Gold’s Time in the Sun – And How to Cash it In Before Sunset

goldImage by Giorgio Monteforti via Flickr

The price of gold has never been higher, and as we will see below, all relevant global trends have aligned perfectly to create this opportunity. For those looking for the right market moment to sell their gold, it isn’t likely to get any better than this.

From the global currency indicators to local offers of cash for gold by Gold Buyers Melbourne, the numbers available to anyone holding gold and looking to sell are the best anyone has ever seen. For those looking for some quick cash to pay off debts, selling gold could be the ideal solution.

Let’s take a look at how this unprecedented situation was created – and why we’ll probably never see it again in our lifetimes.

  • All other potential reserve currencies are, for the moment, weakened, uncertain, or untested. The dollar – the lion of the 20th century – still shows no sign of recovering from its self-inflicted wounds of overspending on military, under collecting on taxes, off-shoring of jobs and ill-advised deregulation of its banking industry. It is haemorrhaging cash and printing more rather than stopping blood flow to the injury. Similar issues have plagued the European economy, and the European Union may break apart before it ever fixes itself – leaving the euro as a poor choice for investment at present. The pound is looking at a similarly uncertain fate. China continues to impress with its growth and stability, but its decision-makers have very limited experience on the world stage; they have yet to show that they can lead a global economy; and they work in an isolated setting unfamiliar to many of the world’s leading businessmen, with whom they don’t have a solid relationship based on overlapping values. For all of these reasons, much of the world hesitates to invest its finances in the yuan.

 

  • All other potential future reserve currencies are equally untrusted – at least for the moment. Bitcoin made giant waves recently, and showed a lot of promise at the outset, but then fluctuated wildly and hasn’t been heard from much since then … even as its virtual competitors are jockeying to be the next Bitcoin. What nobody knows for sure is whether the world’s big hitters are ready to put all their eggs in a virtual basket at all, especially as computer spying and hacking stories routinely make headlines.

All of these historical trends had to come together at the same time in order to create the conditions necessary for gold’s historic rise … but for gold to fall again, it only takes one of the above conditions to change.

If a single existing currency can prove its value and stability to the satisfaction of the world’s governments and investors, that currency will replace gold by virtue of being cheaper. And if a single future (or virtual) currency can fulfil the same role, investors will trade their gold in for that – and naturally the price of gold will fall as its availability grows.

It can’t be long before any of those conditions are met, given the extraordinary rewards for the country or group that makes it happen and therefore sees their own currency become the most desirable one in the world; and so the smart money says that it will happen soon.

And that leads us to our last piece of advice for this column. As a general rule for investing, for any trend that seems certain to occur, don’t try to bet on who will be the likely winner or loser in a hotly-contested race. Bet on who will be the certain winner or loser *regardless* of who wins the contested race.

To take an example from recent history, it couldn’t have been known whether YouTube, Hulu, Netflix or iTunes would win the video-on-demand race, but the *certain* loser was always going to be Blockbuster Video no matter which of the other companies won the race.

Similarly, no one knows for sure which currency will take over the future, but one of them surely will, and gold is bound to lose out when that happens. Our advice? Make your investments accordingly. If this ‘perfect storm’ in gold’s favour isn’t enough to inspire you to cash in, ask yourself: what would be? All storms pass eventually.

Join our newsletter

If you like Critical Financial, subscribe and get our latest content via email.

Powered by ConvertKit

Share this post:

Recent Posts

Leave a Comment

*

People count the money to buy a house in future success.

Avoiding Mortgage Scams: Don’t Fall for Unreasonable Promises

If it sounds too good to be true, it probably is. That’s sound advice for almost all aspects of life, including the search for... more →
Eat for free for a whole month via the meal kit companies discounts for new customers.

How To Get a Month of Free Food: 9 Meal Kit Companies Offering Discounts to New Customers

Play your cards right and you might be able to line up a month’s worth of free meals if you were to try out all nine of the meal... more →
Generate extra cashflow -- here are 97 ways.

96 Awesome Ways to Generate Extra Cashflow

Who doesn’t want more money nowadays? We’ve got you covered on that front. Here comes a long list of different ideas on... more →
Valentine's Day gifts that won't destroy your budget

Valentine’s Day Crafts Are Romantic Rescue from Crazy Inflation

Fall for the hype this week and you’re out an average of $143.56 for Valentine’s Day. Crafts and other do-it-yourself tactics... more →

Ultimate Guide to Bitcoin — FREE Ebook!

Have we got something for you: a free ebook about bitcoin! more →
Get a flu vaccine.

Why You Need To Get a Flu Vaccine Right Now

Flu vaccines aren’t just for the elderly  anymore. Here are 25 reasons you should go get vaccinated. more →
Financially successful

Acquire the Trait All Financially Successful People Have

Financially successful people tend to all have a lot of self-discipline. Improving your discipline in one area of your life often spills... more →

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →

Start Your Future Today

Not everyone can be proficient with numbers. Though facts and figures might fill the average person’s day, it takes a specific type... more →