This is a real worry, from Trevor Sykes:
Despite all this expertise, gold is looking strong.
…any well-constructed portfolio should include some exposure to gold, either through equities or the physical metal.
It is easy to buy and hold physical gold. A search on Google will reveal several bullion companies offering the metal. Investors can even buy it online and have it stored by the bullion company for a small fee.
…No currency in the world is now formally backed by gold. The paper money printed by governments is merely legal tender for doing deals.
In recent years this has induced governments to print too much paper money, thereby devaluing their currencies against gold, which has been recognised by humanity as a store of value for 5000 years.
It used to be argued that gold was a poor investment because it yielded no interest. But with bond yields in Western countries now at record lows, and even negative, that argument has lost much force.
… it a sensible strategy to buy gold on the dips.
The Sykesnado’s recent performance in banks and miners makes me very wary of sharing a similar platform though he can’t wrong all of the time! Gold correction imminent?
I prefer miners to physical given the leverage and the liquidity.
