Everyone is talking about gold. The Wall Street Journal notes the public’s current enthusiasm for gold, writing:
Investors have poured a net $11.4 billion into physical gold ETFs since the start of February, according to Morningstar. The funds are on pace to net the most monthly inflows in March since July 2020, during the height of the pandemic.
Your Survival Guy has been a gold fan for decades, but investors should remember gold is just one tool in the toolbox. In fact, Your Survival Guy likes it when the price of gold is falling because that’s usually a sign that the rest of your portfolio is performing well. The thing about gold is, they’re making more of it, but not fast. Look at the growth of gold production:
Slow gold production growth means it isn’t exactly flooding the market, losing value as an asset via oversupply.
In real (inflation adjusted) terms, gold has topped its peaks in 2020 and 2011, and today’s prices are second only to the 1980 mega-peak.
Any decent toolbox doesn’t include just a hammer or a single wrench. It’s filled with options because the situations you’ll face are varied, and it’s best to have a diverse toolset to handle them.
Action Line: Your investment toolset is your portfolio. Diversified investments can give you greater options when facing times of market dysfunction. When you want to talk about diversity in your portfolio, and gold as a tool in that portfolio, email me at ejsmith@yoursurvivalguy.com. In the meantime, click here to subscribe to my free monthly Survive & Thrive letter.
Originally posted on Your Survival Guy.
