Why You Must Not Wait to Buy Gold

Why you must own gold

Bullion.Directory precious metals analysis 2 April, 2015
By Terry Kinder
Investor, Technical Analyst

On any given day, it’s easy to convince yourself that everything is OK. Today will not be the day the crisis comes. It feels like there is always more time to prepare. You may be right. Then again, you may be wrong. The time to prepare is not when the crisis is upon you, but before when there are more options available. One thing you must have as part of your contingency plans is gold.

I spend a good deal of my waking hours analyzing, thinking about, and then re-analyzing the price of gold. The important support and resistance levels of the yellow metal are etched on my brain. I can, and have, make the case for why you can or should wait just one more day to obtain a better price.

However, what I can’t tell you with any certainty is what tomorrow will bring. Let me give you an example of just how uncertain and tenuous life is. My Mom, for many years, has lived in a mobile home. She and my Dad moved there years ago after Dad got sick and they decided to move back to Missouri to be closer to family. My Grandpa purchased the mobile home new back in the late 1960’s and lived in it for many years. A number of different relatives lived in the same mobile home over the years, including a cousin and Dad’s mom as well.

During that time the mobile home had a few electrical issues. The last issue was pretty frightening. One of the electrical outlets flamed up and singed a curtain in one of the bedrooms. Last year, my older brother and his wife purchased a house for Mom to live in and she moved out of the mobile home. Just recently, Mom sold the mobile home and the new owners – aware of the electrical issues – began working on rewiring the home.

A couple of days ago the new owner called my Mom to let her know what they had found. While rewiring the home, they discovered that four electrical wires had screws driven through them. This occurred when Mom and Dad had a company come out years ago to put a new roof on. Where the screws penetrated the wires, the insulation burned in each of four different locations around the home.

So, over the years, Grandpa had to cap off several electrical outlets, four different small fires burnt through insulation near the roof, and an outlet flamed up, nearly burning a curtain. Somehow, one set of grandparents, another grandmother, a cousin and her family, as well as my Mother, Father and younger brother all got out alive. They were either very lucky or a higher power kept them safe. Surely, had any of those electrical problems sparked a larger flame, the mobile home would have burned in mere minutes.

Likewise, in the world we live in, there are financial flame ups all the time that could scorch the economy. Like my family, some days, whether through luck or a higher power, we manage to escape the danger. But, nobody knows the day when a seemingly small spark will ignite into a flame that threatens to consume everyone and everything we hold dear.

That is why you must own gold. Not owning gold is like waiting until your house is in flames before thinking about owning a fire extinguisher. Once the fire is licking up your curtains and the roof is involved, it’s too late. Perhaps the fire department will arrive in time to keep your home from being a total loss. And, let’s be honest, the home is one of the least of your worries for it can be replaced. However, nothing can replace your loved ones.

Making your home safer is fairly simple. Buy some fire extinguishers and know where they are in the home and how to use them. Have an escape plan in case the unthinkable happens. Similar steps should be taken with regards to your finances. Have a plan in case an economic crisis arises. Keep a little cash set aside and within reach in case it becomes impossible to otherwise withdraw money from banks. Have some gold to hedge against a crisis – whether it be a currency devaluation, banking crisis, natural disaster, or some other situation where the normal economic order is disrupted.

Perhaps your family will get lucky. I know mine did. But, shouldn’t you do more than rely on mere luck to protect your family should an isolated financial spark become the flame that threatens to burn down everything you have worked so hard for? If you wait to buy gold until the spark becomes a flame it will be too late.

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