Guiding consumers since 2009

Putting the bullion before the bear market

By Staff Writer

Gold is still soaring, after record highs, it is hitting record highs again. Gold has been a unit of value, a currency, for longer than the economic systems that we have now. The same economic systems that created the global credit crunch. Fiat or paper money is a loose system whereby the actual value of the paper issued has nothing to really do with the face value of that paper. Dodgy investment strategies lead to massive risks being taken and the outcome was the economic crash. Gold is a metal and whilst the sale value may outstrip the metal value gold is still a safer bet than paper based investments. So how can you get some gold?

 

 

A diversified investment strategy is key to managing your risk. The subprime crash was caused by diversifying through asset classes rather than across asset classes. In short lumping different mortgages together is through the class and does not spread risk. Likewise with your investment strategies, to quote the cliché, don't put all your eggs in one basket. A judicious mix of types of asset including gold is safer than putting all your money into one thing. Gold will continue to be a fall back for as long as the global economic uncertainty continues.

There has been very little in the way of legislation to curb the excesses of the fiat system and it is entirely possible the entire cycle of risky investing followed by a crash can occur again. In South Africa we do have some legislation to protect us in the form of the National Credit Act, which enabled us to partially decouple from the global economy, but we are still linked in and prey to the vagaries of outside influences of which we have no control over. It may be a case of buying high now, but gold is expected to remain strong, and the global economic travails are not going to disappear tomorrow.

Recent Articles

Featured It’s possible to change your marriage regime

Many people wed before they sign an antenuptial contract (ANC). This is especially practiced by people in customary marriages and those not clued up about the ANC. The law says if there’s no ANC before the wedding takes place, the marriage will automatically be in Community of Property. 

Keep this in mind when taking out new financial products

Adding a product to your personal finance portfolio, such as insurance or an investment, is a big decision. We found out what you should keep in mind before taking out a new product, how you can assess the products you already have, and how you can generally improve your financial position.

Are you in debt denial?

With debt levels increasing at 13% more than income levels, South Africans are more debt-stressed now than arguably ever before. This is iterated by the National Credit Regulator’s (NCR) report that nearly half of credit-active consumers in South Africa have damaged credit records. However, only a few seek the necessary help.

Why should you invest in a mutual bank?

Often when people think about banking, they always think about commercial banks. Mutual banks hardly come to mind, but these banks offer investment opportunities that are often overlooked.

 

Deals

Blowfish Half-price Sushi Special

Price: Available on request
When: Wednesdays and Thursdays
Where: Cape Town

Da Vinci’s On Kloof Lunch Specials from R60

Price: From R60
When: Daily
Where: Cape Town

Stonehill River Lodge Stay 3 pay 2 Special

Price: Available on request
When: Until 19 March 2020
Where: Swellendam (Western Cape)