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There is such a “fear of gold” amongst most people that it must be due to statist
indoctrination and propaganda because it makes no rational sense to have such a fear of such a time tested and true store of wealth. After all, we are talking about time tested and true money – the only money that has lasted for thousands of years and is still fully accepted worldwide as a store of wealth….What would you rather hold “for eternity” gold [or] US dollars [which are nothing more than] a paper debt obligation of a bankrupt nation state? Words: 450
So says Jeff Berwick (www.dollarvigilante.com) in edited excerpts from the original article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has further edited below for length and clarity – see Editor’s Note at the bottom of the page. (This paragraph must be included in any article re-posting to avoid copyright infringement.)
Berwick goes on to say, in part:
…With gold over $1,700, it is nearly impossible to get anyone from the general public to buy gold. It’s gone too high, they cry! CNBC says it was a bubble, they repeat like trained seals. It’s gone from near $300 to nearly $2,000 in the last decade. Surely that is a bubble and if it hasn’t already popped it soon will, right? No. That’s not right. This is the problem with watching the value of anything in terms of constantly depreciating US Federal Reserve Notes.
In the following chart, when looking at the price of gold in nominal dollar terms, it looks like an insane rocket ride of epic proportions but, when adjusted by the U.S. Government’s own, heavily massaged inflation statistic (the Consumer Price Index, or CPI), the price of gold has just finally reached nearly the same level it was at in 1980 and looks far less spectacular.
PORTFOLIO ALLOCATIONS
What percentage of gold bullion should people hold as a percentage of their portfolio? While I would have no problem with 100%, we actually recommend…holding 30% of one’s portfolio in bullion – both gold and silver. We also recommend holding [an additional] 20% in gold mining juniors and 15% in gold mining major stocks amongst other things [for a total allotment in precious metals of 65%]. [Why?] That’s because we are expecting all the monetary printing going on with abandon in the western world to foment a true bubble, not only in the price of gold, but even moreso in the price of the mining shares, especially the juniors. We are expecting a mania for the ages in these stocks.
How will we know when to sell? When I am asked what percentage of their portfolio should be held in gold bullion and I say 100% – and no one laughs.
*http://goldsilver.com/new/the-fear-of-gold/
[Editor’s Note: The above article has been has edited ([ ]), abridged (…) and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.]
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