The fundamentals for gold and silver could not be better as the outlook for most paper currencies and government paper (sovereign debt) is not good. The precious metals are again being seen as safe haven assets to protect from government profligacy and currency debasement.
The risks of a "depression" and currency crises in Europe and the U.S. are rising and this is contributing to significant safe haven demand.
The fact that gold and silver have no counter party risk and cannot default and cannot be debased or printed into oblivion makes them crucial diversifications.
Gold, global equities and AAA rated, short dated bonds remain the best way for investors to protect themselves from today's growing sovereign debt and monetary risk.
Gold, silver, good equities and good bonds will be better than depreciating cash or currencies in the coming years. Real diversification will help protect preserve and grow wealth.
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