Balancing the bet


Gold took another hit last night as the Dow Jones reached new highs.  Why?  Well it is clear from Yellen’s comments that the money printing continues and that props up equities.  It also means a continual weakening of the USD and expansion of the existing bubble. Bubbles always go pop.  We’ve just seen John Paulson and George Soros stay firm on their massive gold positions.  Why?  Clearly even the experts know this global economic experiment is tenuous, you can’t pick the top, and diversification is the key.  When the shares pop, the likely drivers should see gold and silver prices rise strongly (as they did after the GFC).  By all means have a gamble on some extra gains in the sharemarket but wouldn’t it make sense to hedge some of your portfolio on physical gold and silver bullion (especially at such low silver and gold prices)?