Fortunately, I held onto my gold miner shares while many on Wall Street were luke-warm about gold.
There were times when I wanted to get rid of them all but I stuck with my game plan albeit reducing my risk profile. The reasons I have given before for gold to go up do largely remain. There is too much printed money in the system even if not at full velocity. And the central bank’s balance sheets are in question.
Unfortunately, the central banks and bullion banks remain dominant in suppressing the price of gold. However what has changed since I last wrote is that Trump looks like he will be the Republican presidential candidate. And the Russian Air Force is through barrel rolls showing a distinctfully uncomfortable perspective on NATO moving forces frontwards towards Russia. Not good in terms of containing geopolitical risk. But that converts to being good for gold and incidentally the huge hoards of gold Russia and China are building up.
Trump remains an uncertain card for many in the establishment including the financial and trade elites. They worry that his policies will undermine free flows of good, services and even investments thereby reducing global economic activity. And they fear there will be more civil unrest in the number one economy as he would promote a clamp down on Mexican and Muslim immigration.
At least that this their own propaganda that a lot of the financial establishment is swallowing. If it gets to an accelerated degree they might leave their solidarity with the gold price suppressionists. That would be an important inflection point for s big “buy gold” to be declared by mainstay analysts.
On top of this the US dollar is becoming less attractive and there are worrisome signs not only with social cohesion but economic cohesion. It may be therefore that the “super cycle” of the rising US dollar is over. If so, this will attract lots of dollars to gold.
Again even with no absolute certainty on where gold is going, keep it at five percent of your portfolio in gold or gold related investments might seem to be wise words. This keeps working well for me as well as forex.
P.S Got out of Russian rubles at around 40 to a buck over a year and a half ago. Still have bank accounts in Russia and you too can as well inclusive of holding US dollars accounts. I do not see a problem with Ross Bank at this stage which I generally find to be okay but a bit gouging on forex rates. it is a subsidiary of SGF of Frsnce, one of the largest banks in that country. Vive la France, too.