Investment Commercials-Talking Out Both Sides of Their Face

Investment Commercials-Talking Out Both Sides of Their Face

by: Brendan Magee

I'm watching the Phillies game this afternoon (Yeah, we can't stay on that Villanova high forever) and a commercial comes on the air telling people they should invest in gold. The main reasons that were mentioned as to why you should invest in gold were:

1. We are already in a bear market
2. You can't afford to gamble with your retirement money.

Sounds o.k., but lets ask a few questions:

1. If gold is such a great investment for when we are in a bear market, why didn't they put the commercial on before we were actually in a bear market? Why couldn't they have told me in advance when the bear market was going to start? Then I could have really taken advantage of their information. and moved my money to gold before the bear market took effect.

2. I'm not gambling with gold? There's no risk in loading up on gold? The price of gold is never going to fluctuate in the future?

Plain and simple the people pitching gold or any other product have no idea what the future will bring and if they do, they are not going to tell you or me.

Gold and any other security that is not guaranteed in value will fluctuate. By loading up on more of it, I am less diversified, not more. Hence, I am taking on more risk.

My advice, mute the commercials, go and get yourself something to eat or drink, and do not invest based on something you see on television. Go Phils!


Brendan Magee is the founder and president of Inevitable Wealth Coaching with questions or comments e-mail brendan@coachgee.com or call 610-446-4322.