This week’s video is by Naill Ferguson. I chose this video for a couple of reasons. First, a few people emailed me asking if they should buy gold and silver. Well, this blog doesn’t give investment advice. Having bought gold and silver several years ago, I am somewhat biased in my views. Moreover, having bought each at much lower prices, I have a different perspective. It doesn’t matter when or what price I bought gold; the point is that if you are going to buy gold, silver or any other investment you need to understand why. If it doesn’t make sense for you, don’t do it.
Many people don’t understand gold’s role in the financial world and it’s understandable; for gold has been in the background for decades as we’ve been on a paper based or fiat based money system (Globally) The system works as long as everyone has confidence in each other’s currency. Once confidence is lost, gold emerges as one of the only assets to maintain or transfer one’s wealth until the storm passes. Much of the animosity towards gold come’s from a lack of understanding and that many people feel as though they may have missed out. The main reason gold is being bought is that people realize our system is fractured and in need of repair. Gold is mainly bought by larger investors. So, at $1300 per ounce, silver ($22) will begin to be seen as a more affordable alternative. Once silver is out of range, gold stocks begin to look attractive. This, along with breathtaking and gut wrenching corrections and explosions in price forms the cycle we are currently in. Until the system is “out of the woods” gold and silver are in a bull market. Sure, there are other factors. If you don’t like gold or think it’s for lunatics holding prayer meetings with aliens along long winding roads, stay away from it. I’ve heard how stupid, bad, moronic and outdated gold as an investment was for the last 8-10 years. I just don’t have the time to argue why or when you should buy or sell gold anymore. The reason for posting Naill’s video is to educate you on the financial system so you don’t get taken to the cleaners!
“Financial history is the back story behind all history” Niall Ferfuson
So, with that out of the way, I am only recommending that if you want to buy gold or silver you educate yourself on money. On Money? Yea, not just what it looks like, but the monetary system and its history.
Most of what I “put together” to make my own decisions comes from studying history, trends and psychology. To my knowledge, Niall Ferguson is one of the most well researched financial historians (he’s actually a historian) He shares much of his knowledge on this subject in ‘The Ascent Of Money’ Here you go!
Part I
You Can Watch the Remainder of The Video By Going To PBS
The Ascent Of Money
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