Why You Shouldn’t Be Selling Gold

In a vivid example of just how nervous investors have gotten over gold, one of the biggest ETFs to track the precious metal — SPDR Gold Shares GLD +0.01% – saw $5.4 billion hit the exit door year-to-date, according to ETF Trends. More about record low flows in February for gold ETPs.

And it’s not just then, Bloomberg News noted Thursday that John Paulson saw an 18% decline in his $900 million Gold Fund last month, and a 26% knock so far this year.

However, one strategist took to the airwaves on Thursday to caution that investors may be playing with fire with a bet against gold now, which essentially boils down to taking on central banks. Here’s an excerpt of that CNBC ‘Squawk Box Asia’  interview with Philip Silverman, managing director at Kingsview Management in NYC:

“When you see central bankers acquiring gold, you kind of take it like this: You don’t fight in the stock market when the Fed (U.S. Federal Reserve) is easing, so you wouldn’t want to fight the central banks when they’re buying gold, because they have deep pockets.”

Indeed, the World Gold Council said central banks bought up the most gold since 1964 last month. South Korea’s central bank was among those who bought more in February. And Silverman says that there’s no sign that central banks will stop printing money soon — a key support for gold prices as it acts as inflation hedge. The ECB is potentially tapped to cut rates Thursday and gold was rising ahead of that.

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Wealth Transfer Planning

Precious metals have always been a safe haven for investing in high inflationary times. Historically speaking, a recurring cycle that always seems to repeat itself is periods of high inflation as a precursor to the crash of paper currencies. Those who understand this wealth cycle and position themselves in gold and silver are those who prosper.

Precious metals are assets that will never lose their value. They are not subject to systematic risks as paper money and serve as a hedge against inflation and other threats of devaluation. Cornerstone Asset Metals was established to help guide investors safely in and out of the precious metals market.

The Great Wealth Transfer

Watch Terry Sacka: The Wealth Transfer show on the Christian Television Network discussing the financial and influential decline of the Western world and the simultaneous wealth increase of the East. With the wealth of nations shifting, it’s imperative to understand moving forward how hard tangible assets will allow you to maintain a quality lifestyle.

Visit the Wealth Transfer archive for more episodes.

Learn more about how buying gold and silver today is a smart move for your investment portfolio.

» Contact Cornerstone Asset Metals today to learn more about buying gold and silver as an investment.

» Read our article: Why Silver is Going Up Today?

» Read our article: Why Gold is Going Up Today?

Past performance is not an indication of future potential values.