Confluence of factors in favor of gold. I've thrown in my two cents before, all these factors are simply manifestations of the lack of confidence in currencies in general and the U.S. dollar in particular: dynamic economic growth of SE Asia based upon culture of savings and production, consequent current account surpluses in that region, particular application of these factors to China, these factors leading to a preference for a more stable store of value for the accumulating wealth; possible rise of the Islamic dinar (overlay of cultural and religious preference compared to the U.S. dollar in addition to the economic factors); development of the exchange traded funds which will give the investing world a convenient, liquid, and cost effective way to participate in the now increasingly obvious trend of gold's superiority to the dollar and other currencies as a store of value; and, eventually, the continued devastation of stock markets around the world as a store of value, due to the present overvaluations (and, if Russ is right and inflation takes off, due in part to investors fleeing from the bond markets).
For these reasons my investment position is to never take my bet on gold off the table at any time. I may nibble around the edges and cull particular stocks and other stocks to the portfolio, as any manager does, and reduce PM positions at perceived short term peaks, but core positions will always* be there.
*under conditions as I now see them <g> |
