As a happy Reaver's five steps

As a happy Reaver's five steps 

Given the decline in gold prices, it has been a tough time for those who are considering investment in gold. To help you understand understnad gold, ignoring anything, please read our 5 simple steps. 

1. The mainstream media ignored 

This occurs because gold fell Courtesy Felix Salmon Reuters: "This is important, Reavers are seen to have not only foolish beliefs, but it has lost a substantial amount of money and gold is a fear trade, rather than a greedy trade - which is defense, defense of investors is always special to avoid loss if you lost money betting on the high-flying tech stocks, it is more likely for the money than you can afford to lose, if you lose After the money put your life savings into precious metals. " 

Mainstream media mob has a three-pronged pitch fork attack especially for gold, they often like to wield it. 

The first aspect is that it was recently used Paul Krugman who wrote that he hoped the final collapse of the gold price in April will bring intellectual surrender intelligence insulted pins. Implied, walked process is completely blind and mislead those of you who invest in gold. 

The second aspect is that gold is a bubble, the bubble has now burst. Many of their joy. Gold apparently never in a bubble. Â bubbles requires the participation and enthusiasm of the masses of assets, combined with the large amount of leverage used. Gold does not fit the bill - only 1% of global financial assets, rarely held with the lever. 

Third prong claim payment is just a fear trade, and the recent decline in gold prices that investors now feel more confidence in the economy, and to feel more worried about gold. IZA Kaminska recently in the British "Financial Times" wrote that it is becoming "more and more difficult to justify the role of the gold commodity landscape has now been reset. 

2. Do not listen to predict 

Speaking of the media, no one loves the price forecasts, like they do. However, the price of gold is rarely what kind of gold investment is all about. 

These investments in gold, few would do it because they see the price reached $ 10,000 an ounce, but rather because they see the central bank and the government to make poor economic decisions which will drive down sovereign monetary value, and therefore Gold prices hit a new high. 

Full-time gold commentators, who have vested interests in gold rarely completely review or revise their forecasts. Few places what will happen on the time scale gold. Jim Sinclair recently predicted a price of $ 3,500 when this happens do not give a timetable, rather than finding debt levels, and the consequent currency war, which will make the price of gold to fly way. 

But of course, we did not hear about the legend, if the Chairman Sinclair, predictions to the contrary, we hear those who prefer gold before the recent collapse of Goldman Sachs told clients short gold. 

Similar organizations continue to adjust, modify, and abandoned gold price forecast, according to the short-term development of the market, such as the stock market performance and employment. They rarely put cash in the bank's confidence in the long-term impact of loose monetary policy. So, why gold price forecast from high finance often wrong - see this chart from Casey Research smoking gun. 

3. Attention to fundamentals 

What are the sources? They are the same, the mainstream media ignored. Thus, when the end of the financial reporters condemn gold, because the strong performance in the stock market, the dollar's strength, a happy Reaver check behind the curtain to ensure that banks are still printing money, negative interest rates have not been amended, the central bank continues to buy gold. 

To help you pay attention to the fundamentals, ask yourself the following questions: 

Restore confidence to the financial and monetary systems do? 

There are more or less titled EU countries in financial difficulties? 

The Fed is still pumping money, and they have a solution to repay its debts? 

The central bank is still printing money, currency devaluation? 

Loose monetary policy is likely to continue it? 

The effective interest rate is positive do? 

The central bank still buy gold? 

Individuals around the world are still buying gold? 

4. Do not guess, but to preserve wealth 

Reaver does not invest in gold, and if they are looking to hit the market, quick profits and take a gamble a little bit. Those who want their gold to do so because it is the money, which will in the future to maintain its value. 

The unique properties of physical gold, which means it will never completely worthless. Those who have been speculating that those who have felt the pain of gold prices (and the reasons for it), but those who have felt they have been linked to physical gold is neither pain nor happy. The amount of gold in them has not been reduced, it is only those fried paper gold to the person who would question its price. 

The drive will support gold prices over the past decade, has undergone physical gold buying and hoarding. Speculative gold, indicating that investors want to be able to sell it more than the original bill to buy dollars for gold. Do not want to preserve their wealth of gold to buy more paper, they have chosen a different (senior) currency. 

5. Ignore Price 

This is what we talked about a lot of research units. When we discuss the price of gold, the value of gold is not the same. This is, as we said above, remain unchanged. 

However, when we talk about the price of gold, we should consider the price of gold currency. You do not even need to know when the price of gold, currency prices plummeted. This week the Bank of England adviser, Charlie Bean reported that the value of the pound against other currencies has fallen 25 percent in the past five years. Pound for gold has fallen more than 90%, the other major currencies also had a similar experience. 

Thus, while the price of gold in U.S. dollars, sterling and Indian rupee, to name a few cases, a slight decrease in the last month, which is the monetary value of gold decreased compared sovereignty is not. 

5 Simple Steps ... 

Therefore, rather than worry about the price of gold by the mainstream media lament, do not look at short-term forecasts, they are short-sighted, rarely see the fundamentals. The same fundamentals affect currency values, rather than the value of gold. 

Gold bullion is a unique savings vehicle and possible disagreements largest financial assets. So this is a never-ending media circus surrounding the gold market, can be distracting, and people stop buying gold to the wrong reasons. 

We hope that five key points to help you find a clear Oprah "sound bites, the West Bank and general misinformation among propaganda.