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The truth about gold in the long run

I’ve been spending a lot of time lately helping retirees try to figure out how to maximize their returns and yield on their money — and trying to find anything safe, which historically yields a measly 5%, is keeping me up at night. These people for whom I’m doing these deep dive analysis on their portfolios, are the real-life examples of investors being forced to take on excess risk in search of yield.

$GOLD doesn’t give any yield, and therefore it’s probably shouldn’t be a huge part of most retirees’ portfolios. And as the fool Keynes once rightly noted as he lost his shirt once again in the markets, “Markets can stay foolish longer than most people can stay solvent,” which means we don’t know when the long-term imbalances and bubbles that the policies of today will finally hit. But I am extremely confident that before I die sometime in the next 40 or 50 or whatever years, that the relative value of physical gold and silver will be up many orders of magnitude when this all unwinds at some point in coming years or decades.

So I do think some physical gold and silver holdings are key to every portfolio, even for retirees, though they would probably want to allocate a much smaller fraction of their portfolio than younger investors, in general.

I prefer gold over silver for the long-term, as I think gold-backed state currencies are likely to make a comeback in future decades, probably at China and/or Russia first.

To get gold exposure, I suggest the following, in order of importance for long-term investors:
1. Buy physical gold and coins and store them somewhere safe where you can access them personally anytime you want. Safes, local bank safety deposit boxes, and even buried in the ground somewhere are not bad ideas. Like I said earlier, I plan to own my own physical gold basically for the next 10 to 50 years.

Source Market Watch

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