What the Price of Gold is Telling Us

I hate doing predictions, which is why this letter is more about what I am doing than what you should do. It’s easy to look back and pick your winners, avoiding the losers. Hopefully, by now, you know that I’m good with sharing both. But I have to ask, did you buy any gold in April of 2024?

When I started buying gold seriously around 2015, it was about $1,500 Canadian an ounce. On April 1, 2024, in a letter posted here, “Is Gold a Good Investment?” I discuss what the bees teach me and why I’m still buying. In October of 2024, I addressed it again: “Is it too late to buy gold?” Today, as I write this, the price of an ounce of gold hit $7,140 Canadian and silver $154 an ounce. So, what does this mean, and what should I do now?

While the world is a mess according to most politicians, what is happening beneath all of that is the continual devaluing of money. It takes more money to buy something than it did a year ago. Governments are increasingly in debt, and political uncertainty and threatened occupations and wars are a nice cover. We don’t notice that if we are worried about survival or changing passports by force.

People are afraid; nothing is secure, so we look for security. Gold provides that. A place to store value at the time you buy it.

Now that some of the $1,500 gold is worth $7,100, should I sell some of it?

Before I address that question, this one is probably more important.

If I did, how would I invest the money? Simply, what would I do with it?

I have no idea. Keeping it in cash is not a good idea, given what I said above. Buying REITs, although attractive, doesn’t give me the same protection as owning gold does. I already have silver, as I explained in a previous letter, “Gold or Bitcoin-Dumb or Dumber?” But I have experience with precious metal crashes as discussed in that very painful confession. I bought silver 40 years ago and still have it today. I guess I just answered my question.

So, I’m not selling any gold or silver. In fact, I’m still a buyer on regular timed purchases. 

At $10,000 an ounce, I may do a little harvesting, but then again, is there a better place to store that value? At that number, more land banking seems to make better sense to me. Stay tuned.