Yes, but with folks like Merrill Lynch suggesting 5% go into gold and silver bullion, that must be considered also.
"I do hope they are playing with risk capital and not their life savings"
Why absolutely. That's a given.
Well, actually not. Let's say you purchase ten one ounce American Gold Eagles at today's price of $349 per oz and the standard 2-21/2% commission; then the price goes down for a few months. You do not get squashed . You have not lost your coins. They are still in your safety deposit box and you simply have to wait till gold goes back up to the $349 level. You'll lose interest on your $4000 cash while waiting but, what if gold does skyrocket upwards like this article suggests?
Yes, I like gold at this $349 level...very much.
Again, one is using risk capital and not next months house note.
| with folks like Merrill Lynch suggesting 5% go into gold and silver bullion, that must be considered also.
My ex mother-in-law used to keep 10 cartons of cigarettes in her extra freezer. That was her "gold" in the event that the social order broke down and she needed something that would have purchasing power no matter what. |
I assume that the intent of that advice is to protect against the really, really, worst case where literally everything goes to Hell. If it comes to that, I'd rather have one of those new Smith & Wesson 50 caliber pistols than any amount of gold.