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Time to look at gold again

Not for trading, for insurance

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This is not advice, just analysis

Video from: Doug Hunter's superb
Commentary from: Real Econ TV

We liked gold a lot in 1999-2000.

My only regret is I didn't go "all in."

I liked gold a lot less at $1,800+ a lot and let some go, retaining my core "don't sell until your life depends on it" position.

Now I'm looking again.


First of all, not for trading purposes. Trading takes time I don't have.

I'm looking again because prices have come down quite a bit and seem - seem - to have found a floor.

That said, gold could still go down further and go down a lot.

However, gold is a funny thing and these are weird times. Gold is physical and there really isn't that much of it in contrast with all the money out there.

If ever there were to come a time when confidence in the financial system takes a real hit (way more than 2008), there could be a serious "gold rush" that will make it very hard to obtain.

My opinion: If you're dealing in gold, deal in the real stuff, not pools or paper promises. That totally defeats the purpose. has an interesting storage deal that's worth looking into.

Gold is a wealth preservation device. If you don't have cash to buy gold, then you don't have wealth to preserve. Buy something else of value like food and other supplies. Gold trading is not a get rich quick scheme. In contrast, it's a get poor fast scheme for more people.