Why I`m a Gold Bug




rustyrabbit, another flickr subscriber, created this beauty
Gold Bug
Flickr-User: Sybil Star.

My daughter-in-law asked me a few weeks ago what to do about her stock portfolio, the value had dropped so much. I told her then, as I suggest to all of my readers now, that one should have at least 10% of their assets in gold, preferably in ingots such as the 1/10th and 1 ounce variety.

Here is my reasoning: Suppose you have $100,000 in assets with 90% in stocks and 10% in gold ingots. If Islam disappears from the face of the Earth and the world is all rosy and peaceful then your stock investments in 30 years will be worth millions and you'll be able to live in comfort in your golden years. Gold will be worth little but that won't matter because you will be living in peace and security.

On the other hand, if things continue with Liberals ignoring the Muslim threat and the world economy drops in the toilet with disease, famines, and wars all over the Earth, then in 30 years your gold will be worth millions. You will be able to live peacefully in a secured compound while riots, looting, pillaging and other atrocities are being committed in the streets. You will have paid off the local Muslim warlords with a few golden ingots to leave you in peace. Your stock will be worthless but that won't matter because you will live in comfort in your golden years.

With my advice, it doesn't matter how the world turns out, or whether my view of the future is looney tunes or not, one comes out on top either way. Even if it's 99.99% certain that everything will still be OK in 2040, it doesn't hurt to have 10% in Gold to insure you against an uncertain 0.01%.

Just so you know, I plan to make a $90,000 addition to my home. I recently sold enough gold at $896 so that my true cost is about $30,000 that I paid a few years ago. There are predictions that gold will go to one thousand or more an ounce. Silly idiots! If Ahmedinejad keeps his promise with Israel in the next few years gold will soar to $5,000 an ounce and more.

By the way, the reason for small ingot sizes is to facilitate the small purchases of food caches, arms, security forces. Use the larger ingot sizes to buy homes.

If I'm wrong about the future, your 90% stake in stocks will do you well and your gold investment, only 10% of your assets, won't hurt you. If I'm right, your stocks will be worthless, but you'll thank me about the gold.

Normally, when I give advice, I point my readers to my boilerplate disclaimer where you will come across this:

Data and information is provided for informational purposes only, and is not intended for trading purposes. I shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

However, in this case, the advice is rock solid and I waive the disclaimer. Ignore my advice at the peril of your financial future. Ignore my advice about Muslims in my other articles at the peril of your life.



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