Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Notre Dame Fire: Lessons for Gold Investors

Commodities / Gold & Silver 2019 Apr 18, 2019 - 07:47 PM GMT

By: Arkadiusz_Sieron

Commodities

The Monday’s fire of Notre Dame Cathedral shocked the world. Since then, the French, the Catholics, and the architecture and art lovers hadn’t been talking about anything else. The precious metals community was less disturbed – even though it turns out that gold investors can actually learn a lot from the Notre Dame’s fire.

We have visited Paris for the first time only a month ago. Maybe this is why the images of Notre Dame being consumed by fire have aroused our emotions, even though we are not connoisseurs of architecture. Luckily, the cathedral has survived and the scale of damages is not as grave as it first seemed.


Of course, we do not want to talk about the causes behind the fire or about the subtlety of Notre Dame’s restoration, but to point out one powerful photography. You may have already seen it elsewhere (see below). The image shows a Notre Dame’s golden altar cross seen glowing among the ashes inside the fire-ravaged cathedral.

The fact that golden cross remained untouched for some people is a clear sign of divine protection of Our Lady Blessed Virgin Mary. Without prejudging the matter, let’s note the unique nature of the yellow metal, which helped the golden cross to survive intact even though the wooden roof burned down. You see, wood burns at around 600°C, while the melting point of gold is about 1064°C. The flames could not harm gold.

This is why gold was chosen as money. On the one hand, it is practically indestructible, since it resists attacks by acids or corrosion and most other chemical reactions. It is unaffected by air, heat, moisture and most solvents, being one of the least reactive chemical elements. On the other hand, gold’s melting point is low enough to be easily melted down into bars. For comparison, platinum has a melting point at about 1768, so early societies were unable to conveniently shape it into uniform units.

And this is also why gold is a portfolio diversifier. During a financial catastrophe, many assets turn into ashes, while gold remains untouched and glows amongst them. The Great Recession might be the best example. The stock prices plummeted in 2008, but gold gained almost 3 percent that year. This is the first lesson of the Notre Dame fire for the gold market: wealth is fragile, so it’s good to have insurance. The cathedral was not insured, but it will get help from the State and French billionaires. But you, you have to count on yourself – and your shiny friend.

The second lesson is that we have to be humble. The Notre Dame, at 856 years old, seemed to be indestructible. After all, it survived centuries of turmoil, including the French Revolution and both world wars. But then it was almost completely burned. The irony is that the fire was probably caused by ongoing renovations. It shows that you should always challenge your assumptions and be prepared for the worst scenario. Gold helps considerably in this aspect.

However, being prepared for the worst scenario does not equal being a doomsayer who expects the worst all the time. Actually, when you are really prepared for the catastrophe, you do not have to think about it all the time – you can focus on other things. This is why we suggest investors to divide their precious metals portfolio into three main parts: insurance, investment and trading.

So, we have to be humble also when it comes to investing in gold. Yes, gold is practically indestructible, and it shines during financial crises when all other assets turn into ashes. Its price fluctuations can be (and are) quite volatile. It’s not a one-way elevator. As history shows, gold may be traded sideways or even trapped into bear markets for years. Translating technical insights into strong trading decisions, is the reason why we provide you with daily Gold and Silver Alerts. In order to take advantage of the intraday moves, we have recently launched Day Trading Signals. They are still freely available right now. If there’s one thing to check straight away, it’s their performance page.

Healthy societies accumulate and preserve capital. The Notre Dame Cathedral is one of the greatest examples of civilization wealth. Its fire reminds us how quickly centuries of accumulated capital can be destroyed. Hence, adding some gold to portfolio as an insurance seems to be a smart idea.

Healthy societies consist of responsible people who accumulate and preserve wealth. We are proud that we can help in this civilization process. Having an insurance protects our capital, but gaining from price movements can multiply it. This capital accumulation enables humans to create wealth lasting far beyond their lifetimes – whether it will be embodied in a beautiful cathedral, in children’s education or just in the family’s financial security.

Thank you.

If you enjoyed the above analysis and would you like to know more about the link between the U.S. economy and the gold market, we invite you to read the August Market Overview report. If you're interested in the detailed price analysis and price projections with targets, we invite you to sign up for our Gold & Silver Trading Alerts . If you're not ready to subscribe at this time, we invite you to sign up for our gold newsletter and stay up-to-date with our latest free articles. It's free and you can unsubscribe anytime.

Arkadiusz Sieron

Sunshine Profits‘ Market Overview Editor

Disclaimer

All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Arkadiusz Sieron Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in