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I do find it odd that more people are not moving their money into PMS.
Yes, it does seem counter-intuitive, doesn't it? My thought is that only a small fraction of the public is in PMs at the moment and that it is only desperation that will drive those not currently in PMs into them. So far, the situation does not seem that desperate to a lot of dollar holders. One would think that the Europeans would be much more interested in diversifying out of their troubled currency. While there has been some of that, mostly into gold, there hasn't been a lot of it. More money has moved into US dollars and into US Treasury paper than has moved into PMs. They say that knowledge is power. If so, then perhaps there are a lot of people out there who do not fully grasp the gravity of the current fiat paper problems. It is clear that very few financial advisers are steering people towards PMs. Some have added the gold and silver ETFs to their clients portfolios but that is hardly the same as owning physical gold and silver, now, is it? Should there ever be a run on GLD or SLV, they will certainly discover the difference between a paper claim on PMs and real physical PMs that one can hold in their hands. Of course, by that time, it will be far too late for them to actually DO anything about their collapsing financial situation.
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If gold dropped back to 2007 levels, you could have 142 gold coins in your pocket instead!
Yes, that is true. Or, if gold were to drop back to $35 an oz., they would have 2600 of those 1-oz. coins! But... just how likely is that? Not very. Neither are 2007 gold prices IMO. From the way things are looking with the dollar, yen, and euro, all the sovereign debt out there, plus all of the unfunded and underfunded liabilities of the various entitlement programs, we may not see $1500 an oz. gold ever again. But then, that's what makes horse races, as they say.
Posted 08/06/2012 11:28 am
