Your erudite response to my question about buying gold bullion/coins
is deeply appreciated. Information like yours is worth its weight in,
well, gold.
You postulated that the only bona fide reason to buy and hold gold
physically would be under the most dire circumstances -- when it
would be of infinite, thus worthless, value. You argued that, if gold
must be a part of a portfolio, it should be in the form of gold stocks.
If, however, a deep global recession ensues at the turn of the
century because of the Y2K millennium computer "bug", how should
one be positioned? If a rising stock-market tide floats all boats, a
falling tide will drop them, including stocks of gold-mining companies.
In this case, many argue gold is the only sensible bridge to the new
century. One respected author/commentator, Tony Keyes, said he
will cash in his IRA's and take the penalty because of his conviction
that the Y2K problem is so severe:
y2ktimebomb.com
The chief economist for Deutsche Morgan Grenfell, Dr. Ed Yardeni,
envisions a 60% probability of a global recession due to Y2K:
yardeni.com
Under such unique circumstances, do you believe holding a portion
of one's assets in gold physically is a prudent thing to do? If so, how
should I buy it? Thanks again for your excellent, thought-provoking
response. |
