What to do when the gold price falls?

Important answers for gold buyers

You bought gold and now the price is going down? Falling prices are by no means a reason to panic. If you consider these 10 questions and answers, you are on the safe side.

1. had I planned to sell my investment gold again in the short term (within one year)?

If their answer is "no", then you have nothing to worry about for now. However, if you do not want to sell investment gold, but gold jewelry, broken gold, etc., you still benefit from the significantly higher prices than a few years ago.

2. have I invested money in gold that was not actually at my free disposal?

Again, if their answer is "no," there is no need to worry for now.

3. do I regularly invest in gold to hedge against inflation or sovereign default/expropriation?

If so, now may be a particularly good time to put money into gold.

4. did I buy gold at much higher prices and now regret the investment?

If so, you may not have informed yourself well enough and are following a less than optimal investment strategy. Gold mainly serves as a hedge against the devaluation of money, its price is just as volatile (i.e. fluctuating) in the short term (!) as other values traded on the stock exchange.

5. I wonder if the predictions of the financial analysts are correct and the gold boom is now really over?

If you answer "yes" to this, you should also look at what changes there have been in our financial system and how this may affect the longer-term trend in the price of gold.

6. what fundamental changes have occurred in the financial system and how are the prospects for the long-term gold price related to this?

For the time being, nothing has changed in the current situation. The banks still have a monopoly on creating money. Should a bank get into difficulties, the state is ready with rescue packages. The money continues to be unbacked by real assets. Public and private debt rates continue to rise. The central banks' balance sheets are also getting longer and longer.

The basic money supply also continues to increase. Financial assets continue to rise in relation to real assets. The governments of the states continue to be hardly able to save. The private assets of savers are being drawn on more and more directly by governments(keyword: Cyprus). Thus, in the long run, the rise in the price of gold is only a formality.

7. Should I still invest in gold at this point?

Those who want to secure their assets against currency devaluation in the long term should continue to do so regularly, as the average price of all your gold investments will fall and significantly increase the potential profit when gold prices rise.

8. Can the gold price go even further down?

The price can, of course, fall further, but investing in tangible assets is still safe, while investing in financial assets, meanwhile, is very risky due to the threat of monetary devaluation.

9. hasn't it been shown that investors who invest heavily in gold usually end up being the losers?

On the contrary: historically - i.e. over several thousand years - it has been shown that in most cases it is or was wise to buy gold.

10. when will the gold price rise again?

As soon as the last optimistic investors on the financial market realize the predicament, the price of gold will also rise again.

Source: goldreporter.com