Holding Physical Gold Is About Security, Not Speculation
I’ve looked into buying physical gold and silver recently, and have come to two realizations:
- Finding physical gold and silver is not easy, which shows the demand is high – take that for what it’s worth
- Owning physical gold is about security, not speculating or trading
I’m not going to comment on the first realization even though I think it is an important thing to take notice of. Today, I’m going to focus on why owning gold and silver is for security.
First off, gold and silver prices are very volatile. Trying to speculate where the prices are going is a waste of time. Additionally, speculating about inflation vs. deflation is also a waste of time, because we could have both or one or the other, the result doesn’t concern me. What does concern me is that I am more secure by having some holdings of physical gold and silver.
Now, when I say own physical gold and silver, I’m referring to the physical stuff that you can hold. And I’m talking about having it in your house, hidden, accessible to only you. Safety deposit boxes don’t count. This is the security I’m aiming for.
Think about owning physical gold and silver as just a way to enhance your diversification. If the dollar continues to weaken, which has been the trend, we will be not hurt as badly if we own gold and silver. The reality is that gold and silver will have value today, and hundreds of years from now. I can’t say the same about the U.S. dollar.
My advice is to buy some physical gold and silver, you determine how much, but to definitely buy some and then hang on to it. If prices become more attractive, maybe pick up a little more. Again, just hang on to it. It’s security. It’s insurance. Do not stress over the daily spot price of these metals. Just relax knowing you have a little more security than you did before.