Gold Climbing From Record High To Record High: Why Buy Now?
There is no question that gold owners have been finally and spectacularly vindicated over the last months: the “barbarous relic”, the “worthless shiny rock”, as many have called the yellow metal, once again proved its value as a true safe haven. In the face of inflation, intense geopolitical turmoil and widespread uncertainty, investors fled to safety “en masse”, as they consistently, repeatedly and predictably have done for decades (if not centuries), inevitably pushing the gold price to unprecedented heights.
Apart from the significant financial gains that gold investors have seen, true gold bugs also finally reaped the indisputable satisfaction of being proven right and being rewarded for their patience and the strength of their conviction. Those who had invested in gold for the right reasons and who did so before this latest surge, those who stood steadfast by their beliefs, who remained calm and composed in times of widespread doubt and those who held their nerve when others panicked, were the biggest winners of this rally and deservedly so. For years, countless mainstream financial analysts and “experts” dismissed gold and argued that its time had passed, that its safe haven status was no longer relevant and that it couldn’t be relied upon as a shield against inflation.
However, the precious metal proved them all wrong, yet again. It performed exactly the way it was supposed to, it demonstrated beyond a shadow of a doubt that it is still universally recognized and trusted as a solid shelter from any storm.
And yet, despite this bold demonstration of strength and reliability, there are many investors that wonder whether it is too late to buy gold, whether it is too expensive and whether it is smarter to wait until the price retreats from these historic highs. Quite a few individuals have asked me these very same questions. Of course, I understand where they’re coming from. After all, the vast majority of them are seasoned investors, they know the elementary rule of “buy low, sell high”, and they are justifiably apprehensive about buying something that is priced at all-time highs.
This apprehension certainly seems rational, prudent even, at first sight at least. However, upon closer inspection, it quickly becomes apparent that this line of thought fails to take into account the full picture. Thinking about gold from this narrow perspective presents a widely misleading picture. Gold is not comparable to stocks or to the currency market; it cannot and should not be evaluated in the same way. Highs and lows do not represent the same thing and should
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LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
