Here Is Some Truly Golden Advice For Investors
Here Is Some Truly Golden Advice For Investors from King World News
Here is some truly golden advice for investors as we get ready to head into December.
Golden Advice: Bet Against the “Experts”
November 25 (King World News) – Matthew Piepenburg at Matterhorn Asset Management: Successful investing, from Baron Rothschild to Benjamin Graham, inevitably overlaps with contrarian investing.
In short: Cooler minds avoid the madness of crowds.
This is true regardless of strategy (growth to value, trend to arbitrage) or asset class (from stocks to bonds, rates to precious metals).
Successful gold investing is no exception to this contrarian pattern of standing apart.
As of today, precious metals make up only 0.5 % of total financial assets. By simply owning precious metals, one is already among a minority.
But is this a wise minority?
Laughing at Gold?
We have all seen the dispersions cast against precious metal owners as “gold bug” dreamers investing in a “barbarous relic” simply taken from the ground, purchased, and then put back in the ground/vault for a fee.
For decades, the majority of risk asset investors have either ignored or ridiculed buyers of gold and silver.
But here’s the rub: For decades (in fact, for centuries), being in the myopic majority has been a mistake, and this is no less true today when it comes to the topic of precious metals.
He Who Laughs Last…
Contrarian investors in gold have been enjoying an undeniable run of price appreciation…
Gold has dramatically outperformed stocks this century, gaining about 555% vs. the 79% gain for the MSCI All-County World Index of stocks or the 146% gains for the S&P.
Those are hardly “barbarous” results.
But informed and far-sighted gold investors (with an eye on wealth preservation and currency hedging) see much further than just price appreciation and a “last laugh” at the expense of their critics.