GOLD: The precious metal that is globally recognized as real money, a store of value, beautiful, and as lasting savings.
GOLF: The compelling game that is played globally, inspires millions, and encourages physical activity on beautiful and challenging courses.
SILVER: The precious metal that has thousands of industrial uses, is beautiful, and is recognized globally as money and as a store of value.
ENDURING: A gold coin will endure for thousands of years, will not rust or decay, and will retain its value. Golf is challenging, universal, and enduring.
TROUBLE HAPPENS: High-Frequency-Traders regularly smash the price of paper gold, governments confiscate gold, and laws can declare gold illegal, but gold persists and will outlast the HFTers and governments. Golf balls fly into lakes, drop behind trees, roll into drainage ditches, bounce out-of-bounds, and often disappear. But golfers persist, take penalties, hit out of trouble, and come back for more.
INSURANCE: We buy gold for insurance against:
- Financial crashes
- Economic uncertainty
- Devaluing paper money
- Hyperinflationary policies created by governments and central banks
- Confiscations of digital money
- Keynesian economic nonsense
- Political craziness and instability
- Loss of purchasing power
- Loss of savings.
We play golf to insure that we retain our physical and mental health, escape the stress of the financial and political world, and return to the serenity and beauty of nature.
GOOD DAYS AND BAD DAYS: Gold prices move up and down, and golfers have good days and bad days. Governments and central banks will do what they do, but gold and golf will be valuable, interesting, and challenging in the year 2115, just as both are today, and were one hundred years ago.
DIRECTION: Gold prices move up and down, but given our financial systems, gold prices will move considerably more up than down. Example: a $20 gold coin sells for substantially more than $1,100 today. Golf balls travel left and right, up and down, but ideally they fly forward, like gold prices rise during periods of “money printing” and financial instability.
DEPENDABILITY: We can depend upon global governments to borrow and spend in excess, and central bankers to “print money,” monetize debt, and devalue their currencies. In short, we can depend upon governments and central bankers to push the price of gold much higher. We can depend upon golf to reward, inspire and humble us, and to immediately demonstrate our strengths, weaknesses and mistakes.
TIMING: Timing your purchases of gold and your sales (if you must sell) is critically important. Timing is essential in an effective golf swing.
TRUST: Trust your government and central bankers to drive the value of currencies downward and the prices for gold upward. Trust the enduring quality, appeal, and beauty of gold. Trust your golf swing, trust your skills, and trust the course. Your golf ball will eventually drop into the hole, the gold, excuse me, the goal.
As I write this, gold prices on the COMEX have sold off $10 and some “gold bugs” are worried and scared. This is normal. Trust central banks and governments to force gold prices far higher. Also, thousands of (right handed) golfers are currently slicing right on dog-leg left fairways. Golfers will find their balls, recover, and play again tomorrow. Gold prices will rally “tomorrow,” the sun will rise, governments will spend too much, and golfers will strive for the perfect swing.
WHAT ABOUT SILVER? Everything important about gold is also true for silver. Expect silver prices to move substantially higher, trust that industrial uses will expand, trust demand for newly mined silver will increase, trust silver coins will rise in price as currencies devalue, and trust global citizens to understand and appreciate the beauty and value of silver coins.
Trust that silver prices will be driven, like professional golfers drive a golf ball, much farther and faster than most of us appreciate. Trust that after four plus years of declining prices, silver will eventually reach the target zone of higher prices and recognized value in the next phase of the magnificent games of golf, gold, and silver.
The Deviant Investor