The word FACTS illuminated against dark word MYTHS

Gold Myths that Confuse Gold Buyers

I recently ran across an article entitled “The 12 Biggest Mistakes the Media Make When Covering Gold Markets,” by Gary Alexander. It’s a good article for potential gold buyers because it debunks many of the myths that lead investors, and their financial advisors, to exclude gold from their portfolios. For the most part, Alexander’s assessment…

Dollar sign floating in bubble, about to be popped with a needle

Gold in Another Stock Market Bubble

For weeks, I’ve intended to write a post on the current stock market bubble, and now, the New York Times‘ David Leonhardt has beaten me to it, but I’ll make some additional points. Robert Shiller, a Noble prize-winning economist, is among the market analysts and economists whose work I follow and admire. I discovered Shiller several years…

Debt chained to the ankle of business professional

Gold and the Debt Crisis

In the weeks leading up to the debt crisis in 2011, gold rose $400 an ounce to hit its nominal all-time peak of $1,895. The 2011 debt crisis was the one in which we came so close to defaulting on our debts that rating agencies downgraded the nation’s credit score. But it was good for gold. As the crisis approached, gold rose spectacularly. After the crisis was resolved, it fell dramatically but retained a portion of the gain. Can we expect a similar pattern as the current debt limit standoff progresses?

Golden egg in nest protected by hands

Gold Is Wealth Insurance Plus a Bonus

There is a fundamental misunderstanding of the role of physical gold in a balanced financial portfolio. The bull market of the 2000s has led many to think of gold as another way to increase wealth through price appreciation. This is mistaken. First and foremost, physical gold is insurance. When you think about buying insurance, you don’t think about a return on your investment. You think about protection against the unexpected. Gold’s core value proposition is as wealth protection when the rest of your portfolio is going down the tubes. Price appreciation in good times, if and when it occurs, is a bonus.