Gold pushed higher today adding another $6 to the price and finishing at $1281.12. Silver finished 9¢ higher at $17.00. Last week we talked about the metals running in place. Now we are starting to get a little forward movement. With everything that has occurred in the financial markets since election night, it is easy to overlook the fact that gold is still up 11% on the year and silver, though trailing, has managed to gain 7%. By way of comparison, the S&P 500, which has been the beneficiary of a tremendous amount of positive publicity, is up a little over 15% thus far this year.
Jon Hussman (Hussman Strategic Advisors), who has a habit of calling major market turns, had some interesting advice for his clients recently. “For now, it’s enough to refrain from capitulating at record valuations,” he writes. “There’s no need to take a hard-negative outlook here, but don’t allow impatience, fear of missing out, or the illusion of permanently rising stock prices to entice you into entrusting your financial future to the single most overvalued market extreme in history.” I interpret that message as a call to diversify. Trees, as Richard Russell used to say, do not grow to the sky.
Quote of the Day
“Madness is rare in individuals – but in groups, parties, nations, and ages it is the rule.” – Friedrich Nietzsche
You decide that the time has come to include gold in your investment portfolio. You contact your investment advisor and he or she puts you into a gold ETF. Did you do the right thing? In this article posted at USAGOLD’s Gilded Opinion page, Olivier Garret tells why gold coins and bullion owned outright are the better option. Be aware: For the true asset preservation investor, hidden dangers lurk in the gold and silver ETFs.