Sell gold? I wouldn’t if I were you.
I know, with prices falling this much it’s easy to lose one’s nerve and decide to sell some or all of your gold.
Well, I have a couple of opinions on that.
First, if you own gold as a safety net, as a hedge against hard times, you should only think about selling if you are in very dire financial need.
Think of your gold holdings as being like your retirement investments. Do you sell those when the stock market takes a dip? No. You keep them pretty much through thick and thin, because you know you’ll need that money when you retire.
It’s the same with owning gold. You buy it and hold it, right up the moment when you truly and desperately need the cash.
Second, although gold prices have been falling this month, there are no fundamental changes to the world’s economies that suggest anything other than a recovery of gold prices this year.
Most central banks are predicting a significant increase in gold prices by the end of the year.
In other words, hang tight.
If you bought gold at the height of the market, and are now feeling foolish…don’t. The price will almost certainly recover, and then some.
Owning gold is all about keeping your eye on the end game.
We are long-term investors, not traders.
We are looking for long-term security, not short-term profits.
Right now, with prices lower than last month, you should be buying gold, not selling it.