Every day I find myself in conversations debating whether gold’s price is too high. There are a myriad of avenues by which one might address this question. Here is another perspective, courtesy of PlanBeconomics.com:
So, using the Nasdaq as a guide, we see again that gold is nowhere near bubble status. If fact, the rise is really rather modest. All bull markets climb a “wall of worry”. Everyone else is worrying – you shouldn’t! Sleep easy and go along for the ride.
All Things Considered – John’s Commentary
Action to take: Add to your positions as you are able. This market is going to get more and more volatile. It will be very, very hard to pick bottoms and pull-backs. Buy in modest amounts, and do so consistently over time.
On big corrections, load up – or “back up the truck” as some say. Above all, keep your nerve. Don’t panic and sell. This is only the beginning. I will let you know when to sell – because I will be selling as well.
What to buy: Low premium gold bullion coins and medallions. There is no reason to pay 5-10% premiums when what you really want is gold bullion. Currently I have excellent buys on Austrian 100 Coronas, Mexican 50 Pesos and US Arts Medallions – all 3.9% or less over spot insured and delivered to your door.
Quote of the day: “When the price of gold moves, gold’s price isn’t moving; rather it is the value of the currencies in which it’s priced that is changing.” – John Tamny, Economist, H.C. Wainwright Economics
