by David Schectman, MilesFranklin.com:
Yesterday I received two emails from readers who are worried that the Fed will cut back on QE and they wondered if the bull market in gold is over. They have read all the reasons we present why this isn’t so, but this is a tough market to ride out. Oh, the Wall of Worry – it gets to people when their portfolio is losing value. I have personally spent a lot of time and energy explaining the basics to these two but obviously I am not getting through. But as prices continue to retreat, they really don’t want to hear why it’s happening, they have lost faith. I finally said, “Well, if that’s how you feel, you should bail out now and find greener pastures elsewhere!” This is what happens when people look at gold and silver as “investments,” and discount the “insurance” value gold has, as a hedge against a litany of Black Swans that are ready to come forth, unexpected of course, that will re-ignite the bull market.
Gold is money. Gold is insurance. Gold is for portfolio diversification. It is a necessary asset class regardless of price. This really is a time to “think in ounces, not in dollars.” The lower the price, the more ounces you can accumulate. Payday is not that far off!
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