Gold investing: why it’s an indispensable insurance
Ivestment Watch

At the lowest price in the last 5 year, gold investing hasn’t been successful. Mainstream media says it’s a barbaric relic. The days as a safe haven are gone. But those analysts are missing one important reason to buy gold: it’s not an investment, it’s an indispensable insurance.

2015 was the year of the rate hike, everything else was useless. The first rate hike in 9 years crushed the gold price. Mainstream media believed it would push the gold price under $1.000. Probably the gold price has already priced in an interest rate increase.

After the Paris attacks, the gold market showed a little glance of its ability as a safe haven. It went unnoticed but in the first 10 minutes the market opened on Monday, volume rose 10 times normal activity.

Gold is not an investment, gold mines are

Peter Schiff recently said:

“Gold is like a car insurance. You hope you never need it, but when you get into an accident, you are glad you bought it. When you buy a car insurance the day after you crash your car. Yes, it’s a good idea. But you’re a little late to the party, and it’s going to cost you a whole lot more money.”

The most recent report from the World Gold Council confirms the renewed demand for gold as a safe haven. Demand spiked in the third quarter of this year, primarily driven by investment buying and central banks.

We’re seeing Gresham’s Law play out.

Sir Thomas Gresham, found that: ‘When a government overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation…’

To protect your wealth in a new crisis – which will always come – you need gold as insurance and Investing in gold only works when you buy before the next crisis.

investmentwatchblog.com