Why should you buy gold?
Well, let’s talk about situations where you SHOULD NOT BUY GOLD:
– If you believe that the financial policies that have been in place are helping the economy, don’t worry about gold.
– If you feel that the economy is moving in the right direction, don’t buy gold.
– If you feel that the stability of the economy is sound and unquestionable, don’t buy gold.
– If you feel that the guys driving the ship have everything under control and you’re in good hands, don’t buy gold.
But if you have even the slightest doubt about the health of the economy, you should consider adding gold to your portfolio.
The policies of zero interest rates (ZIRP) that are currently enacted and could be left in place for perpetuity are part of the reason that I buy gold for myself. We are in an anemic recovery, yet we continue to maintain policies that were enacted when we were in the midst of a crisis. Why would you continue to soak your house with water when the fire is out? Shouldn’t we move on to plan “B”? It’s time to shift gears…
We’ve been giving away money, essentially squandering very important capital in places that offer very little return. Here are examples of areas where capital is squandered.
– Consumer debt is NOT a great place to use capital. Credit cards use has returned to an all time high and represents the worst of what America does in terms of financial transactions – consumption. We need those credit dollars to be used in different forms in different transactions.
– Indiscriminate student loans are not a good use of capital. Sadly, not everyone should be in school. Some folks, unfortunately need to be behind the wheel of a front end loader, not using Microsoft Excel to create more spreadsheets.
-If dollars currently used for consumer credit were redirected at infrastructure projects, the Wendy’s worker who can’t make a living wage because he’s paid a pittance to super size meals would instead be learning how to grade a road, or survey or se a variety of tools.
– Automotive loans are not a good use of credit (capital). Automobiles are the largest depreciating asset class in our economy and they form the single largest expenditure that lower income earners ever make. Why should we encourage lower income earners to throw their money toward a depreciating asset, when they, more than anyone else, need to build savings and accumulate wealth.
These examples are draining the life form our economy. And they are why you should be investing in gold. There are simply not enough dollars to pursue all of these bad ideas while we try to limp forward and figure out good ones.
In the meantime, the price of gold continues to rise and your investments that are dollar-based continue to decline in real value.
You can buy gold at Houston Gold Merchants in Houston.
