The price of gold is historically low

What should you do?

Here is an insight from our friends at LinGOLD.com who kindly agreed to explain how they advise their regular and established customers during the current price decline.

Since the beginning of this year, we have seen a significant decline in the price of gold. We are witnessing, without a shadow of doubt, a significant price manipulation of the “paper” gold and silver markets. Informed large investors are moving out of ETFs (paper gold) in order to buy physical gold, a true, tangible asset. The “paper” gold market has never been reflected so little in the market for physical gold than today.

We have regularly commented and indicated how we believe the market is manipulated – “The gold market in the hands of speculators, is no longer connected with real gold stocks, real gold production, real gold bullion and real gold coins …”

We can legitimately ask the question, what should we do?
Wait, buy or sell?

After such a fall, we can expect a sharp recovery, and it may be difficult to reposition and buy at a good price.

In a strategy spreading  investments in gold over time, it still seems interesting to perceive these declines as great opportunities.

The two charts below illustrate what we recommend to our members on investment and allow you to understand the difference between “emotive savings ‘(not to follow) and a “rational savings ‘ in the context of our LinGOLD Savings Plan (LSP).

Our original members do not make the mistake and always still take full advantage of these fluctuations to strengthen at a good price, or on the contrary they grin and bear it by supporting by supporting a decrease in latent potential value.

In reality, there is no good solution for a holder of gold. Either you decide to leave the risk, never being able to come back and accepting heavy losses, or you hang in there and you run the risk of further devaluation and potential losses for some time to come.

In all cases, as indicated by Paul McGowan of LinGOLD.com,, “This decline illustrates perfectly the lack of coherence and the inconsistency of the markets. The only feasible alternative? Physical gold, of course; the insurance against crises, inflation and state interference. Gold is the only sufficiently tangible asset with a real true value to brave all the economic storms. Personally, I am taking advantage of the opportunity to top up my holdings cheaply. ”

Economic analysis of the gold price decline in by Charles SANNAT, Head of Economic Research, AuCOFFRE.com: “In the short term, while it may be very painful for the price of gold. Gold could go test new lows. (…) It is possible that we are heading for these new levels.” In an editorial entitled «Gold relives its explosion of 1980?” he says:: “Gold has something different to all that can be manipulated because it is a credible alternative, with history and worldwide recognition compared to other monies or currencies – because since the beginning of time gold is money all over our planet ”

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The price of gold is historically low was first posted on July 3, 2013 at 1:27 pm.
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