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GoldCore's picture

The uncertain political climate in the UK and the United States is  weighing on the dollar and sterling. Concerns over U.S. political turmoil and the complete mess that is the current U.S. political situation will lead to continuing demand for safe haven gold.

Monetary Metals's picture

There is a often-promoted plan to grow your wealth based on the claim the dollar will collapse:

Phase 1: You gotta buy gold.
Phase 2: Price goes up
Phase 3: Profit!

This is a bit reminiscent of the underpants business model on South Park. South Park of course showed phase 2 as “???” but the analogy holds.

The story switches midway from the-dollar-will-collapse to gold-will-go-up. In fact, these are the same thing. It is important to realize because a higher price of gold does not make you richer. Aside from being wrong as a matter of fact, it is an example of dollar thinking. It comes from the belief that gold is to be sold. That is not historically how people thought about it. Gold is money and those who have it should seek to earn a return on it, not sell it.