There is a ton of information out there regarding gold. People that are saying that it is the worst thing you can invest in and people that are saying it is the best thing that you can invest in. So who should I believe in?
How can I answer the question: Is investing in gold a good idea without being bias?
The first thing that I do if I want to figure out if something is a good idea or not is to look at the guys that are doing it. For example, lets have a look at who thinks gold is a good investment. Who are these guys and can I trust them?
By answering that question I think it’s very easy to come up with the conclusion that investing in gold is a very good idea. In fact, in my opinion it might be the best idea of them all. Let me tell you why.
Who is investing in gold? And why should I trust them?
Lets first have a look at what countries are buying physical gold. It has been in all the newspapers lately that China and Russia are big big buyers of physical gold. China is buying every single ounce of gold that they can get their hands on.
China is actively buying up gold mines all over the world and they are not selling any of the gold. All the gold from these mines are going straight back to China. They are also taking delivery on a lot of their gold contracts.
Have a look at the chart below which is absolutely astonishing. China has been accumulating a lot of physical gold lately. And there are reports saying that they are buying more gold then what they officially say. What do they know that we don’t?
As you can see every year (although this is just up until 2013) they keep buying more and more physical gold. Are they seeing the threat of a debt crisis and are positioning themselves in physical gold?
No matter what the answer to the question is the facts are still saying that China, which is one of the worlds largest economies, are buying physical gold like it’s going out of style. They buy all the gold they can and they are not selling any of it.
If investing in gold wouldn’t be a good idea do you think that a country like that would put this much money and resources into acquiring gold?
Here is an article from CNN about China being on a massive gold shopping spree
Same goes for Russia. They are also buying a lot of gold and have been buyers for a very long time. There is a lot of other countries in the world that are buying gold like it’s going out of style buy I wanted to shed the light on Russia and China because they are among the worlds biggest economies.
Check out Russia’s gold imports. Same thing here, they are buying as much as they can.
What big investors are buying physical gold today?
It is just not countries that are buying gold like never before. Even big time investors are buying gold all the time. And these guys really know what their talking about. Why not trust the guys that have been so successful before?
Peter Schiff is an American stock broker and author that have been almost creepily right on his economic forecasts over the past two decades. Peter was one of very few people that predicted both the .COM market crash in 2000 and he also predicted the housing bubble crash that happened 2008.
I like to look at guys like Peter where you can go back and look at what he has been saying. And almost all of the things that he has forecasted have become reality. Peter is again warning for another big crisis and his number one choice of investment? You guess it, physical gold.
We’re on a collision course for disaster. All we can do, all your viewers can do is brace yourself for impact by buying gold.
Marc Faber is a legendary investor that has written a lot of books on the subject and are also operating as a fund manager. Marc has been right in almost every single prediction that he has made.
In the early 2000s he correctly predicted the rise in oil prices, commodity prices and emerging markets (especially China) that he made a lot of money for.
Marc has also been very skeptic to our current economic situation and he is predicting a stock market crash soon.
Given all the money printing that is going on globally – and not just in the US – and given that the total credit as a percent of the advanced economies is now 30% higher than in 2007 before the crisis hit, I think that gold is a good insurance.
Carl Icahn is an american business magnate and a very respected investor. Carl has an estimated net worth of 21.3 billion dollars. Carl has for long warned about the coming economic crisis that will happen to the world.
He has a long track record of being right and there is a lot of evidence that he has put forward that makes it look like he’s right again. He is saying that because of the enormous amount of debt in the world we will see a lot of financial problems ahead and he urges everyone to invest some of their portfolio into physical gold.
The best strategy to deal with this is for investors to spread their money widely into different assets, including gold and silver.
As we have seen both big economic countries like China and Russia, as well as a lot of highly respected investors, are saying that investing in gold is a good idea.
I think that the best way to invest in this day and age is to follow the people that have been successful before. There is a reason why these people have been making so much money and I want to know what they are investing in now.
As you have seen they think that gold will be a very good investment for the future. The reason why is because they are all seeing the economic storm that is coming towards us. Our governments and banks are not going to be able to keep this system of debt running for much longer.
The demands for physical gold have never been higher than it is right now. Remember that there is only a limited amount of gold in the world. Do you want to get your hands on some before it is too late?
I sure know that I do. Please leave a comment below if you have any questions or other thoughts about the post.