Gold – To Sell or Buy – That is the Question

HomeStake 1899-1985

QUESTION: I own physical gold and silver do I sell hold or just give it away?

ANSWER: It depends on what proportion you have invested in physical metal. This is the problem of the promoters. They only say buy with no regard as for the threshold of an individual’s pain. It is like terrorism. The leaders tell the zealots to die for the cause and they will get a herd of virgins in heaven. They themselves would never do that – but they just tell others to do what they themselves would never do.

If it is a 100%, that is not good. The world will not end tomorrow. We are not getting off that easy. You should be diversified into equity. Keep in mind that the rally in the gold stocks during the late 1930s was caused by the DOLLAR DEVALUATION – making $20.67 worth of gold then $35. Keep in mind that IF the promoters were right and gold went to $50,000, the government would seize the mines like they did with the railroads and you will lose in gold stocks not gain. Do not put any more money into the metals if you have nothing else.

If you are a small percentage 25% or less, then you may look to buy the dip. Ideally 2013 should produce the low. It is possible that the intraday low could extend into early 2014, but by the end of that year gold will have recovered.

Selling physical positions rather than leveraged positions is entirely different. Futures you have to be a trader. Physical, unless you can show a tax loss, it doesn’t pay to buy and sell as long as it is not everything in one basket.

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