Don’t Sell Gold Stocks Now
March 10, 2014 by Bob Livingston
We appreciate all the great advice over the years, and would hope you could shed some light on the best thing we could do in our situation. We are in our mid/late 40′s, only have small amount of money in retirement invested in gold stocks (no other stocks). I have read stories of significant amounts of gold being withdrawn from COMEX. We know the dollar is going to collapse, and stock market values in general are going down. We figure there is good chance our retirement in gold stocks won’t be there when it is our turn to retire, but when do we take it out? My husband thinks the time would be when the price of physical gold starts going up but I question the value of paper stocks, if inventory is truly low, may not go up alot more, even in fiat dollars. Does it decouple and how does that impact our timing?
Thank you in advance for your advice.
I agree with your having gold stocks. That’s the best leverage you can get. I hope you have the certificates in your possession, not in street name with a broker. At least, you should have them with the transfer agent if you don’t have them in your hand. I believe gold stocks are a great investment, although they have been dogs for a long time. But we are now in a bear market on Wall Street; and we will soon have a blast off in gold, silver and stocks. So sit tight for now.
Certainly, you won’t be selling for a good while after stocks go up and after gold goes up. You will, at that point, be just beginning to get leverage — that is, capital gains. So it will be a good while before thinking about selling gold or gold stocks. We are right now getting into the best time we have ever had.
You didn’t say anything about owning physical gold and silver. It’s very important to have this in your possession, to back you up if things get really bad. You can buy it at lower cost now than for many months, if you can possibly get some.
No, the stocks and gold will not decouple. They will go together. Please don’t sell either now, even if they take off tomorrow. It will be several, several months before starting to take profit.