I'm not a financial advisor, but many of you have asked me about whether or not I recommend investing in gold, and if so, who I'd suggest buying from. Here's my take on gold.
Like most of you, the threat of a banking collapse had me scrambling for answers; if the dollar is on its way out then...where should I put my money? All roads led me to the same advice: "Invest in gold!" Made sense - kind of - but one nagging question kept popping up in my mind:
If the dollar is about to become worthless, and gold is the way to go, then...why would anyone sell their priceless gold for worthless dollars...?
Think about it; on a gut level, it just doesn't make sense, does it? I asked a few friends who work in finance but no one's given me a straight answer, which leads me to think that there's only one logical answer that explains this phenomenon: market manipulation.
What is market manipulation?
Market manipulation is when someone (or many) artificially affects the supply or demand for a security.
Threats are market manipulators, as are rumors. It doesn't matter if the threats are real because that's not the point of threats. The point is convincing the public to react to the possibility of a threat on the stock market. This is how gains are made.
Once threats and rumors are amplified and given credence in the media, few people question the likelihood of these events ever taking place.
Distracted by a fear of loss and focused on survival, even fewer of us take a look behind the scenes to notice the spikes in stock prices, clues to what's really driving our news feed.
If you doubt this, think back to what happened on the stock market in 2020. Billions of dollars were transferred during that 'crisis,' and most of us were too scared to notice until it was too late.
Now, I'm not saying that threats to our financial security don't exist; they always do because nothing in this world is guaranteed. What I am saying that not every threat is real, and that most are just tools to move the market, i.e., make money for existing stock holders.
Buy low, sell high.
This basic law of investing will never lead you astray. "Never let a crisis go to waste" sounds heartless, but this mindset is vital to successful investing. Panic causes extreme fluctuations in the market, and because panics are cyclical, the same stocks fare well during a crisis. Invest by follow these simple steps:
Research which stocks repeatedly do best during a crisis.
Buy these stocks when their prices are lowest.
Wait for the next 'crisis' to be promoted on the media.
Cash out when the stock price is highest (this is where good gambling instincts come in handy).
Recover your initial investment and buy more stocks using your gains.
Rinse and repeat.
You may think that this strategy is obvious, but...are you using it?
In conclusion, what do I think about investing in gold? Do it, when the stock prices fall. Until then, consider using current technology to create new income streams; click HERE to learn more.
Another question I've gotten is what I think about investing in the Yuan; in my opinion, there's very little (if any) reason to invest because China is notorious for keeping its currency artificially low because that's how it keeps their exports cheap. So in my opinion, you probably won't see any significant gain in that investment.
For more on money and investing, I recommend the following; feel free to get back to me with any of your favorites!
'The Only Investment Guide You'll Ever Need' by Andrew Tobias
'The Psychology of Money' by Morgan Housel