Home > Articles by PoliticalMetals > Gold is NOT an Investment. If you’re Looking for an Investment, Look Elsewhere.

Gold is NOT an Investment. If you’re Looking for an Investment, Look Elsewhere.

In the “About” page, I listed 5 points forming the theme of this website, which was set up to share my personal experience in discovering that the debt-based financial world as we know it today is one gigantic Ponzi scheme. That it was designed to work against people who’ve expended labour to earn in excess of what they needed, saving that surplus for a time in the future when they could no longer exchange labour for the daily necessities of life.

The first of my 5 points was Do not invest in gold or silver. Own them in place of Fiat Money

Distinguishing between investing and owning gold (or silver) goes beyond semantics. It lies at the core of why so many are still reluctant to make gold or silver a part of their asset portfolio despite the financial turmoil and uncertainties surrounding them. Owning gold is not meant to make you richer. It protects you from getting poorer due to rising inflation.  It preserves what you already have - performing that critical function of money (Store of Value) better than any other forms of money available today.

The idea of not investing in gold is not my original idea. It’s a concept I learnt from many who’s been in this space long before I discovered that gold is money. The recent presentation given by James Turk, founder of GoldMoney, at the 2011 Munich DEG conference on 29th April 2011 explains this concept very eloquently.

Also reproduced below are some charts appearing in the video for your easy reference. (They were from a previous presentation made a few months earlier)

Exchange rates of gold & other currencies over the past 10 years

Gold (the Green Portion) is not an investment

Price of Crude Oil in GBP, USD, EUR and Goldgrams

Stocks measured in Gold

The implications for the fiat currency

Gold in GBP. Similar charts in USD, GBP, EUR & SFR display the same parabolic up trend


Q&A after the presentation

  1. June 10, 2011 at 11:56 PM | #1

    ya there is lot of fake investment dealers in market.So its not simple to invest in gold.but When we own gold not for investment then there may be lot of problem like storing and safety.Its not easy to keep gold at home.So is there any solution for this?

    • June 11, 2011 at 2:29 PM | #2

      You don’t have to, in fact should not, keep the bulk of your gold and silver at home, especially if the value of bullion is substantial. For substantial sized holdings you plan to set aside for the long term, you could check out companies that provide Bailment Services. There are many out there, but I have a comprehensive review of 3 of the more established and reputable Bailment Service Providers.

      For smaller amounts, especially coins and small bars, there are several bullion dealers that provide third party storage facilities. Check this out: http://politicalmetals.com/coins/

      Before you use any third party vaulting services, be aware of the various types of storage accounts, and make sure that it is an Allocated Account. Learn more about Allocated Vs Unallocated accounts, Bailment Services, and Counter-Party Risks here - http://politicalmetals.com/buying-storage-options/

      Finally, despite the inconvenience and “problems” of storing your metals at home, it is recommended that a *small* portion of your bullion savings (especially in coins) should be physically in your own possession to take care of emergencies.

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