Gold Investment Lesson’s From a Ten –Year- old
While doing some research for today’s blog post, I received a surprise visit from non -other than my 10 year-old son. Something was awry; he was dawning his Sundays best, including tie. Taking a seat across from my desk, he sat up straight, looked me in the eye and said, “Sir, I would to make a Gold Investment.” Then placed his Passport saving book on my desk, and confidently awaited my reaction.
Ok, I’ll bite. “How have you come to this decision, Sir?”
He delivered his rehearsed presentation, “In 1970 you could buy gold for $37 dollars an ounce, now it is over $1000 an ounce. I don’t know how much profit that is, but it is a lot! More importantly to you and me is; in 2000 I could have made a gold investment of $273 dollars an ounce, that means four every $1 dollar I invested in Gold then I would get $4 back today. So if we buy now you can stop saving your money for my college, I can pay for it myself. “
“Gold Prices are down today, and what if they keep going down?” I said.
Obviously prepared he responded, “It doesn’t matter what the price is today. It doesn’t even matter what the price is tomorrow or next month. I have ten years for it to go up. That’s what you say, “put your money in quality and let time do the rest.”
Despite his passion he was missing a couple of key fundamental elements in his Gold investment strategy. There is one thing, however; we could all stand to be reminded of. The value of time. In the emotional surge of today’s gold rush, accompanied by up to the minute charts, we sometimes forget the impact time plays on our investments. Perhaps we would all be better served to stop worrying about the day to day spot price, and just be satisfied that we made a wise decision when we chose our Gold investment.
Zachary A. Pew
Tags: Gold Investment Lessons, Gold Investment Lesson’s From a Ten –Year- old, Learn How To Invest In Gold
