Gold profits or world peace?

Early last week, a friend of mine asked a question along these lines:

“If pretty much all of the world’s financial problems and political fighting came to a positive resolution, and peace and prosperity reigned across the planet, do you think there is a risk that the price of gold could collapse?”

I answered that a significant part of my livelihood and net worth depended upon precious metals remaining precious. However, I then told him that in such a scenario, the price of gold could fall sharply or lose almost all of its value beyond usage for industrial purposes.

But I then added that if the entire world were to enjoy peace and prosperity, and the result of that led to a huge drop in the price of gold, hurting my livelihood and net worth, I would gladly accept such a trade.

Would you?

Unfortunately, humanity has never experienced worldwide peace and prosperity, however much we wish for it. It is for that reason that prudent people should consider holding physical precious metals as part of their net worth.

Patrick A. Heller was the American Numismatic Association 2017 Exemplary Service and 2012 Harry Forman Numismatic Dealer of the Year Award winner. He was also honored by the Numismatic Literary Guild in 2017 and 2016 for the Best Dealer-Published Magazine/Newspaper and for Best Radio Report. He is the communications officer of Liberty Coin Service in Lansing, Mich., and writes “Liberty’s Outlook,” a monthly newsletter on rare coins and precious metals subjects. Past newsletter issues can be viewed at http://www.libertycoinservice.com. Some of his radio commentaries titled “Things You ‘Know’ That Just Aren’t So, And Important News You Need To Know” can be heard at 8:45 a.m. Wednesday and Friday mornings on 1320-AM WILS in Lansing (which streams live and becomes part of the audio and text archives posted at http://www.1320wils.com).