Why Gold, Anyway?
February 4, 2009 by Bob Livingston
The simple answer is that the world order of paper currencies is coming to an end. People will not financially survive without exchanging their paper money for real money while there is some time left. This is not a new revelation. All fiat paper money systems in history have collapsed, and people who had no financial assets except fiat paper were left impoverished. Our present day fiat financial system is no different.
Many millions of intelligent people (by world standards), who have accumulated vast financial paper wealth, will finally lose it all. They are, in reality, no better off than the homeless or impoverished street people who live frivolous lives.
The fact is that most people just plain trust the system, and until they become alerted, they continue to make the wrong long-term choices or no choices at all.
Life is a crap shoot for most people, but I believe that those who have the mental capacity to think opposite of the crowd have an edge or advantage. Contrary opinion usually produces gains in the market and in life. But it is very difficult for most people to accomplish this. The reason is that our emotions get in the way.
So here is the key: When we feel emotionally negative about a stock, about gold or about life, this is a signal to reverse. And it is difficult. I have accumulated gold and silver since the last bull market blow off in 1980. All through the bad years, I knew gold would begin a bull market eventually.
The trigger signal to buy was the day that precious metals “‘experts” came out with very negative statements about the future of gold. What made the contrary opinion convincing is that these experts were hard money people. They were supposed to be hard core. When I read these reports, I began to buy gold and gold stocks the very next day. My contrary decision was on target.
I don’t ask you to be a market expert, but I do ask you to trust our judgment and that is, stay with the uptrend until it reverses at the top. Stay tuned and we will keep you informed. This correction will pass and the metals will blast off into the wild blue yonder. Stay aboard! By the time you read this, gold may be strongly up.