Anytime I find a negative article on gold, I challenge the author. I don’t get but a few responses. Below you’ll find some of my further attempts to challenge journalists and advisors as to their real understanding of gold as an investment and portfolio insurance.
What I’m realizing though is that the story of gold isn’t important enough for mainstream journalists to interview me based on my challenges.
When I finally get that first email or phone call, I would imagine gold will have entered its 3rd stage. My guess is this will be when the dollar index breaks below 72. I just don’t see that happening anytime soon and actually view gold topping out here.
It’s hard for me to see the dollar falling further for the short term for a multitude of reasons. One of the biggest reasons is the Fed cannot afford to raise interest rates to compensate for a lower dollar at this point in time. The dollar must rise for now. The Fed must keep foreigners buying Treasuries to keep the game going.
But as I’ve said many, many times…if you hold physical, there are no worries. Gold is the insurance you need to protect your portfolio from a U.S. dollar decline and while gold mining stocks will be rather volatile both up and down, physical gold has been consistently rising year over years since 2000. A holder of physical gold cares not that gold falls to $700 an ounce from here on its way to $2,000 an ounce or more.
Because what our government is doing to try and fix things will eventually backfire, especially with the passing of the Health Care bill, physical holders of gold will be happy to convert more of their fiat dollars into the precious metal at a lower price. They won’t sell if/when gold goes lower. They know it would only be a temporary event.
Below are my recent comments to the gold bashers….if you want to follow the fun I’m having.
Feel free to post your own comments/opinions/observations in the comment section below. Agree? Disagree? Let’s discuss!
For those that are interested, and may not be aware, I did write a book on investing in gold called “Buy Gold Safely.” If I don’t promote it here, no one will know about it, so I hope you don’t mind me getting the truth out about gold.
Steadfast Finances (A personal finance and investing 101 blog) – I appreciate their response.
10 Reasons Why Investing in Gold is a Bad Idea
My Comments: #’s 10, 14, 15 and 19
CBS:
Why Gold is Rising (Hint: It’s NOT Inflation!)
See my comment: #6
PBS: Was interesting to see PBS write a story on this…
Why Is the Price of Gold So High? (only one comment so far; mine)
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About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
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