Why Hold Gold?

Why Hold Gold? by Adrian Ash for Bullion Vault

Cos your portfolio might need it, that’s why…

EVERYONE is getting bored waiting for the gold price to take off, writes Dave Forest, editor of Doug Casey’s International Speculator, in Bill Bonner’s Diary of a Rogue Economist.

But there’s good reason to believe we’ll see it pick up again soon. That’s because owning a hard asset such as gold is a time-tested way to protect wealth during troubled economic times.

Right now, we’re nearly 10 years into the current bull market on Wall Street. As this bull market gives way to the next bear market, gold is going to be a great asset to have in your portfolio.

Here’s why…

Hard assets don’t carry any counterparty risk. Unlike a stock or a bond, you don’t depend on someone else’s promise to pay. So you don’t have to worry about the issuer going broke, as so often happens in a financial collapse.

It’s a subject my team and I did a deep dive on in the most recent issue of International Speculator. We looked at how different metals performed in the last four financial crashes – the Japanese meltdown (1990-1992), the Asian financial crisis (1997-1998), the dot-com bubble (2000-2002), and the Great Financial Crisis (2007-2009).

We then took the metals that have comprehensive historical data available: gold, silver, platinum, palladium, copper, zinc, vanadium, tin, nickel, and aluminum.

And we plotted their performance during the three “acts” of each crisis…First, one year prior to the crisis. Second, the period during the crisis. And finally, one year after the crisis.

Our analysis revealed which metals were the best stores of value during a financial panic.

Let’s just focus on the first five metals here – gold, silver, platinum, palladium, and copper. Those are the ones you will likely be most familiar with.

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The Daily Coin

Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.