy Gold
Why, How And When To Buy Gold
Summary
- Why, how, and when: three important questions to ask when buying gold.
- An investor needs to have the right attitude towards gold.
- Treat gold differently from stocks and bonds.
Most investors do not have the right perspective about gold. Gold can play a valuable role in your financial well being. Let us answer the first question: Why?
It is a fairly easy question, but the answers can be profound. Gold is one asset that the Central Banks cannot control. The Central Banks can inflate the currency, stocks and bonds, but not the gold. In this modern era when Central Banks are unloading their Gold positions, it may look pointless to own gold. Gold has withstood the test of time. The Egyptian Pharaohs are gone, but the gold they used still exists and is worth something. Gold is a proxy for labor, energy and capital that goes into prospecting, extracting and refining gold. As gold is only found in harder to reach areas, the labor, energy and capital needed today are much more than what was needed years back.