Despite the recent weakness in gold and silver prices, Knightsbridge believe that they are buys for the long term. Here are some of the reasons why:
- Gold and silver are hedges against inflation. Inflation is the rate at which prices for goods and services are rising. Gold and silver have a long history of holding their value during periods of high inflation. This is because they are seen as a store of value and a safe haven asset.
- Gold and silver are scarce resources. The supply of gold and silver is limited, and it is difficult and expensive to mine them. This scarcity helps to support their prices.
- Gold and silver are in increasing demand. Demand for gold and silver is increasing from both investors and consumers. Investors are buying gold and silver as a hedge against inflation and economic uncertainty. Consumers are buying gold and silver jewelry, coins, and bars.
Of course, there are also some risks associated with investing in gold and silver. For example, gold and silver prices can be volatile and can fluctuate in the short term. However, for investors who are looking for a long-term hedge against inflation and a safe haven asset, gold and silver may be good investments to consider.
Here are some specific ways to invest in gold and silver:
- Buy physical gold and silver. This can be done by buying gold and silver coins, bars, or jewelry.
- Invest in gold and silver ETFs or mutual funds. ETFs and mutual funds track the price of gold and silver and allow you to invest in them without having to buy physical gold and silver.
- Invest in gold and silver mining companies. Gold and silver mining companies are companies that mine gold and silver. Investing in these companies can give you exposure to the price of gold and silver without having to buy physical gold and silver.
Gold ETFs Have Lost All Their Year-to-Date Gains
Gold prices have been falling in recent months, and gold ETFs have followed suit. The SPDR Gold Shares (GLD) ETF has lost all of its year-to-date gains and is now negative. This is a sign of anxious selling among both individual and institutional investors.
Other Precious Metals Have Weakened As Well
Silver and copper have also weakened in recent months. Silver has dropped nearly 6% over a three-session decline and is now at a six-month low. Copper near-term futures have sunk nearly 0.5%.
Strong Dollar Keeps Whacking Gold Price
The dollar’s strength is one of the main reasons why gold prices have been falling. The dollar is the world’s reserve currency, and gold is often seen as a hedge against inflation and a safe-haven asset. However, when the dollar is strong, it makes gold more expensive for buyers outside of the United States.
Rising Bond Yields Also Weighing On Gold
Rising bond yields are another factor that is weighing on gold prices. Bond yields are the interest payments that investors receive for buying bonds. When bond yields rise, the opportunity cost of holding gold increases. This is because investors can earn a higher return on their investment by holding bonds instead of gold.
Conclusion
The recent weakness in gold prices is a reflection of a number of factors, including the strong dollar, rising bond yields, and anxious selling among investors. It remains to be seen whether gold prices will rebound in the near future.
Gold, silver, and the Sovereign Individual are all related in that they are all seen as ways to protect oneself from government overreach and economic instability.
Sovereign Individuals are people who strive to be self-governing and independent of any external authority. They are responsible for their own life and well-being, and they make their own choices without interference from others.
Gold and silver are often seen as safe-haven assets because they have a long history of holding their value, even during periods of economic turmoil. Sovereign Individuals may invest in gold and silver as a way to protect their wealth from government confiscation or inflation.
In the book The Sovereign Individual, James Dale Davidson and William Rees-Mogg argue that the rise of the internet and other technological innovations is creating a new world in which individuals will be able to exert more control over their own lives. They believe that this trend will lead to a decline in the power of governments and the rise of Sovereign Individuals.
Some believe that gold and silver will play an important role in the world of the Sovereign Individual. They argue that these assets will be used as a form of currency and a store of value in a world where governments are less powerful.
Shayne Heffernan
