A Golden Mistake Worth Repeating – Casey Research

By Jeff Clark, Casey Research

The following conversation took place between a friend’s son and me; he’s a bright but relatively young investor. He had purchased some gold based on some things I’d told his father. Shortly afterward, the price dropped hard. As you’ll see, he was not very happy with my advice and said so in an email to me. So I called him…

I: Sounds like you’re upset.

Friend: Yeah, that’s putting it mildly. What the hell am I supposed to do now?

I: Because the gold price has dropped?

Friend: Yes! It’s down 15% in a month! I thought you said this was going to be a good investment.

I: It is. And it will be. You might even consider buying more here if you have the funds.

Friend: I have some other money, but why would I put it in gold? It’s losing money.

I: Because it’s on sale. Because it’s cheaper now than when you bought it. And especially because none of the reasons for buying it have gone away.

Friend: That doesn’t mean it’s going to go back up.

I: As I told your dad, there are no guarantees, but I think it will have to go higher. Either way, it will hold its purchasing power over time. We’re holding it as an alternate currency, a more sound form of money that can’t be debased.

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via A Golden Mistake Worth Repeating – Casey Research.

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