Higher gold prices aren’t just possible, they’re inevitable.
When stocks, bonds and other paper
investments go down, gold usually goes up, thus reducing overall risk. Having a percentage of your portfolio in gold (and right now a larger percentage based on market conditions) is a conservative,
long-term strategy for wealth-building.
In fact, there are a variety of sound reasons why every investor should own gold:
- as a hedge against inflation
- as a hedge against a declining dollar
- as a safe haven in times of geopolitical and financial instability
- as a commodity, based on gold’s supply and demand fundamentals
- as a store of intrinsic value
- as a portfolio diversifier
Comparison of $10,000 investment performance.
Gold return is 10 times better than stock market.
The truth is, gold does more than protect your portfolio, it can fuel astounding gains.
As this chart shows, gold’s performance since 2000 has been 10 times better than the stock market’s return. Imagine the difference in your own portfolio if you had diversified into gold five years ago.
“Goldman Sachs has raised its fair value estimate
for gold over the next 12 months due to updated
forecasts for currencies and U.S. interest rates in
the aftermath of Hurricane Katrina.”
— Reuters; 9/13/05
Gold has already started on a healthy run —
up 15 percent since January 2005, driven in part by increased demand from insiders and investment pros making an exodus from paper assets.
So where does that leave you? Blanchard
specialists are asked daily if it’s too late for individual investors to run with the bulls. Our answer is… “absolutely not.”
If you look at all the factors favoring gold, including its historical relationship to oil prices (see below), you can come to only one conclusion — higher gold prices aren’t just possible, they’re inevitable.
It’s not too late to make money. Blanchard and other leading experts believe gold prices could reach $800 within one to two years, and potentially could go much higher.
But every day you put off increasing your gold position is one more day you expose your
portfolio to inflationary risk, AND one more day you miss out on the possibility of sudden and
dramatic increases in gold prices. Why take the chance?
