Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Stock Market FOMO Hits September CRASH Brick Wall - Dow Trend Forecast 2021 Review - 20th Sep 21
Two Huge, Overlooked Drains on Global Silver Supplies - 20th Sep 21
Gold gets hammered but Copper fails to seize the moment - 20th Sep 21
New arms race and nuclear risks could spell End to the Asian Century - 20th Sep 21
Stock Market FOMO Hits September Brick Wall - Dow Trend Forecast 2021 Review - 19th Sep 21
Dow Forecasting Neural Nets, Crossing the Rubicon With Three High Risk Chinese Tech Stocks - 18th Sep 21
If Post-1971 Monetary System Is Bad, Why Isn’t Gold Higher? - 18th Sep 21
Stock Market Shaking Off the Taper Blues - 18th Sep 21
So... This Happened! One Crypto Goes From "Little-Known" -to- "Top 10" in 6 Weeks - 18th Sep 21
Why a Financial Markets "Panic" May Be Just Around the Corner - 18th Sep 21
An Update on the End of College… and a New Way to Profit - 16th Sep 21
What Kind of Support and Services Can Your Accountant Provide? Your Main Questions Answered - 16th Sep 21
Consistent performance makes waste a good place to buy stocks - 16th Sep 21
Dow Stock Market Trend Forecasting Neural Nets Pattern Recognition - 15th Sep 21
Eurozone Impact on Gold: The ECB and the Phantom Taper - 15th Sep 21
Fed To Taper into Weakening Economy - 15th Sep 21
Gold Miners: Last of the Summer Wine - 15th Sep 21
How does product development affect a company’s market value? - 15th Sep 21
Types of Investment Property to Become Familiar with - 15th Sep 21
Is This the "Kiss of Death" for the Stocks Bull Market? - 14th Sep 21
Where Are the Stock Market Fireworks? - 14th Sep 21
Play-To-Earn Cryptocurrency Games Gain More and Is Set to Expand - 14th Sep 21
The CashFX TAP Platform - Catering to Bull Investors and Bear Investors Alike - 14th Sep 21
Why every serious investor should be focused on blockchain technology - 13th Sep 21
SPX Base Projection Reached – End of the Line? - 13th Sep 21
There are diverse ways to finance the purchase of a car - 13th Sep 21
6 Tips For Wise Investment - 13th Sep 21 - Mark_Adan
Gold Price Back Below $1,800! - 10th Sep 21
The Inflation/Deflation debate wears on… - 10th Sep 21
Silver Price seen tracking Copper prices higher - 10th Sep 21
The Pitfalls of Not Using a Solicitor for Your Divorce - 10th Sep 21
Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
This Boom-Bust Cycle in US Home Ownership Should Give Home Shoppers Pause - 9th Sep 21
Stock Market September Smackdown Coming Next? - 9th Sep 21 - Monica_Kingsley
Crazy Crypto Markets How to Buy Bitcoin, Litecoin for Half Market Price and Sell for TRIPLE! - 8th Sep 21
Sun Sea and Sand UK Holidays 2021, Scarborough in VR 180 3D! - 8th Sep 21
Bitcoin BTC Price Detailed Trend Forecast Into End 2021 - 8th Sep 21
Hyper Growth Stocks - This billionaire is now using one of our top strategies - 8th Sep 21
6 common trading mistakes to avoid at all costs - 8th Sep 21
US Dollar Upswing, S&P 500 and Nasdaq Outlook - 7th Sep 21
Dovish Assassins of the USD Index - 7th Sep 21
Weak August Payrolls: Why We Should Care - 7th Sep 21
A Mixed Stock Market - Still - 6th Sep 21
Energy Metals Build Momentum; Silver & Platinum May Follow - 6th Sep 21
What‘s Not to Love About Crypto Market Fireworks - 6th Sep 21
Surging US Home Prices and Gold – What’s the Link? - 6th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold and Silver, a Pair of Aces for a Winning Hand!

