Nick Barisheff has posted an article on some gold myths and why it is important to have gold bullion as part of your portfolio to be truly diversified [and, might I add, prepared for the forthcoming downturn in the world economies].
“Gold will continue to increase in purchasing power as long as its inflation rate (mine supply) is lower than the increase in the money supply. Mine supply increases by about 1.5% annually, but has recently started to decline because new sources are becoming more and more difficult to find. In sharp contrast to gold “inflation,” most central banks are now increasing money supply at double-digit rates.”
Chicken Smith View:
Gold bullion is not your common equity share. It is a tangible asset that will still be there after the market and world currencies crash. We’ve had a long bull ride for some time now, but nothing lasts forever. We have reached the peak in some markets and are about to reach it in all the rest. When the bottom is pulled from under us, gold will become the default currency… because it’s real.