by Byron King, Whiskey and Gunpowder:
As you can figure out, especially if you’re a longtime reader, you had better have your stash of physical gold and silver. Furthermore, if you haven’t noticed lately gold is on sale. The shiny stuff trades at a 17% discount to last year’s highs.
People give me grief all the time about recommending and holding gold. “Oh, gold is risky,” they say. “Yes, of course,” I reply. “Gold has been risky since I started buying it at $300 per ounce, back in 2001.”
Indeed, gold is risky today. From its current level gold could decline. That would be if there’s a massive market crash, and people have to sell gold to raise cash to pay off their margin calls. Remember 2008? Gold sold down from about $1,000 to about $750. Still, that 25% haircut was mild, compared with what happened to the rest of the market. And through it all — the crash and turmoil — gold remained liquid. Somebody bought that gold. So gold is good, especially when people need fast cash.