What to do if the gold price falls?

Important answers for gold buyers

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

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

If your answer is "no", then you need not worry for the time being. However, if you do not want to sell investment gold, but gold jewelry, broken gold, etc., you will still benefit from the significantly higher prices than just a few years ago.

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

Again, if your answer is "no", there is no need to worry for the time being.

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

If so, now may be a particularly good time to invest money in gold.

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

If so, then you may not have informed yourself well enough and are not pursuing an 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 whether 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 consider what changes have taken place in our financial system and how this may affect the longer-term development of the gold price.

6. what fundamental changes have taken place in the financial system and how are these related to the outlook for the long-term gold price?

Nothing has changed in the current situation for the time being. The banks continue to hold the monopoly on creating money. If a bank gets into difficulties, the state is ready with rescue packages. The money remains uncovered by real assets. Public and private debt rates continue to rise. The balance sheets of central banks are also getting longer and longer.

The basic money supply is also continuing to increase. Financial assets continue to rise in relation to real assets. National governments are still barely able to save. The private assets of savers are being drawn on more and more directly by governments(keyword: Cyprus). In the long term, the rise in the price of gold is therefore only a formality.

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

If you want to protect your assets against devaluation in the long term, you 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 lower?

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

9. has it not been shown that investors who invest heavily in gold are usually the losers in the end?

Quite the opposite: 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 rise again.

Source: goldreporter.com