• 310 days Will The ECB Continue To Hike Rates?
  • 310 days Forbes: Aramco Remains Largest Company In The Middle East
  • 312 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 712 days Could Crypto Overtake Traditional Investment?
  • 716 days Americans Still Quitting Jobs At Record Pace
  • 718 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 721 days Is The Dollar Too Strong?
  • 722 days Big Tech Disappoints Investors on Earnings Calls
  • 723 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 724 days China Is Quietly Trying To Distance Itself From Russia
  • 725 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 729 days Crypto Investors Won Big In 2021
  • 729 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 730 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 732 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 732 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 736 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 736 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 736 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 739 days Are NFTs About To Take Over Gaming?
Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Taking Profits in Gold

"...Go on - choose where you'll keep your profits. Then sell your gold if you dare..."

IMAGINE YOU'D been smart and put some cash into gold.

You didn't need to buy before the Gold Market took off. Buying gold at the start of last month will do fine.

Six weeks on, your imaginary self now shows a profit of 14% in terms of the Dollar. Measured in Euros you stand some 13% higher. Versus the Canadian you're 16% up. Your return in terms of the British Pound comes a shade under one-fifth in less than a month and a half...

Too hot, too fast? You were smart in December; now it's time to get smart again.

So you look at the charts...and you decide to take a profit in gold.

I mean, it might all be over below $900 per ounce. The loss of confidence in central bankers could suddenly reverse this weekend. Sentiment in the credit markets could return like sub-prime never happened.

Oil quadrupling...grain prices at record highs...surging demand for copper from China...all the reasons for today's rising Gold Price might evaporate with a few choice words from, umm, well from Ben Bernanke or Hank Paulson.

Hell, even bond prices might come down - driving yields above the inflation rate and putting a stop to the destruction of wealth in your mutual and pension funds.

So you choose to get out of gold. It's time to take profits

Question: Where will you now put your money?

Hmmm...maybe you should switch into stocks? Yes, so the S&P now stands more than 10% off its top of the summer. The slump took a while, too...ticking first lower then higher, but never quite high enough to prevent a grinding loss for investors.

Kind of sounds like the Tech Crash, but with finance stocks leading. Things change though. Or rather, they might do...even if Bernanke's fresh promise of cheap money failed to stem the slide this week.

What about bonds? Sure, yields are now below inflation. But everyone loves a regular income - the bond bull-market proves that, especially if you count the gains in the shrinking Dollar.

Or you could hold your wealth in real estate. Prices turn when no one expects it, remember! And no one expects Florida, California or even London house prices to turn higher any time soon. Least of all potential home-buyers waiting for prices to fall further before they dare to get in.

No? Well okay...simply keep your gold profits in cash then. You know, cash like the Dollar, or the Euro, or Loonies, or Pounds.

Just decide first which currency you trust to hold value. Go on - make your choice and then sell your gold.

 

Back to homepage

Leave a comment

Leave a comment