I try to stay away from making recommendations specific to anyone's personal situation. I just like talking about what I see as the prospects for risk, reward and protection.
Delivered gold is a hedge - a method to store value. Nothing more... (emphasized period) Delivered gold is NOT an investment. Once a person gets this registered in their head they can view gold for what it is.
In my mind, a person with a reasonable net worth would do well to hedge their dollar (local currency) exposure. Gold is a pretty easy way to do this for the average Joe or Jane. It is easy to buy and due to the value per ounce, you can own a fair dollar value and store it in a small place.
Larger investors would probably not want 10% or even 5% gold exposure. They certainly wouldn't take delivered gold and, if they went with gold at all, they would probably buy it in a derivative contract.
I get a big kick out of those who use the rational of "well, there's "X" number of people in the world, what if they all bought an ounce of gold" or "what if everyone thought they needed 10% gold allocation". IMO, these guys are scamming you.... (emphasized period again) They want you to buy gold because someone at the base of their pyramid is selling gold. The don't care about you sharing wealth - they want your wealth. It's no different from the analysts touting .bomb stocks in 1999. They were the sellers looking for buyers.
Regards,
doug
get out and do something with your kids/grandkids this weekend..
