Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Maurice Winn who wrote (70930)	1/4/2009 11:20:31 AM
From: carranza2	Read Replies (3) of 74559

The risk premium should be on "treasuries" not on shares and other assets. If I had to shut my eyes and hold an asset for 30 years, I would choose gold over "treasuries". Indeed. In the short term, when markets are collapsing around your ears, Treasuries are a very good place to have cash. Asset allocation is the key. One cannot be 100% in any one class. It's madness, but potentially very profitable madness. I think gold will increasingly be recognized as a store of value and a safety net. The problem of course is that it attracts hot money that leaves it once conditions improve. Hence, its famed volatility. Of course, given the 30 year horizon you propose, I am convinced that gold is a far superior vehicle than a paper currency, any paper currency, subject to devaluation via overprinting. It is protection against inevitable negative cycles which can last years more than we can. Does this mean you should put all in gold? No. But a substantial core of absolutely essential money/savings/capital should be placed in it for the extreme long term. We agree.

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