There’s gold in them thar portfolios
February 13th, 2008 | by Paul |
You know what really makes me feel good about the economic outlook? Financial experts hoarding gold.
According to the Malaysian Star Online (and some other sources - I just chose the most exotic one), more financial experts are padding their portfolios with gold rather than stocks or cash. That’s also the advice from Boris Schlossberg at Minyanville.com.
Minyanville.com, by the by, is where you can get financial news from a CGI bear and bull on such pressing issues as the Mr. T Gold Indicator and the current consumer outlook.
Anyway, gold - you know, that shiny rock you pull out of the ground - is doing so much more these days than letting Lil’ Jon tell people how rich he is.
It’s also a safe bet for investors who are scared of the dollar. The government’s plan of the economic stimulus package is based on Americans using the extra cash to buy, buy, buy, rather than save, save, save. It’s like the government is trying to guilt us into spending more.
I know it’s a big step from people investing in gold to actual hoarding gold, but both are signs of a lack of faith in the dollar, the stock market and the American economy. I’m a bit torn.
On one level, I like the idea of billionaires hoarding gold. It brings a very Scrooge McDuck vibe to the table.
On the other hand, it’s scary. Look at this history of gold hoarding from a 1975 Time article.
Either way, read up on the issue and figure out what you think.