Gold: Should I sell or should I hold?

Gold Investment - 28 July 2010

The gold price has pulled back from an all-time high of round about $1266 per fine ounce in June this year to current levels of more or less $1160 per fine ounce. This is no less than a $100 drop in the price of gold within more or less two months and it has triggered speculation regarding to whether one should sell one’s gold at this stage or not.

Buy gold…

Gold Investment is of the opinion that it’s not the time to consider to sell gold, but to rather see any drop in the gold price as an opportunity to acquire gold at even more affordable levels.

Fiat currencies

It doesn’t take someone with a degree in economics to see where the current monetary system backed by fiat currencies are heading. All it takes to understand what’s coming is a little bit of common sense.

The existing monetary system which is backed by fiat currencies, places no restrictions on the amount of debt that can be created since more money in the form of worthless non-redeemable paper notes can be printed to create more debt. This will ultimately lead to hyperinflation and the collapse of the monetary system. It’s like printing and issuing Monopoly notes to transact in the real world. Yes, believe it or not, we’ve fallen for the ‘paper gimmick’, because we attach value to worthless ‘Monopoly notes’ backed by nothing of lasting value such as gold or silver which have stood the test of time. Real bank notes look and feel a bit different than notes used in the popular Monopoly board game, but at the end of the day the value of real bank notes and those used in Monopoly are going to be more or less at par or worthless for that matter. It’s going to be used for wallpaper, toilet paper and anything else except to transact in the real world.

Gold Investment is of the opinion that gold, especially in small standard sizes such as Krugerrands and American Gold Eagles, will be used to barter or to transact when the current monetary system collapses. It’s not a question of ‘if’ but rather ‘when’ the current monetary system is going to collapse. All signs are there that it might happen before 2015 which gives ordinary people little time to acquire enough gold to survive when doom strikes. Like we’ve said before, the idea is not to have all your money in gold, since most of us cannot afford it, but to have at least some of your money in gold. It’s important not to think of gold as being too expensive, because the gold price has certainly not even touch the highs we’re going to see in the coming years.

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