Be prepared for all possibilities. The case for gold.
“In such a case, central banks, with interest rates close to rock bottom, would most likely embark on a broadly – based monetisation policy to keep the system from crashing down. The point is therefore: Even in view of the currently persist ing boom, the savvy investor should not ignore the risk of the boom turning into bust at one point. One way of dealing with such a risk scenario is by adding gold to the portfolio.”
USAGOLD note: “Men, it has been well said,” says Charles Mackay in Extraordinary Popular Delusions and the Madness of Crowds, “think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, one by one.” At present we are experiencing a modern-day version of that process at USAGOLD. We do not have a rush to buy gold at the moment. Instead, we are experiencing a steady stream of new clientele interested in hedging the extremes Polleit outlines in the report linked above. In addition, clients who bought early in gold’s secular bull market (the early 2000s) and then later sold at higher prices (2010-2015) are now returning to the market as buyers. Usually they cite a combination of attractive pricing and the presence of various underlying risks in the financial system as driving that decision
Repost from 4-15-2019
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