btw i'd like to quickly say that i've been reading this thread for a while as well as the other bubble thread and, regardless of the differing viewpoints, i'm impressed by the insights and knowledge i see among many of the participants. unfortunately, the rest of the nation seems blissfully unaware of the lowered standard of living coming down the line.
When you recommend 100% gold, are you talking physical only or would gold stocks be a good choice also?
based on my argentinan experience and what happened in the 30s in the USA, if & when things truly get nasty, nothing will beat having hard assets in physical possession, both inside and outside the country. hopefully it will never get to that point, and i don't see that happening in the near term, so no need to panic. longer term, who knows, but human nature being the same everywhere and throughout history...
i own plenty of long-term gold stocks and "paper gold". but, i'm not married to them and try to stay alert. if times get really tough or the market crashes they will dip and experience multiple contraction. plus, under stress, nationalization/expropriation of mines, exchange controls, and added precious metal taxes become likely government actions.
however i have also seen at least one instance in argentina where (short-term) stocks rocketed up simultaneously with an economic crisis. during that panic, stocks were perceived to be better stores of value than holding government-issued cash or bonds. so long-term, a geographically diversified basket of gold stocks will likely be a better store of purchasing power than dollar-denominated paper, assuming no violations of property rights or arbitrary tax increases. |
