Gold is a hedge. However, in my opinion, it is a hedge bargain. The value of a hedge should vary according to the cost and imminence of the risks being hedged against. In the case of gold, the risks are monetary. They are potentially very costly, and they are more than imminent. They are upon us in the shape of burgeoning deficits and a radically inflationary policy stance. Owning gold, you are insuring not against what may be, but against what already is. Folks who do not understand or see the insurance/currency aspect of gold will have a hard time protecting themselves from the consequences of policies wrought by the Fed and the present administration. While the timing is in question, the eventual outcome of this macro mess is not debatable. The Fed is artificially decreasing the price of Gold right now. Happy Bargain Hunting |