If You Can’t Afford to Lose 30% of Your Retirement Savings Today, You Must Own Gold
The comments below are an edited and abridged synopsis of an article by Olivier Garret
Can you afford to lose 30% or more of your retirement savings if the stock market crashes? It is never too late to invest in gold, and make a profit at any age. With the market showing early signs of correction, Garret suggests that now is the perfect time to invest in precious metals. Stocks and bonds have been in a major uptrend for 9 years and 20+ years respectively, and so are overdue for a correction. Gold, on the other hand, peaked in 2011 at $
As soon as the markets tumble, the Fed will resume quantitative easing. In turn, precious metals will continue the rally that was halted after the end of QE3 in 2010. Gold is not correlated to the stock market. So many investors buy gold not to make a profit, but to preserve wealth, hedge against inflation, stock market crashes, currency devaluation, and all sorts of financial crises. Garret warns against buying semi-numismatic or commemorative proof coins, because they will often cost 10% or 15% more than standard Gold Eagles, and will resell for far less. Ideally, investors should stick to 1-ouncegold coins (such as American Gold Eagles or Canadian Gold Maple Leafs)or 1-ounce gold bars. These are the most liquid and cost-effective forms of bullion.
