Gold…Irr​ational Exuberance​!!!

The television or radio nowadays is being bombarded with advertisements to “buy gold.” Firms selling gold now have a huge cash influx and are using it to attract more buying creative marketing. You will hear that it’s the “new gold rush” and get in now because “prices will continue to go to through the roof.”

The truth is, that’s not a good idea. What we are seeing are all of the traditional tell-tale signs of a bubble. If you want to buy some actual gold and keep in your safe to feel more secure about having a so called “hedge” fine, however beware to call it “prudent investing”. I knew an old carnival barker (think Mr. Haney from Green Acres) when I was a boy who once said “the most believable stories are those with the skin of truth stuffed with lies”

People do not buy GOLD because they LIKE IT. They buy GOLD because they DON’T LIKE something else. A reasonable expectation is that the gold bubble will burst. And it will burst hard!

Couple this with all of the very creative emotion filled hyperactive advertising, and you get the extreme increases in the price of gold that we are seeing today. And when the gold bubble bursts, you will see extreme decreases in its price.

Take a look at this four minute video that aired last week on the Fox Business Channel.

About Paul Nichols

Paul is the founder of Financial Abundance, a Registered Investor Advisory firm and EDI, an Estate Planning Firm with offices in State College and Lewisburg. He has been working with individuals, families and businesses for over twenty years, including many Fortune 500 companies. He has educated tens of thousands of people through seminars, workshops and various international speaking engagements where he shared the stage with many notable individuals such as Ronald Reagan, Robert Kiyosaki (author of Rich Dad, Poor Dad), Mike Ditka, General Schwarzkopf, and Newt Gingrich to name a few.

In 2000, after many years of traveling to consult companies and individuals, Paul decided to relocate from Colorado to State College, PA (his wife’s hometown) to develop a local advisory firm.

Paul operates under the core belief that education plus understanding leads to clarity and confidence; resulting in peace of mind. He is a proud father of three and devoted husband of 20 plus years.

Some of Paul’s accomplishments:
Regular contributor to the Centre Daily Times, via the “It’s Your Money” blog
Featured in the movie Navigating the Fog of Investing
Regular contributor to Town & Gown as the publications Investor Coach
Host of the weekly iTunes Podcast, It’s Your Money
Member of the Western PA Better Business Bureau
Member of the Centre County Chamber of Business and Industry