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Is Investing In Gold A Good Idea?

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Man with light bulb on his head when he got an idea.

Is it a good idea or not to buy physical gold? Let’s see what the experts say.

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?

China's gold reserves

Why is China buying so much physical gold? What do they know?

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.

Russia's gold reserves.

Russia is also accumulating enormous amount of physical gold. Why are these big countries buying so much?

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

Peter Schiff

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.

Mark Faber

Marc Faber

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

Carl Icahn

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.

Final Thoughts

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.

My top 3 reasons for why you should invest in physical gold today.

Why Should You Invest In Gold?


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14 Comments

  1. Marcus,
    That’s a great article you wrote.
    I was thinking on investing in gold and your article makes it a lot easier to decide…
    I need approval from my partners, but I think I can convince them now.
    Wish you luck,
    Kit

    • Hi Kit.

      Very good decision to start investing in gold. I think that every healthy portfolio should have at least around 20% of their equity in physical gold. Show your partners what the big countries and investors are saying about gold and I think it will be easier to convince them that it’s the smartest move.

      The demand for physical gold in the world has never been higher then it is right now. The demand for gold is much higher then the actual yearly production. So sooner then later there will be no more gold to buy in the world. Make sure you get yours before that!

      Thanks again,
      Marcus

  2. Marcus,

    I have always wanted to invest in gold once I get my financial portfolio together. Gold doesn’t lose its value, but rather increases in value as the years go by.

    Your article is an extra motivation for me to definitely know that gold investing is the way to go. Economic giants like China and Russia knows exactly what they are doing. These countries are leading right now in my opinion.

    Furthermore, all the investors that you mentioned are brilliant investors who knows when and what to invest in. Why shouldn’t we take their solid advice?

    I am happy that I read this post about Investing In Gold, I am sure that it is the way to go!

    Thanks again.

    Best,
    Jason

    • Hi Jason.

      Yeah China and Russia definitely knows what they are doing. There is actually a lot more countries that are buying as much gold as they possible can. Not just China and Russia. So all of these countries with their smartest investors can’t be wrong.

      When think that every portfolio should have at least 20% of the equity in physical gold. Because it’s like you say, gold doesn’t loose it’s value. It has been money for 5000 years and kept it’s value.

      The same gold that the Egyptians were using 5000 years ago is still with us here today. It hasn’t disappeared and it has kept it’s purchasing power.

      Thanks a lot for reading my article and make sure that you start moving some of your declining paper dollars into hard assets like physical gold. Sooner than later the gold will run out with this current massive demand. Make sure you get some before it’s to late.

      Marcus

      • Thank you for your reply, Marcus.

        I will certainly invest in gold as soon as possible.

        There is one thing that I do not necessarily agree with: that is what you say about gold running out – I truly doubt that.

        The earth is always naturally producing gold, just like how the trees continuously produce fruits. What are your thoughts? I would love to know.

        • That’s great news Jason. Let me know if there is anything that I can help you with when your purchasing gold.

          Well gold is a whole lot different then fruit. The earth is not constantly producing more and more gold in a sense. It takes billions of years for earth to create gold. During the gold rush in the late 1800 we basically discovered almost all surface gold. Right now we are drilling far into the earth to try and find some more gold.

          We have to break up a tremendous amount of ore (we’re talking tons) in order to get any gold. There is no more gold nuggets that you can pick up from a stream like before. That is why right now a lot of mines are actually closing down. The price is to low to make it profitable to mine gold.

          Every year we have a certain amount of gold mined (don’t know the number on top of my head) and the demands for gold each year is almost double the production. So yes, it’s very possible that we will run out of gold for sale. The gold won’t disappear but people will hold on to it and wait for higher prices. And the big time investors and countries will buy up all the gold that gets mined every year.

          Marcus

  3. Deciding what to invest in is a tricky business at the best of times. Thanks Marcus for a thought provoking article.

    • Thanks Andrew.

      Provoking the thoughts are a little bit of my plan :). If you just lay out the facts about gold and the current state of our economy it’s very easy to see that they way we have been thinking about money is not the right way.

      There is NO way that the current economic system can go on for ever. I mean do you think that governments, corporations and banks can just keep getting into more and more debt without there being any consequences?

      I do not believe that for a second and that’s why I’m buying physical gold. It is a bet against the economic debt system. If (when) it falls apart the people that were invested in gold will be the winners, like so many times before in recorded history.

      Marcus

  4. Marcus,
    You certainly make a strong case for buying gold. The countries and experts who are already doing it, so why not follow their lead?
    The charts show that your point is clear to see for anyone who takes a good look at the data!
    Your astute analysis of the investors who advocate buying gold, coupled with their past predictions which turned out to be accurate, make me think that buying and investing in gold is, indeed, a strong idea!
    Thanks for the insight!
    Roger

    • Thanks a lot Roger.
      Yeah your absolutely right. Why not listen to the guys that have been right before? My goal is to keep it as simple as possible with my articles. Investing can be very hard but investing in gold should be very straight forward. You purchase some gold bullion and you put it away and watch it increase in value.

      I think that having your hard earned money in the stock market today is very risky. Mostly because of the probability of a new stock market crash but there is also very little yield to find if you take away the inflation. Why take that big of a risk?

      Marcus

  5. Marcus,
    I enjoyed reading your post about buying up and investing in Gold. I started buying some Silver and Gold a few years back. I purchase mine through a company called Jim Bullion. I was wondering where you purchase your Gold? Can you tell us about some places you would recommend?
    Dale

    • Hi Dale.

      Thanks a lot. I’m currently buying mine through Regal Assets. They are a company that has been around for 25 years and have the highest ratings in the gold industry. I have heard about Jim Bullion before and I’ve heard good things. I will soon come out with an article about where I buy gold and how I do it.

      Add me on Google+ and you will be the first to know when it comes out :).

      Thanks again,
      Marcus

  6. Hello Marcus,
    this is a very good article about gold. I appriciate your work and want to add another hint. Even germany, which has a large amount of gold abroad, ships it is gold back to germany, indeed slowly, but they move it. This seems for me another hint, that they might know something more.

    • Your absolutely right Bernd. It has been a big deal in the newspaper of how Germany wants their gold back from Fort Knox. Many people are speculating in that Fort Knox have slowly been emptied of gold. There is no evidence so we can’t know for sure. But the west have been selling a lot of their gold in the past 30 years to countries like Russia and China.

      One might ask where that gold came from. Certainly Germany is not trusting the United States anymore to protect their gold so they want it back. Did you see the most controversial thing that the US couldn’t just give them their gold back. They are going to get it slowly like you said over the next 10 years or something.

      If Fort Knox is just storing the gold for the countries why can’t they just back up a Hercules transport airplane and take the gold and send it to Germany?

      Thanks for your comment, always adding value!

      Marcus

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