Gold

Have you ever wondered why some of the most elite investors hold precious metals - especially gold - as a central part of their portfolios? This infographic illustrates 4 famous money managers who made bets on precious metals for different reasons, and what we can learn from each of them.

Every single ounce of gold of the 3,000 tonnes mined in the world each year is sold. The gold doesn’t need to be marketed, it’s been pre-sold, all of it.

Compare and save! Who is the most reputable, cheapest and most reliable precious metals dealer to buy your physical gold and silver from? When it comes to direct comparisons only a few rise to the top of the list. Here they are.

The ratio of total stock market capitalization to GDP, a favored indicator of the “Oracle of Omaha”, has historically proven to be a very useful and reliable harbinger of longer-term future returns in equities in the U.S. - and it suggests annualized total returns of -1.27% on the S&P over the next 10 years. Lower equity returns over a 10-year period have been clearly consistent with higher returns for gold. In fact, every 1% drop in annualized total returns on the S&P 500 implies a 1.5% increase in returns on gold. That would be consistent with returns for gold of around 20.6% on average per year.

Gold is currently trading near a critical level, from where a massive move up or down is imminent. One of the measures that illustrate we are a close to a big move, is the following resistance line on the gold chart.

Central bankers are managing paper currencies for the benefit of the people, not the financial and political elite. Consequently consumer prices are stable and there is no reason to own gold as protection from currency devaluations.

Given the negative real rates, a falling dollar, and heightened correlation between stock and bonds, gold should be an essential part of every investor’s portfolio today.

Gold sold off hard on the news that a moderate won the first round of elections in France. Good, because if gold breaks support and goes down to test its uptrend THAT would be a heck of a buying opportunity.

The SPDR Gold Trust (NYSE: GLD) added 11.84 metric tons of gold on April 19. That’s the most since Sept. 6, 2016, and it brought the GLD’s holding to 860.76 metric tons. That’s 27,674,076 troy ounces. What’s driving this? Fear.

Is it time to back up the truck on gold and silver miners? The short answer: Not yet, We’re getting close, no doubt about it, but we still don’t have the all-clear signal. That’s why, all told, the name of the game right now for miners is caution.