subject: Make Money With Gold [print this page] This is a matter of timing and now is the time to make money with gold. You should only invest when enough of the essential factors are lined up as they are right now. When not enough of the essential factors are there, gold is a lousy investment, as it was 22 years ago. Now that all the factors are lined up, they will remain that way for years ahead.
In all probability, during the first few years of this golden bull market, you will eventually make money in the metals, no matter when you bought them or how much you paid for them. Any investment in gold at almost any price will eventually pay off. Although the long-term prospects are terrific, the metals can be silent for years at a time like those nearly two decades ago, between the end of the last bull market in 1980 and the beginning of the current one.
After finally giving up on the metals in the 1980's, we have watched gold go sideways and down for many years. As it was not the right time for the metals, we made our money in carefully selected stocks, bonds and real estate for more than two decades while keeping an eye out for today's conditions.
So what conditions are favorable to gold investment?
Money creation, which is monetary inflation, must be in an uptrend. That is the case right now, and has been for years, even during the 22-year metals bear market. So far, so bad, but inflation alone, it is not enough to cause a gold bull market.
The dollar is losing exchange value against foreign currencies. This is so essential that when the dollar entered its last decline, it finally prompted me to turn more bullish as I was doing my investments in gold. Without a weakening dollar on the exchange markets, any moves in the metals will be temporary. Now we not only have that, but we have moved beyond it, into the next currency phase which is: the metals are rising against all currencies, which is immensely bullish. Because gold doesn't lose its value and has proven itself for more then 6000 years now.
War or the prospect of war. The war on terror and the war in Iraq are beginning to meet this condition to quite an extent, although the battles have been contained mostly to the Middle East. War breaking out elsewhere in the world : a terrorist, biological or bacteriological attack, or Iranian fanaticism triggering a nuclear war - would meet this requirement. War is a wild card because it creates inflation due to wartime spending and national and international fear. It is basically unpredictable.
War is an added factor and not a pre-requisite but when it is happening at the same time it can only drive gold prices on a higher scale.
So not all of these conditions have to be met at the same time, but the first two conditions listed are essential.
Fortunately, the timing is right, and even if the bull is not on his four legs, the decision when to invest in the metals is now evident and will be for some years. Just do it, and you'll benefit from gold's safety and security.
by: puregold
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