by Jan Skoyles, TheRealAsset.co.uk
Here at The Real Asset Company we like to take a balanced approach to gold bullion investment. We see it as a good way to diversify your investments, hence why we’re fans of the Permanent Portfolio. However, there are many who choose to invest in gold because they believe it is the ultimate hedge against a system that will inevitably collapse and is led by an untrustworthy government. Whilst it may sound extreme, it is certainly not unreasonable and many of these beliefs have form foundations in history.
One of those individuals is Jim Rogers, someone we have often mentioned and acted as cheerleaders for on this very site. Co-founder Will Bancroft once wrote of Mr Rogers and this Disaster Economics approach, ‘[Rogers’] investing of the last 40+ years has had a broader approach, with wider asset allocation, than the Oracle of Omaha. Most notably is Mr Rogers’ more concerned focus on disaster, and less dogmatic love in with equities. Mr Rogers was a big proponent of real assets in the 1970s, including commodities and precious metals. His performance over that period was stellar, and Mr Rogers has been calling for gold and silver since the turn of the Millennium as well. If disaster economics is really here to stay, and investor perceptions are melded around this, strategies that pay adequate homage to this may better reward investors. Disaster economics means a more focused and long term attention on safe havens. Some of these safe havens are relatively less able to absorb these potential investment flows; gold and silver especially. Some might ask if the gold investment market is part of such apparent safe haven investing; you bet it is.’
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