| ||BY THE VERY NATURE OF HUMAN BEINGS, MANY WILL NOT BUY GOLD UNTIL EVERYBODY IS BUYING GOLD AND BY THEN IT WILL BE VERY EXPENSIVE|
It's true. People usually invest in things only when everybody else has collected large profits and it has hit the news. Someday soon, gold will be at a price boom that everybody will be talking about. And then, maybe then, people will really start buying it.
I have a friend who bought a hundred grand worth of gold way back when I was talking about it when it was about $425/oz. I'll let you look at the charts yourself and see what kind of return you would've gotten... but here's the thing - the idea is to invest and never sell.
I know it sounds weird - but someone taught me to invest what you don't need to spend (which makes you really think twice about what you spend) and then put your money in places where you can't easily get to it.
I used to teach a course about this topic. And one thing that doesn't make sense immediately is why I would say - do not pay your credit cards off first. Save first, and then one day write a big whopping check to wipe out the whole balance. The reason is that if you pay down the card - it is way too tempting to crank it up again. Making your investments hard to liquidate is the key to investing because the key to investing is LONG TERM.
This sounds boring to some of you, but the smallest action of buying maybe a 1oz coin or bar every month if you can afford to (getting hard to do this now, because of how expensive they're getting!) but let me challenge you with this thought. The moment you start investing diligently and earnestly is when you become rich. Why is that? Because rich people invest, and the inverse is also true. If you invest, you're rich.
My friends Amy and Janey were all set to buy a gold coin each on State Street one day, but they were worried - what if it goes down in value? (Real Estate will for sure go down, and still there are deals being made to my amazement). Or here's an adorable question... Amy said, "where should I put it?" I said, "put it on the hood of your car, I don't know!"
We were having this discussion when gold was $475/oz. Their investment would've gone up nearly double by now, but time passes.
Should I do a video tomorrow of me buying a coin so y'all know what to do when you walk in a coin store?
| ||Posted 9/24/2007 10:09 PM - 1799 Views - 34 eProps - 21 comments|
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