The Message – Buy Gold or Regret it – Beware the Messenger?

Gold PricesWhenever someone tells you something; whether it be in person or through one of the various forms of media available today, it’s a good idea to think about the motivation of the person delivering the message. I just read an article in that most foolish of websites Motley Fool wherein a fellow named Robert Baillieul tells his readers in no uncertain terms that the value of gold will skyrocket in comings months and they should purchase it now!

I wrote about another fellow named Jim Rogers and his advice about gold back in July of 2013. The article by Rogers describes men like Baillieul exactly. They are mystics who believe the price of gold must go up. This is based on the idea that the price of gold has rise from $35 an ounce in 1971 to it’s current price of $1,310 in the last forty-some years.

I wrote an article on the nature of the Gold Standard, our exit from which freed gold to be traded as a commodity instead of having a set price. This has resulted in a mystical outlook on gold from many people.

I’m not saying that gold won’t rise in the coming months. There are many mystics out there who believe that gold has inherent value, that it is a commodity that can be traded for goods when paper money is eschewed. The reality is that paper money has about an equal inherent value to gold. Gold has some value as medium for artists and some conductive value but it is otherwise equivelant to paper in that it cannot be eaten, burned, drunk, or otherwise used in the manner of water or a chicken.

This is not my point here today. My point is that your money, whatever form it takes, has real value. You want to grow that money so that you can retire securely. So that you can purchase the things you desire. When someone from Motley Fool tells you to sink a lot of money into a commodity like gold that has no dividend you should be wary.  Motley Fools makes a lot of their money through sensationalist headlines that people click. These stories are filled with advertisements that make Motley Fool money. The crazier the headline the more clicks and the more money.

So what should you do? If you like researching and learning about the financial markets I encourage you to spend time and effort learning what are good purchases and what are risky purchases. Just be aware that such a job is what many people do for a living. If you do it as a hobby think about how a hobbyist would do at your job. You studied for years and learned a craft and so does a reputable broker.

It’s your money. Do with it as you will. Just be aware that there are those out there who want to take it from you and they often dazzle with tales of profit taking.

Tom Liberman
Sword and Sorcery Fantasy with a Libertarian Ideology
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