In the last five years the price of an ounce of gold has increased 93%. Easy monetary policies and the downgrade of many sovereign debt ratings, including that of the U.S., have contributed to the high demand for the safe-haven precious metal.
Since May 16, in the lead up to September’s Federal Reserve announcement of QE infinity, the market pushed the price of gold up by 12.6%. The price of the yellow metal has been consolidating but could break out at any moment. Gold should be a component of all investment portfolios today as a hedge against profligate fiscal and monetary policy because it’s gold today and will remain gold tomorrow. The value of the dollar on the other hand is less predictable.
Latest posts by E.J. Smith (see all)
- Are You Fully Invested? - July 19, 2019
- Part II: The IRS is Coming for Your IRA - July 18, 2019
- Beat the IRS: Roth IRAs for Your Kids and Grandkids - July 17, 2019