Why are the prices of gold and silver falling?

gold-silver-bars

BY ROBERT KIYOSAKI

While in Africa last week, I was asked, “Why are the prices of gold and silver falling?” 

My answer was, “Because more people are selling than buying.”

Years ago, my rich dad said, “Most investors want to know the underlying reasons why prices are going up or going down. So they look in the newspapers or call a friend, and find a reason that makes them happy.”

Returning from Africa, I went looking for answers that made me happy. There was an article in the Wall Street Journal about the people of India not buying gold and that was the reason for the price of gold coming down. In another article, I read about the European crisis, more specifically the demise of Greece, as the reason for the prices of gold, silver, and oil coming down. Less people are buying and more people are selling.

Most people chase the ups and downs of the markets, investing for capital gains. In real estate, they are called “flippers” and in the stock market they are called “traders.” The most important question to ask is, “Why buy?” This question makes the most sense to me.

I have been buying gold since 1972. I began while flying in Vietnam. I am still a buyer of gold and silver, but not at the current prices. I am happy when prices come down because low prices give me a reason to buy. The same is true in real estate. When real estate prices were going up, idiots were buying and flipping houses they, themselves, could not afford to live in. When the market crashed, millions were crushed. Now is the time to buy, but it hard for most to buy when they are sitting on existing bad home-owner debt.

Most of you following my COR blogs know I buy gold, silver, and oil simply because I do not trust our government or corporate leaders. If I trusted the President, Congress, the Fed, or big banks, I would be holding dollars; but I don’t. With everyone printing money, savers of money are the biggest losers.

This is my reason for buying gold, silver, and oil when the price is right. What is your reason? Don’t buy or sell anything simply because you are following the herd. Do your own research, find your own reason, and do what is best for you. Everyone else is. That is why so many people are selling gold, silver, and oil, and why prices are coming down. They are simply doing what they think is best for them.

If the herd panics and begins selling in mass, I will once again begin buying, even more gold, silver, and oil.

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