Commodities / Gold and Silver 2010 Aug 16, 2010 - 01:23 AM GMT

By: Lorimer_Wilson

Commodities Lachlan Rattray writes: “Every portfolio should have a 10% core holding of gold and silver as emergency money” was the simple and timeless message in Glen O. Kirsch conveyed 19 years ago in an article entitled: “What’s in Your Core Holdings?” and such a message is even more appropriate today given the unsettling fiscal, economic and investment environment.


Kirsch went on to say that such “money” would be principally for protection, not profit, and function as insurance against a catastrophe, i.e. as your bridge across any social, political and economic abyss. It would be your ace in the hole that you hoped you would never have to use.

H.C. Wainwright & Co. has gone one step further providing research that indicates that every portfolio should have a core holding of 15% gold to further offset the ravages of future inflation. (Editor’s note: Hyperlink 1 below provides details of the research and its conclusions.)

Harry Schultz is one of those who think a major catastrophe is looming on the horizon. He predicts that gold will reach a parabolic top of $6,000 per ounce. He currently recommends an asset allocation of: 30-40% government notes, bills and/or bonds; 10-15% commodities; 8-10% stocks and 40-50% precious metals made up of 5% juniors, 15% gold/silver producers and 20-30% physical bullion. Schultz believes holding such a large position in physical gold is a means to partly exit the banking system, to protect oneself against bank failures, to legally transport wealth, to off-set inflation, and for privacy. (Hyperlink 2 below outlines more of his rationale for his bullish stance.)

Ronald-Peter Stoferle, an analyst with Erste Bank, recently published a 68 page report entitled “In GOLD we trust” in which he concluded that, given the fact that only 0.8% of all global financial assets are currently invested in gold, gold shares and ETFs, it is hardly indicative of gold being anywhere near bubble territory as of yet.

According to Stoferle, many studies show that gold, as part of a portfolio, reduces overall risk and improves portfolio performance. Importantly, as gold is not linked to any liability or promise as opposed to shares or bonds, he recommends it for diversification purposes. (For an edited and abridged version of the lengthy report refer to hyperlinks 3 and 4 below.)

Ben Davies of London-based Hinde Capital, in a report entitled “Why Gold?” maintains that there are three principal reasons for investing in gold, namely, that 1) Gold is insurance, 2) Gold is undervalued and 3) Gold is in demand. He could perhaps now add that 4) Gold is in short supply. Davies is extremely bullish on the future price of gold believing that it will eventually go to a parabolic peak of from $10,000 to $15,000. (For a complete list of the many analysts with particularly bullish views on the future price of gold refer to hyperlink 5 below.)

John Embry at Investor’s Digest of Canada recently wrote an article entitled: “Gold’s on the cusp of a parabolic move up” (see hyperlink 6 below for an edited and abbreviated version) in which he made the following key points:

1. The IMF is now being forced to dump what gold it still has available into the market to restrain the rising price.
2. Western central banks have nowhere near the amount of gold in their vaults that they claim.
3. Due to physical shortages the western central banks can no longer supply the amount needed to balance supply and demand.
4. Mine production continues to stagnate at best.

Mr. Embry’s message is that it is imperative that investors ignore the volatility created by the anti-gold cartel (although corrections orchestrated by the Orwellians who mistakenly believe they can maintain control will remain an irritant) and use every opportunity that is created by them to purchase more physical gold. (Refer to hyperlink 7 below for Embry’s “17 Reasons Why Gold Will Increase by Several Multiples of the Current Price”.)

We are now entering the final chapter in which the anti-gold cartel will throw the dice in a last ditch attempt to manage the price of gold. That’s all the more reason to hold the aces of a solid portfolio – physical gold and silver - and maybe some platinum too!

Lachlan Rattray is a guest contributor to both www.FinancialArticleSummariesToday.com  and www.munKNEE.com. He can be contacted via the editor@munknee.com

© 2010 Copyright Lorimer Wilson- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in