Chart usGOLD   Chart usSILVER  
 
Food for thought
You know you’re in a bear market when people are losing money but feeling pretty good about it
Wall Street Adage  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1216.000.90
Silver 17.81-0.01
Platinum 1333.251.50
Palladium 810.002.25
WORLD MARKETS
DOWJONES 1728013
NASDAQ 4580-14
NIKKEI 16321254
ASX 543718
CAC 40 4461-3
DAX 97991
HUI 208-4
XAU 89-2
CURRENCIES (€)
AUS $ 1.4369
CAN $ 1.4062
US $ 1.2829
GBP (£) 0.7873
Sw Fr 1.2068
YEN 139.8300
CURRENCIES ($)
AUS $ 1.1203
CAN $ 1.0945
Euro 0.7795
GBP (£) 0.6141
Sw Fr 0.9400
YEN 108.9100
RATIOS & INDEXES
Gold / Silver68.28
Gold / Oil13.15
Dowjones / Gold14.21
COMMODITIES
Copper 3.090.00
WTI Oil 92.45-0.62
Nat. Gas 3.84-0.07
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
In the same category
Time to Accumulate Gold and Silver
Published : March 09th, 2012
621 words - Reading time : 1 - 2 minutes
( 5 votes, 4.6/5 ) , 2 commentaries Print article
 
    Comments    
Tweet

 

 

 

 

Do you own enough gold and silver for what lies ahead?

 

If 10% of your total investable assets (i.e., excluding equity in your primary residence) aren't held in various forms of gold and silver, we at Casey Research think your portfolio is at risk.

 

After speaking at the Cambridge House conference last month and talking with many attendees, I came away convinced that most investors fall into one of two categories: those that hold an abundance of gold and silver (which tends to be physical forms only), and those with little or none. While both groups need to diversify, I'm a little more concerned about the second group. Here's why.

 

Regardless of what you think will happen over the remainder of this decade, one thing seems virtually certain: the value of paper money will be affected, perhaps dramatically. Even if the economy slips into deflation, the deflation wouldn't last long. A panicked Fed would print to the max and set off a wild rise in prices. This is why we're convinced currency dilution will not only continue but accelerate.

 

Let's take a look at what's happened so far with the value of our currency vs. gold, after accounting for the loss in purchasing power.

 

 

 


 

Both the US and Canadian dollar, after adjusting for their respective CPIs, have lost about a quarter of their purchasing power just since 2000. Concurrently, gold has increased dramatically in buying power, far outpacing the effects of inflation.

 

This is the core reason why I'm convinced we should hold our savings in gold and silver instead of dollars. Let's take a brief look at how gold and gold stocks might perform if the economy takes a turn for the worse…

 

What If We Enter a Recession or Depression?

 

Mayan prophecies aside, many of our panelists last month, including most of the senior Casey staff, believe economic, monetary, and fiscal pressures could come to a head this year. The massive build-up of global debt, continued reckless deficit spending, and the lack of sound political leadership to reverse either trend point to a potentially ugly tipping point. What happens to our investments if we enter another recession or – gulp – a depression?

 

Here's an updated snapshot of the gold price during each recession since 1955.

 

 

 


 

 

 

Clearly, one should not assume that gold will perform poorly during a recession. Even in the crash of 2008, gold still ended the year with a 5% gain. And with the amount of currency dilution we've undergone since that time, it seems more likely gold will rise in any economic contraction than fall. Indeed, if the response of government to a recession is more money printing, precious metals will be a critical asset to have in your possession.

 

Even if the gold price ends up flat or down this year, the CPI won't. Gold's enduring purchasing power is why we hold the metal.

 

How about gold stocks?

 

 

 


 

 

 

In spite of the debilitating 1970s that suffered from stagflation, price controls, three recessions, and the Vietnam war, gold producers rose over 600% while the S&P was basically flat. And that includes a roughly 65% fire-sale correction, much like we saw in 2008. To be clear, gold and silver stocks won't be immune to selloffs if a recession or worse temporarily clobbers our industry. But in the end, we're convinced they will prevail.

 

Don't lose patience with, or confidence in, your gold holdings. What happens to the price over any short period of time is only one chapter in the book of this bull market, and we think you'll be happy by the time that last chapter is written.

 

 

 

[For more information on how to invest in gold, download our free report: 2012 Gold Investor's Guide.]

 

 

 

 

Data and Statistics for these countries : Vietnam | All
Gold and Silver Prices for these countries : Vietnam | All
Tweet
Rate :Average note :4.6 (5 votes)View Top rated
Previous article by
Jeff Clark
All articles by
Jeff Clark
Next article by
Jeff Clark
Receive by mail the latest articles by this author  
Latest comment posted for this article
IT IS IMPOSSIBLE TO OWN TOO MUCH GOLD, EVEN IN COMPARITIVE WEIGHTING TO THE REST OF YOUR ASSETS. Read more
S W. - 3/11/2012 at 9:13 AM GMT
Rating :  3  3
TOP ARTICLES
MOST READ
TOP RATED
MOST COMMENTED
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis

Jeff Clark

Jeff Clark is the editor of BIG GOLD, a Casey Research publication focused on the safest ways to profit from the current bull market in gold.
Jeff Clark ArchiveWebsite
Most recent articles by Jeff Clark
9/16/2014
9/11/2014
8/14/2014
8/5/2014
7/22/2014
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
 
       
IT IS IMPOSSIBLE TO OWN TOO MUCH GOLD, EVEN IN COMPARITIVE WEIGHTING TO THE REST OF YOUR ASSETS.
Rate :   3  3Rating :   0
EmailPermalink
If you can't hold it in your hands it isn't really yours! Time to hold Food, water, Guns, ammo,Gold and Silver!
Rate :   5  4Rating :   1
EmailPermalink
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer