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Gold priced too high? Don't mistake
selling it for taking a profit...
YES, by all means sell gold today. Just don't be a
schmuck and 'take a profit'.
That's
supposed to be when you exit something volatile and revert to a stable store
of value. But you'd hardly be doing that if you traded your gold for US
Dollars, Euros, Yen or Pounds today.
Sure,
have a great holiday, or a new car. Maybe sell some gold to buy some
interesting shares or, better still, a business. If there's anything you want
to spend on – trivial or serious – sell some gold and do what you
want to; you've earned it. Your gold is buying you about three times what it
would have 5 years ago. You've created the opportunity for yourself, so don't
be too cautious. Use it!
But
don't sell if the most imaginative thing you can think of is to hold currency
– or worse, bonds. Our currencies are not some absolute unchanging
yardstick of wealth. They're junk.
Not
that everyone realizes this yet. Though maybe they're starting to.
Most
people out there are still trying to accumulate money. So trade with them.
Give them what they want for something you want. Buy something – and
let them have your money! There's only a few years left, maybe months, until
the damned stuff becomes truly repulsive; until possession of currency
becomes a headache presenting anyone who has it with the immediate problem of
getting rid of it. Fast.
With
QE3 (yes, it's coming) or any other of the wacky economic plans out there,
our money is shedding purchasing power, month by depressing month. That's the
approved and orderly process, here in the UK for instance, of 5% inflation
and 0.5% interest rates (subject to tax, remember). Central banks and finance
ministries hope you and about a billion other people in the developed West
will quietly tolerate the permanent drip drip drip of lost value from your life savings. They're also
hoping it won't get disorderly.
If
it does, people will be begging you to take their money away. Yes – begging
you. They'll be saying:
"Here,
have the fruits of my lifetime of thrift...My $20,000 for your ounce of gold.
Please – it's a fair price. It's the lump sum value of my pension. I
got it on the day I retired. I paid into the company scheme for 40 years for
this sum, and I'll give it all to you for that 1 ounce of gold. Please!"
Attractive
money? Repulsive money? It's all about whether or not it retains purchasing
power, and it's a very, very big deal that the money squirrelled away for 50
years, and by a billion people, is now transparently unfit for that purpose.
Paul Tustain
Director and Founder
Bullionvault
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