Is gold really a safe investment?
Gold which is now an investment and no longer consider money is not a safe invest. There is no such thing as a safe investment. Gold is a very volatile precious metal because as an investment it really doesn’t do anything. It’s what I like to call an anti-growth investment when the markets are slow and people don’t know what to invest in Gold is the best bet, but when things even start to show signs of getting better the prices of gold will drop extremely fast. This is what I personally fear about gold. There’s a lot of it in the world and more is being found day by day if there’s ever a major sell off in Gold the price will drop and I mean drop fast.
Gold prices might hit $2000
At the time I’m writing this it’s August 2011 and the price of gold is setting all time high’s. The reason the price of gold is rising is because people as it stands now don’t have any trust in their governments. The markets are scared and people don’t know what to do. Whenever people don’t know what to do with their money they put it gold. Before the creation of fiat money gold was the world’s reserve currency, so depending on how you look at things most investors feel as though if the markets are scarce gold is their best bet. The problem with this type of thinking is that it takes a sophisticated investor to understand when to pull out of gold, whereas average investors will pull out when it’s too late.
The rules of money have changed
Money is not what it once was, money in this world is considered debt the reason money is considered debt is because when money was an asset and backed by gold it allowed the rich and powerful the ability to control everything including government without any hope of change. In a paper money system this is not supposed to be the case, unfortunately with propaganda people believe what they want to believe which causes the markets to get scared. This whole tea party movement and the idea that America and the rest of the world should return to the old world is causing people not to trust in the governments and their ability to lead.
It’s been a very effective conservative strategy scaring the rich, the poor and the middle class. My hope is that people will become more educated to what’s really going on in the future, the truth of the matter is that we could have been out of this month’s ago. Money now being debt is governed by laws and the laws are simple job creation, the reason why places like Detroit and California are broke is because they have very high taxes on businesses, starting a business is hard enough but having the government breathing down your throat makes it twice as difficult on top of this employers have to worry about unions and increasing minimum wages. It’s these types of laws that are destroying the country.
Final thoughts on Gold being a safe investment
People need to understand that having a job is not a RIGHT it’s a decision a person makes. Entrepreneurs and business people create jobs, these are the people we need to look out for, now I’m not saying allow them to exploit people but give them some wiggle room and then reward them for investing back in America, because when they do more jobs will be created. I say this and bring you back to Gold because this is the only reason Gold prices are rising gold prices rise when people lose faith in their government. The thing to remember about gold however is that interest in it can vanish overnight so keep a watchful eye on growth numbers. It’s only a matter of time before gold as an investment is yesterday’s news.