Going For Gold

by Olivier on May 9, 2009

This video nails it. As you know I’m a trader but I do advocate holding physical gold and silver for insurance purposes. The video below covers that subject. Nobody said you are supposed to put all of your money into gold and silver but put a portion of it into those precious metals to protect yourself against all kinds of risk.

Tonight I am going to quote from Martin Schwartz: ‘Pit Bull – Lessons From Wall Street’s Champion Day Trader’.

I highly recommend this book. There are lots of valuable insights and lessons to be learned. I read it many years ago and the part which struck me most at that time was the fact that although Martin Schwartz is a day trader he was well aware of risk. Especially systemic risk. The book describes how during the market crash in 1987 he ‘went for the gold’:

The sweat began to drip from my brow as I scribbled my safe-deposit box number onto the bank’s card. I handed it to the security guard and we went into the vault. He unlocked my box with his key and left. I unlocked the box with my key. I yanked out the box and nearly fell to the floor. I’d forgotten how heavy forty pounds was. I started packing the plastic tubes of Krugerrands into my briefcase. There were a bunch of them, at least $250,000 worth. Maybe more; with the world falling apart, the price of gold probably was soaring. […] I started shuffling down 65th Street, the briefcase pulling me over to one side like Quasimodo. By the time I reached Rockefeller’s house, my shirt was plastered to my body and I was gasping for breath. The leaders of the club might be in there screwing everybody else, but they weren’t going to screw me. I was the chosen one, I was fulfilling my responsibility, I was taking care of my family.

It turns out he was wrong. The world didn’t go down and the system didn’t blow up. But that is not the point. The question you need to ask yourself is: How much did it cost him to protect himself? Did he lose anything in order to do so? The answer is obvious. It was painful to get the gold and he probably ‘lost’ one day in his life getting that gold. I am not predicting anything. All I am saying is: That’s a very small price to pay in order to protect yourself and your family.

I have recently posted an excerpt from Justin Mamis: ‘When To Sell’ that you might want to read. Check my book section for more quotes and excerpts and free books to download.

Gold and silver bullion coins are the ultimate protection.

Have a great weekend!

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