If you’ve been reading the plethora of articles written in the past week or two about the death of gold (or some similar sentiment), then you may be thinking twice about buying or holding onto your gold investment, especially your paper gold (gold stock, GLD). But, let’s be clear: don’t believe the hype.
While we cannot predict the future, we can look at the past. Quite simply put, gold has survived for millennia, and has proven to be valuable and a successful investment for many cultures and civilizations. Surely, it can survive its recent decline in value.
Some analysts and investors have given up on gold, though perhaps some have ulterior motives. The truth is, gold’s decline is but a mere blip on the radar when you look at its historical performance. It may not be finished dropping either; we may yet see the precious yellow metal reach a new low in the coming weeks. However, history tells us that gold will bounce back and be more valuable than ever, before we know it.
So before you sell your gold, think twice; there is no need to push the panic button, especially if you invested when the price was high. Gold investors should never take a loss; the metal performs too consistently well over the long-term to accept a loss on your investment.
If you’re not convinced, and are skeptical about investing in gold, then consider investing in physical gold rather than paper gold. Physical gold has many benefits over paper gold, including more stability and security. Its value is unaffected by market crashes, and you possess the metal physically in your vault or other type of secure storage method.
We encourage you to educate yourself and make investment decisions based on the conclusions you come to on your own or with the help of a trusted financial advisor. Don’t be scared into selling (or not buying) gold just because you read an article about someone claiming the sky is falling. Gold is here to stay. Besides, you can use the current low prices to your advantage, and invest in physical gold coins and bars before the prices increase. If history tells us anything, your investment will pay off significantly over time.