Hopefully, after having read Part 1 and Part 2, you now realize that gold certainly isn’t a hedge against inflation; quite the opposite. Accordingly, a buy-and-hold approach is the worst possible investment strategy for the use of gold; that is, unless you happen to get in at during the early stages of a gold bull market.
Similar to deflationary periods, major crises are short-term events. In contrast, modest inflation is a universal law. Therefore, gold should only be bought during times of crisis (ideally before).
BUT you should NOT hold gold indefinitely.
You need to trade it like major financial institutions do.
Otherwise you could get crushed (depending upon where along the spike you bought it).
Remember, the price of gold is ONLY driven by supply-demand dynamics, which are driven by panic/crises and hype.
And yes, it’s also driven by market manipulation, which serves to alter supply-demand dynamics. But this creates an illusion (i.e. extreme overvaluation) that rarely lasts, and eventually comes crashing down.
The BEST use for gold is to capture price volatility via short-term trading.
Its poorest use is as a long-term hold.
Now that the gold bubble has (likely) been established, you need to be very careful about buying gold here, unless you plan to trade it. Otherwise, you face the risk of being stuck with it when the bubble pops. The previous down cycle in gold lasted some 23 years. And some investors are still waiting to break even (after adjusting for inflation).
So if you want to keep losing money, (which is indirectly transferred to these extremists - the perpetual doomers and gold bugs) by all means, keep on watching TV, keep on reading their articles scattered throughout the Internet.
I truly wish you the best of luck.
Why should you believe me over the guys who make the media headlines? The financial media has fooled many less sophisticated investors into thinking their “experts” know what’s going on, but this just isn’t so. If you don’t realize this, you haven’t examined their track record.
Alternatively, if they do know what’s going in, they certainly haven’t communicated it publicly. You see, these guys go up against media bozos and other sheep.
But when they’re called up against a real expert, they run and hide.
That’s why none of these guys would dare even think to go up against me.
If you’re clueless, the financial media’s designated “experts’ may seem like they’re ahead of the curve, but compared to real experts – the guys you won’t ever see on TV – these extremists actually resemble infomercial salesmen.
Already, we see taking heads who have a lock on the minds of millions of sheep who suck up every word these liars preach. And now they have parlayed their sheepherding success into big endorsement dollars from gold companies.
This is a synergistic relationship, as it bodes well for "Obama bashing" and panic spread by these clowns so as to promote their political agendas, while sending money straight into their pockets and the bank accounts of gold dealers; money that has come from their sheep audience.
The sheep will get burned as they always do. And they will not learn their lesson as they never do. That is what makes them sheep.
I wouldn’t be surprised if Kevin Trudeau’s next book was focused on how to get rich buying gold.
And I’d be surprised if Donald Trump doesn’t have one of his chumps working on a similar book.