You are supposed to own gold for a number of reasons, including having it as a store of value when times are not good.
With central banks, especially the FED, printing money as fast as possible, ballooning the debt and devaluing paper-based currencies, gold is the only real money. Even if gold doesn’t generate dividends or produce cash flow, gold belongs in your overall investment portfolio, especially right now. Over thousands of years, gold has more or less kept up with inflation. It does make strong moves higher when conditions are right. And the conditions are currently right:
– There is currently a big gold shortage. Gold coin dealer charge huge premiums, if he even has any gold coins to sell.
– Gold allows you to diversify your portfolio in a way that is not correlated with stocks.
– While stocks are on the rise, the price of gold recently hit a 10-month low. This allows investors to add gold or gold-related assets at low prices.
It’s smart to have assets that do not correlate with each other in your portfolio. Gold is one of those non-correlated assets. With the money printing press working overtime all over the world and inflation starting to tick higher, it makes sense to own gold or gold-related assets, which are non-correlated to the stock market, in your portfolio.