The Commodity that Rises when the Market Crashes: Gold

Upon checking the PSE this afternoon, I saw that it went down to around 7,400-sh. The market is bearish for now. Will it keep falling to a certain support? Or will it bounce sooner? Stock Markets are volatile. Such is my observation.

Robert Brokamp of Time magazine wrote Why you should start preparing for the next market crash: He asks: “What’s Next In This Series?: 1929, 2000, 2007…” A Forbes writer, Simon Moore, also does not deny this possibility. He writes:

Most importantly, you need to take action before a stock market crash, not after it. Since stock market crashes are not predictable, you need to take action today. If you knew your income was going to fall 10%, that would get your attention and you’d probably spend some time on a job search, or at least financial budgeting. The truth is that your investments (which are hopefully larger than your annual salary, if you’re out of your 20s) will likely rise over time, but  if you invest in stocks they are going to fall at some point in the future. No one will tell you in advance. The time to prepare is now.

Of course when the Markets are down, the next question: Is there an alternative for your investment? Although I don’t preach on this now, but I recently developed this conviction to exit the Stock Market. It is not “sound money.” I just realized it does not agree with my convictions on Biblical faith. I just filed my withdrawal from my broker. This is not to discourage, but I’m sharing my convictions and giving you some moments to consider. Nevertheless, I found a better investment avenue: Gold.

But before I tackle about the idea in Gold Investments, let me share some preliminary actions to consider:

First, I’d like to emphasize and agree with the majority of financial advocates to keep a substantial amount of savings for your self, family, and emergency situations first. This is crucial. This is a good, Godly and Biblical ethic- to save. Nothing is better than to secure this. Even though tempted by the rising paper gains, don’t put all your savings to investments. Practice self-control.

Second, the best non-material things we are to invest in are our relationships with people and with the Lord. “What shall it profit a man if he shall gain the whole world but lose his own soul.?” And what shall be our profit if we gain all material goods yet lost our love ones and our good relationships with our neighbors. Of course, we can subdue material blessings to serve people’s needs, except that we totally decline and deny material blessings because they are “evil.”

So why Gold?

Let me put in very short ways for now:

1. Gold never goes depreciates. Yes, its value goes down when the other instrument vehicles such as stock market are mostly up and you may lose some value, but Gold never goes bankrupt or crashes. It is still one of the best havens of value. It is a God-given element to equate power and wealth on earthly terms.

2. Gold goes up when a crisis occurs. The question people post is: Will there be a next recession. While other people do not ask Will there be but When will it be?. It is only a matter of time that the bar graphs of the world economies will go back to what they call as “Default” or often coined as “The Great Default.”

What’s my point?

My point in this article is to help Filipinos and other people understand that there are other considerable allocations of investments that worth our emotions (will save us from a lot of heart attacks because of the red digits). Yes, we rejoice in the fast return and often high-yielding growths of stocks, but although the other alternatives need more patience and work, they cause fewer heartaches when managed correctly, and yield long-term and sustainable fruits.

1. Real Estates- This is still the most ancient yet the surest way to allocate your money. Yes these are less liquid, could take years to process documents, yet will give you the peace of mind that you are operating on “sound money” through sound investments.

2. Education- One of the best investments to own. Skills, learning, knowledge- these can never crash (except you fall into an accident). Knowledge and skills are the best weapons to sustain you even in the midst of a crisis-stricken world. I can confidently say this because knowledge and skills are equated with God in the Bible. “The fear of the Lord is the beginning of knowledge.” “This is eternal life that they may know you.” “My people are destroyed because of lack of knowledge.” In other words, knowledge of the truth is the savior of you and the rest of mankind. Wisdom, in Hebrew, is skill. Wisdom is equated with God in the book of proverbs. So having godly wisdom and skill are still the surest investments you could pour your life on.

3. Gold- I had some research about buying Gold in the Philippines through the internet and for now I cannot see any avenue where to see a trustworthy seller of Gold. Not the gold for jewelry, but the gold for investments. In New York, people have this option, or shall I say in the whole US. Also in the rest of other cities, people have the option to purchase gold such as Zurich, Tokyo and Singapore.

Gold goes up when markets go down because of the law of supply and demand. More people will flee to gold for safe refuge, and that’s why its price goes up. Will this happen soon? It might be- if the markets will repeat itself just like in 2002 and 2008.

In my research, I found two reliable Gold Trading brokers. Anyone can consider creating an account through online. Both require verification by postal mail. Deposits to overseas banks are also required to fund your account. I have tried creating accounts already but haven’t yet sent documents through postal mail to verify my identity. I emailed to BPI and they said that it will cost 600 pesos to deposit in the bank account of one of these gold brokers. Both of these Gold Trading sites are located in UK (or at least their core leadership). Read more about Gold investments in their website:

BullionVault

Gold Money

Please take note that these are digital trading on Gold value, rather than a market for purchasing and selling actual material Gold. My cautionary advice to every Filipino and every nationality is this: take appropriate risks. Consider and study well before entering into vulnerable situations. Mitigate risk by equipping oneself with diligent study and research. We will save ourselves and others with much trouble if we do. Take the time to read the reviews in those sites Read their whitepapers, blogs, thoughts, etc before entering. Then share your discoveries to me. We could work on developing this awareness and literacy to Filipinos as well.

I hope these ideas will help you consider more relevant and diverse investments towards your financial and spiritual freedom. It is my passion and mission to share ideas that liberate people, and the ultimate resource I use is none other than the Bible.

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