Gold News

Is It Time To Sell Gold?

A reply to the question: Is it time to sell gold?

IF WE AT the Daily Reckoning were speculators, we might consider selling gold. But we're not gamblers: we hold gold because it represents real wealth, not because we think the Gold Price will go up, says Bill Bonner of the Daily Reckoning.

We don't really know what direction it is going. But that's why we hold it. We don't know what direction anything is going. The nice thing about gold is that it doesn't matter. Gold doesn't go anywhere. It just sits there.

If you buy a bond, for example, you have to worry about the credit quality of the issuer. If things get bad enough, he won't be able to pay up. Your bond could be worthless.

Same for stocks. A stock is a share of a company. If the company goes out of business, your stock certificates (assuming you have them) are only good for decorations.

Real estate is more reliable. But there are taxes and upkeep to pay.

Gold is a better way to store wealth. You don't pay property taxes on it. And the roof never leaks.

Besides, gold is especially valuable when other forms of money lose their appeal. The trend of debt destruction will probably not end soon. And the feds will probably sooner or later follow Paul Krugman's advice to "raise (the Fed's) long-term inflation target to help convince the private sector that borrowing is a good idea and hoarding cash is a mistake."

In the meantime, the Gold Price may go down in Dollar terms. Which will make a good time to Buy Gold.

Bill Bonner has co-authored a number of New York Times Bestsellers including Financial Reckoning Day, Empire of Debt and Mobs, Markets and Messiahs. In his own opinion, Bill's most recent title, A Modest Theory of Civilization: Win-Win or Lose, is his best work yet. Bill also founded The Agora, a worldwide community for private researchers and publishers, in 1979. Financial analysts within the group have exposed and predicted some of the world's biggest shifts since that time, starting with the fall of the Soviet Union back in the late 1980s, to the collapse of the Dot Com (2000) and then mortgage finance (2008) bubbles, and more recently the election of President Trump.

See full archive of Bill Bonner articles

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

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