Tags: gold | Savage | Rogers | bullion

Financial Author Savage: Don't Give Up on Gold

By    |   Wednesday, 13 May 2015 06:00 AM

Gold may has stumbled since hitting its record high of $1,923 an ounce in September 2011, dropping 38 percent recently to $1,190.

But that doesn't mean you should give up on the precious metal, says star financial author Terry Savage.

"No one is talking much about gold these days, since gold is typically viewed as a hedge against inflation, and there's very little inflation around," she writes in The Huffington Post. Consumer prices slid 0.1 percent in the 12 months through March.

"But that might not always be the case, especially with central banks around the world printing money furiously in an attempt to stimulate their economies."

So how should you purchase gold?
  • Perhaps in yen or euros, Savage says. That way you'd be hedged against a falling dollar.
  • Exchange-traded funds — no need to worry about storage costs.
  • Gold miner stocks — potential for dividends.
  • Gold coins — if you're interested in physical possession.

Meanwhile, star investor Jim Rogers has been bullish on gold for years, but that doesn't mean he sees the precious metal's strength lasting forever.

"Gold is going to turn into a bubble eventually, and when it turns into a bubble, I hope I’m smart enough to sell it," he told Sprott Money News, when asked what would push him to dump his gold holdings.

"On the other hand, on the down side, I’m not quite sure that I can think of anything that would cause me to sell my gold. If nothing else, it’ll be for my children someday."

Rogers sees major financial trouble ahead in our country. "The United States is the largest debtor nation in the history of the world," he said. "No debtor nation has ever gotten like this, and the debts are going higher and higher. That is a reason to own gold and silver."

The federal government's debt totals $18 trillion, compared with annual GDP of $17.4 trillion.

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Gold may has stumbled since hitting its record high of $1,923 an ounce in September 2011, dropping 38 percent recently to $1,190. But that doesn't mean you should give up on the precious metal, says star financial author Terry Savage.
gold, Savage, Rogers, bullion
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2015-00-13
Wednesday, 13 May 2015 06:00 AM
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