If you’re trying to get rich relatively quickly, honestly, this blog isn’t the blog for you. While you can certainly make some money, it’s extremely, extremely rare for a commodity or any market to go up quick enough for someone to get rich relatively soon without leverage. And leverage means debt, which is bad.
About a month ago, I read a comment on another website in which a regular guy put his entire retirement portfolio into a leveraged silver account. He literally said anyone not doing that is “stupid”. Unfortunately, within a week or so of him saying that, silver prices dumped about 30%, and he most likely lost everything. It just goes to show you how greed can destroy.
Why Gold Price Increases Are Offset
Plus, and this is something most gold bugs won’t say, the price of gold might go high in the next few years — I’m personally banking on it as I buy gold. But it won’t be all profit. A huge portion of the increase in gold prices is simply going to be a fall in the value of the dollar.
After all, if gold goes up 35% and the dollar goes down 30%, then that’s not exactly the melodramatic gold explosion that it would seem. This is oversimplifying things, of course, but it’s something to keep in mind.
So Why Invest in Gold Bullion?
I’ll probably be writing similarly toned arguments in the future that are more in-depth, but this is a critically important concept. Gold is great security — but not always profitable. Sometimes investing in gold can keep you from making money with the investment for decades. It’s not a sure-fire “get rich no matter what” kind of an investment.
This is one reason I’m not a “gold bug”. There have been plenty of gold investors who have been preaching about gold for decades… stay away from these guys. They’re clueless. Markets like gold are only sometimes profitable — but they’re always secure if you have the physical form of gold.
How to Get Rich Quick
I have no idea how most people can get rich quick. Of course it’s possible — but most won’t ever come close to getting rich or even making a huge return in a short amount of time. If it was such a simple concept that you could find out how to get rich in a blog post, all the smart billionaires would already be flogging the technique until it didn’t work any longer. It’s part of how the market works.
Sorry to write such a “downer” article, but I think that a lot of investors need to read something like this from a fellow gold investor, just to keep their feet on the ground. If you like me telling the story how it is, make sure to sign up for future updates. I personally email you when I’ve uploaded something else onto the website.
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