Gold is the New Plastic
Gold is the New Plastic.
If Gold is the new, then plastic must be the old…
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Is it possible for both to be the old and the new?
Is it possible for neither to be old and the new?
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Traders and investors are taught to be looking for “Edges”; quantifiable arb opportunities that can be exploited in seeking alpha.
So doesn’t it make sense to discover the new before it is widely “known”, and beat the crowd?
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The Gold card is American Express’s valued currency. We can be up-sold to the platinum version, but Gold may be good enough for most of us.
I wonder if Benjamin Braddock understood Plastic was also in play when he was being seduced by Mrs. Robinson.
One of my daughters came out of college, struggling with debt from overuse of credit cards.
We had a long talk about how valuable a tool it is, as long as it is understood as a convenient way to pay for things, provided invoices were promptly repaid.
She learned that lesson well, and understands how important that is for long term financial health.
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A look at a gold or silver chart clearly demonstrates the lofty heights to which we have come in a few short years.
Did you think to invest in the precious metals prior to the explosion in their value?
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Home prices have fallen sharply, the dollar has plunged , and gold and silver have soared.
The old and the new continually change places, based on a host of variables.
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Currently, the U.S. government is in debt.
Washington continues to print money, in an attempt to solve the economic woes of our nation.
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Unfortunately, the administration is entrenched in the old way of thinking, and mistakes of the past continue to be repeated.
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How high is high?
How low is low?
As prudent speculators, as conservative investors, I believe that anyone who depends on anyone else for our financial well being is mistaken.
Study and learn as much as we can from history.
Think.
Use common sense.
Take action.
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If a college Graduate like my daughter can come out of school deeply in debt, with no courses throughout 17 years of “education”, it is testimony to a failed system. When these same students go into the public service sector, is it any wonder that governments have no idea how to solve their economic problems?
Print money, raise more taxes.
How creative.
They need a plan to eliminate it as fast as possible, and start building a positive balance sheet, just as my daughter did.
If the government calls and asks her for a loan… don’t be surprised if she whacks them with a hefty interest rate because of their poor credit history.
She will probably want payment in gold, silver, or some other currency other than the dollar.
If ever there was a bubble…it may be Gold…until we understand the relative nature of fiat currency, we don’t know how high before it pops.
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What is your five year plan? 10? 20?
Make decisions and invest for the future.
Survive first, then accumulate. Diversify… and always watch which way the wind is blowing.
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I love to blog here regularly… but as John said, “life gets in our way while we are making all our plans.”
Three new Grandchildren, attending to business, and a month of fun in Florida escaping seven feet of snow have kept me pre-occupied lately.
The tools remain here in place, as a public service to those who care to learn more about core foundational ideas for achieving financial freedom.
Sometimes just surviving through difficult financial times is a necessary part of growth for the future.
I will continue to showcase some strategic thinkers of our time. They may not all agree; that is helpful in my opinion. The important idea is for us to make our own decisions, and continually adjust the sails of our own ship.
For those who want to follow my more active thinking on learning how to trade and invest, follow me here.
The system I teach through public posts, on twitter, and privately in our member area/chat room can be applied to normal investment vehicles such as gold, silver, crude oil, Russell 2000, euro, etc. A number of my students are finding the system works well with a variety of instruments.
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