Gold profits or world peace?
April 19, 2018
Early last week, a friend of mine asked a question along these lines:
“If pretty much all of the world’s financial problems and political fighting came to a positive resolution, and peace and prosperity reigned across the planet, do you think there is a risk that the price of gold could collapse?”
I answered that a significant part of my livelihood and net worth depended upon precious metals remaining precious. However, I then told him that in such a scenario, the price of gold could fall sharply or lose almost all of its value beyond usage for industrial purposes.
But I then added that if the entire world were to enjoy peace and prosperity, and the result of that led to a huge drop in the price of gold, hurting my livelihood and net worth, I would gladly accept such a trade.
Unfortunately, humanity has never experienced worldwide peace and prosperity, however much we wish for it. It is for that reason that prudent people should consider holding physical precious metals as part of their net worth.