Our team at secular investor is convinced traditional investments are losing appeal. There is a process going on that changes the mindset of investors. But this process takes years to evolve. Big investors still think stocks and bonds are safe havens. But that’s no longer the case anymore. Traditional investments are losing faith, this is the era of alternative investments.
Gold is the most known alternative investment, but there are also silver, comic books, paintings, … But for today, we’ll stick to gold. Because it’s time to set things straight, people think gold is an investment – but it’s not. Gold is money. A stock like Apple is an investment, Apple has hard assets, it has cash flow, it makes a profit …
But gold is money, the purest money on the planet. It’s divisible, transportable, durable, it has intrinsic value and it is consistent around the world. Gold is around the world wat it is at home: money, for thousands of years.
Gold cannot be printed, it can’t be created out of thin air. To get some gold, you have to search and dig, you have to do some effort. The sooner you understand gold is money, the more you’ll benefit from its special powers.
Gold is money and an insurance
Because besides money, gold is also an insurance. It’s an insurance for monetary madness, against an insane government. Gold is like a car insurance. You hope you’ll never need it, but when you get into an accident, you’re glad you bought it. When you buy a car insurance the day after you crash your car, it’s still a good idea, but it’s going to cost you a whole lot more.
So, now you know gold is money and gold is an insurance. Now you should understand why gold bugs are happy when the price of gold goes down. Only investors are worried when the price goes down, gold bugs are happy. That’s what happened the last 4 years and now only gold bugs are on the playing field, there aren’t any investors left to sell. They were happy because the price of money and the premium for insurance went down for 4 straight years.
Who wouldn’t be happy when their premium went down? We bet you would.
With the global debt hangover, governments incapable to spend less than they earn and central banks losing control of the system, it’s no surprise the insurance premium is going up. If you want to protect your wealth with an insurance, now is the time.