Margins Up Another 27% Good for Gold

Gold is retracting causing many talking heads to declare, as they have with each retraction in the previous decade, Gold is finished! Get out now! Remember the crash of the early 80’s! There are fundamental differences between now and then. Am I going to hold your hand and tell you it is all going to be OK? Nope, because that just wouldn’t be true.

If you don’t have the stomach for the ups and downs of this current market then pull your money out of everything place it in a jar & bury it in your back yard.  For those still with me here are the facts: Gold is still up for the year by almost 23% outperforming just about any investment. Second, the margins on Gold have gone up 50% in the last month thinning the herd of speculators in Gold.  Finally, Gold is still being purchased by central banks as they de-leverage from the Dollar.

Right now is one of the retractions that allow the smart investor to continue acquiring Gold & Silver for their Tangible Asset Portfolio. According to Marc Faber the current market calls for 25 percent to 30 percent in stocks, 20 percent to 30 percent in physical gold— in a safe deposit box ideally outside the U.S. in various locations because I don’t trust anyone —some cash, and up to 30 percent in real estate, particularly in Asia. While Faber’s advice is beyond our recommended 10% to 20% of net worth it bears taking under advisement from one of the best investors in the last 25 years.

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