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Why direct Commodity Investing Is Doomed To Fail

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direct commodity investingOne of Rush Limbaugh’s favorite sayings is, “Follow the money.” From our life experience, there is not much truer statement to be found anywhere. Practically any action or event throughout the entirety of history occurred in the pursuit of money, sex, or power. When it comes down to it, we humans are quite simple creatures, easily amused (television), easily satiated (fast food), and easily swayed by bombast (late night infomercials). This is about commodity investing, right? Since it says so right in the title?

We’re getting to the point. Remain calm. The question is, why does it appear that everyone and their second cousin is a spasmodic huckster for direct commodity investing, especially gold? Far be it from us at Holistic Survival to point out the blatantly obvious but a gold broker’s commissions are sky high. Of course they’re going to recommend you buy it but does that mean it automatically is the alpha and omega of asset choices?

Obviously, the answer to that question is a resounding, “No!” The main problem we see with both the stock market and direct commodity investing is that as much as 25% of the trading volume is driven by nothing more complicated than pure speculation, which operates on the rock solid principle that anything is a good investment if you can convince a sucker to buy it from you at a higher price point. And this is not to say that gold in and of itself is a lousy investment. It’s better than a stock certificate but if direct commodity investing is good, we’d like to introduce you to Packaged Commodity Investing, which is even better.

The difference is that gold as an investment is simply something to store in a safe in a bank somewhere, offering a modicum of solace that you won’t immediately descend into pauperism when dollar disappears as a viable currency. The real value in life is found investing in stuff people use. How does one go about using a commodity? The best way example we can think of is when you buy a house, which is nothing more than a collection of basic commodities arranged into a structure which offers shelter to humans, a universal need. It doesn’t get much more useful than that.

The Holistic Survival Team


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