The Worst Advice About the Best Ways to Invest in Gold is Always Advice to Buy Paper Gold
The worst advice about the best ways to invest in gold, even in almost every top article returned under an internet search about “the best ways to invest in gold” is to buy paper gold for its convenience and ease of trading qualities. If you follow this worst advice about the best ways to invest in gold, you may just be bankrupted by behavior you believed was a great wealth preservation strategy. Understanding the best ways to invest in gold will be necessary to future financial survival because owning physical gold will be the prime determinant between people that survive the coming global financial crisis between 2019 and 2025 and those that do not. Furthermore, it is quite necessary to correct much of the worst advice about the best ways to invest in gold that has been disseminated all over the world wide web, because this poor advice can leave you up you know what creek without a paddle during a time you believed you had extra paddles in your canoe.
In addition, once one understands the numerous mistakes embedded in the worst advice about the best ways to invest in gold, and the reasons why such advice is erroneous, one will also be able to cross numerous authors that write about gold, silver, and precious metals off of one’s “to follow” list. Knowing who to ignore as well is just as important as knowing who to follow when building wise wealth preservation strategies. The danger to one’s financial health of following the guidance of anyone that makes such sophomoric mistakes as suggesting to buy paper gold ETFs like the GLD, when discussing the best ways to invest in gold, is extremely high and also will become self-evident during the apex of the global currency wars.
The majority of articles online that dispense advice regarding the best ways to invest in gold discuss paper assets such as gold futures and gold exchange traded funds like the SPDR Gold Trust (GLD) Exchange Traded Fund as a perfectly viable option to consider. In my opinion, this is horrible advice as paper gold derivative products should never be substituted for the real deal, physical gold, when considering the best ways to invest in gold. Secondly, placing any gold assets under the custody of a broker-dealer, as is the case with all paper gold products, could lead very uncomfortable scenarios in the even another 2008 global financial crisis materializes, which at this point in 2019, is inevitable, and on a much larger scale than 2008. When buying physical gold, the only surefire way to guarantee your ownership is to take delivery of your purchase. Of course, many people do not have the type of home security in which they would feel secure sleeping with a large amount of their savings in the form of gold in their home, so the solution to this problem is to store the gold either with an outside security firm’s storage vaults with adequate insurance (meaning enough insurance to cover large increases in gold price that is likely to materialize in coming years) or with an independent gold bullion dealer outside of the global banking system that has been thoroughly vetted. Consequently, the author of any article that suggests one of the best ways to invest in gold involves buying a paper gold ETF as an equivalent or even better means to “own” gold, should immediately be dismissed as any type of credible gold expert from whom any guidance should be accepted.
A second massive mistake I’ve often encountered in articles that describe the best ways to invest in gold is the consistent use of official government rates of inflation, a ridiculous notion as any person that has ever encountered a period of economic struggle during high inflationary periods when State officials lie about inflation rates and publicly vouch for the existence of low inflation rates, quite clearly understand that their rates of inflation for energy expenditures and food, two of the essential building blocks of human survival, are multiple times higher than “official” inflation rates promoted in that nation. In fact, as I elucidate in my upcoming skwealthacademy online academy launch, one can engage in simple exercises to disprove any nation’s “official” inflation rates as ludicrous, so if an author that is writing articles about “the best ways to invest in gold” does not understand this, such an author is not to be trusted in their advice and guidance.
A third massive mistake often contained in articles about “the best ways to invest in gold” is an incorrect, highly flawed argument of gold’s alleged failure to serve as in inflation hedge. This mistake is often made by authors that confine their world view to the limitations of a small box, the box normally being a perspective of gold priced in US dollars. It is an incredibly foolish view to interpret the function of an international asset priced only in US dollars, especially given the massive efforts over the past decade and more, of heads of State in nations like China, Russia, Brazil, Iran, Pakistan, and Turkey, to “de-dollarize”, or significantly wean their nations’ economies off of US dollar dependence. When confronted with this reality, most people that argue that gold has not served as a decent inflation hedge in US dollars are likely to shrug their shoulders, and say “Who cares? I’m never going to set foot in any of those nations at any point in my life.” Again, the flaws of such a statement are numerous in their self-limiting view of the world, but perhaps the easiest counter argument is to consider that high-ranking cabinet members of typical US allies like Germany and France are among a handful of other nations that have publicly stated that it is time to assert their economic independence from the US dollar in recent years. Finally, even though the US dollar’s dominance as the “de facto” international currency, due to the status of the petrodollar in international trade, is clearly waning, even in nations that still hold large amounts of petrodollars, like Japan and China, its citizens do not use the US dollar in daily life, but still obviously use their national domestic currencies, so the price of gold in these national currencies is important to daily life and not just in cases of hyperinflation, like those exhibited in Zimbabwe and Venezuela in recent historic times. In 2019, gold reached nominal high prices in more than 70 different global currencies, and though most of these new nominal highs were achieved in the domestic currencies of emerging market nations, it is still immensely foolish to ignore these red flags as a clear sign of accelerating cracks in the global Ponzi scheme of unsound fiat currencies and not to take adequate pre-emptive steps to protect one’s financial health right now. Thus, anyone that focuses on the performance of gold’s price as in inflation hedge merely in US dollars, and concludes it is not an inflation hedge, clearly has fallen victim to banker propaganda about the only price metric of gold that is of any importance is its US dollar price and has much too myopic a view of gold to be trusted with providing any robust guidance about the best ways to invest in gold. Or at a minimum, such a person that only discusses gold performance in terms of US dollars and is oblivious to the degree to which gold has served as a robust inflation hedge for others around the world in the last 10 years views the global economy through the nationalistic lens of the United States, even though gold in US dollars is really only important for 329 million people in the world that use US dollars on a daily basis. Such a person that views gold only from the perspective of 4.2% of the world’s population is not qualified to be speaking about gold.
Such a perspective reminds me of the time I spent in early 2016 in Australia and having been there, I was very aware of the falling purchasing power of the US dollar in recent years. Therefore, knowing that gold had risen in terms of Australian dollars in 2015, I was still unsurprised to see headlines in an Australian newspaper declare, “Gold prices fall for third year in a row”, as even in Australia, news editors fell in line to the banking cartel, and refused to tell the truth to their own citizens and framed gold’s price performance not in terms of the most important fiat currency to their own citizens, the Australian dollar, but only in terms of the US dollar. You can easily see below from the two charts that gold prices in US dollars indeed closed lower in 2015 but if memory serves me correct, it closed slightly higher in Australian dollars. In any event, in terms of Australian dollars, gold had clearly risen in 2014, so the headline that gold had fallen in “price” for three straight years was clearly intended to deceive Australian citizens about the value of storing their savings in gold. Perhaps that newspaper editor that printed headlines of gold prices falling for the third year in a row consulted these “gold experts” that told him to discount the reality of gold prices for Australian citizens and only frame gold prices from a perspective non-relevant to Australian citizens that use the Australian dollar on a daily basis.
There are a several additional critical mistakes I’ve observed in the slew of online articles that deal the best ways to invest in gold that will lead investors astray, but I am reserving the discussion of these final points for members of my skwealthacademy. I am readying to launch this academy shortly, so please bookmark this site for updates about the launch date. In addition, sign up for our free newsletter here to receive timely updates about wealth preservation and building wealth. Until then, remain intensely curious, my friends!