Buy Gold: My 'Investment Philosophy'
by Bill White
(there are no affiliate codes in the above links)
First for the disclaimer... I am registered with the Goldsmith's Company Assay Office in London and have a hallmark for "Mayside", which is used for all of the scrap gold my company processes into gold bars, so I am really into gold.
As part of your investment strategy, you should first determine your goal. For example, are you looking for an opportunity for substantial gains? This would automatically involve a greater risk of your capital. Or, are you thinking about long-term growth? Perhaps you're thinking about smaller, regular investments over time that will grow with a reliable and steady, maybe even a predictable pattern. On the other hand, you may feel that you need a hedge against the potential failure of the existing fiat or paper currency systems. I am like most people and want a combination of all of these, but I do have a core philosophy.
But first, a quick word on cryptocurrency as an investment. I own YAFFTR Limited and I am generally supportive of crypto as a speculative investment, subject to your ability to lose that money outright. If you're thinking about buying crypto with money you cannot afford to lose, don't do it.
The problem with crypto as a mainstream investment or replacement currency is that while some cryptos have increased in value, most do not. It's an unregulated market and fraud is rife. The introduction of regulation would remove much of the upside investment potential, so either it remains the Wild West or it will become an impotent cousin to fiat currencies.
My plan for YAFFTR is to remove the fiat currency comparison, making YAFFTR a currency that is not used for speculation; in other words, a self-contained currency used exclusively within a community that is rarely exported. Think about it like this, if the crypto that I bought yesterday will be worth more tomorrow, why would I spend it today? This is why companies and governments want to accept your Bitcoin, etc., but for the life of me, I cannot see why you would want to use it. But I digress.
Fiat paper currencies are all subject to inflation, which devalues their worth. So, if you buy crypto with dollars and hold the coins or tokens for a 20% gross profit when you sell them (to realise the profit) the dollars you receive are worth less than the dollars you used to make the purchase, quite apart from the network, exchange, and bank fees you'll pay, meaning your actual profit is quite a lot less than you might anticipate. And if you hold onto them, you haven't earned a profit, whatever you might think. And at a time when the economies of every country worldwide have been decimated by the reckless actions of those who debased their fiat currencies to finance reckless spending and COVID insanity, precious metals, such as gold, remain the only honest and accountable form of money.
At the present time, I would not recommend listed stocks as an investment. There are always exceptions to any rule, but generally, companies list their shares to raise capital and to incentivise executives. My involvement in shares is limited to short-sells. Frankly, I find it easier and therefore, more profitable, to bet on the losers rather than to pick winners.
And I apply the same philosophy to forex (foreign exchange) trades and usually stick with EUR/GBP, though if you're in the United States you may want to watch EUR/USD. The problem with forex trading today is that all of the fiat currencies are suffering, so it's a choice of picking the worst of the worst.
With all that said, I come back to gold, as my core investment vehicle. I buy gold as a long-term investment and more importantly, as a hedge against the complete failure of the global economy and I tell everyone who listens to do the same. I also tell them to start small; 1 gram each week or month. Even if you can afford more, stay small. You will pay more per gram for 1 gram than 5 or 10 grams, but my philosophy for gold is long-term. I do not sell gold. Think about it like this: if the global economy crashes and you need to go buy food with your gold, do you want to be carrying 1 gram of gold or 10 grams of gold?
My advice for most people is to calculate your 'gross available' investment capital, i.e. income less immovable living expenses. Determine the number of grams of gold you can purchase and take actual delivery of that gold. Store it in a safe place. Do not sell it for any reason. Whatever you have left you can use for speculative investments, but understand that when spending that money, it's very likely gone. If you happened to realise a profit, take that profit and buy gold with it and invest the principal in whatever takes your fancy.
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(there are no affiliate codes in the above links)
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Bill White is CEO of Mayside Partners Limited