Gold Mine in Kalgoorlie, Western Australia. By electra kay-smith @ Adobe Stock
“Survival Guy, what do you think about gold miners?” I’m asked.
“I don’t like them,” I respond. “Because there’s a liar above every hole.”
Knowing whether a miner is going to strike it rich is like saying a certain stock is a sure thing. You just don’t know until you know, and that’s after, not before, the fact. It’s why I like my gold in bullion, not B.S.
Sure, there will be winners. But there will be surprises too. There may be leverage used to juice returns or what have you. Why would I want to take part in any of that with my insurance, which is how I view gold? I wouldn’t. This is a corner of my portfolio for safety, but given that, I know gold can also lose value because it trades in a “market,” and markets are opinions, too.
Think of your gold as a safe haven and not something to get rich from. Keep your target percentage allocation in the single digits. Don’t make it the star of your portfolio. It plays a role in your diversification, which may be the only free lunch in investing.
Action Line: Have some gold bullion for times like these. But if you ask Your Survival Guy, I’d tell you, “I’m not betting the ranch on it.” Email me at ejsmith@yoursurvivalguy.com to see how gold may work in your portfolio. And click here to subscribe to my free monthly Survive & Thrive letter.
Originally posted on Your Survival Guy.
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