Given the painful slog over recent years for precious metals investors, we thought it was high time to bring them back on the program to offer an update on the fundamental reasons for continuing to own bullion.
This week, Chris sits down with HAA executive Ed D'Agostino to discuss the role of gold (and silver) in an investment portfolio during the age of bitcoin and endless central bank liquidity:
As for what's next for prices, in terms of supply, I think that the sector, in many ways, has a self-correcting aspect to it. If producers can't produce and make any profit — and that's really where they're at now in the silver mining sector — eventually that situation will correct. Mines will shut down, and the price will go up. We're seeing something similar to that in oil right now.
But then when you introduce the short position on the COMEX, things become more nefarious. In the US, the government has, in my opinion, beaten gold out of the collective consciousness of the American citizenship. So because of that, Americans tend to be very under-invested or under-exposed to gold.
My general sense is I think we'll kind of keep grinding sideways as we've been for a while until a trigger event happens — and then you'll see the real value of holding gold in your portfolio. During a black swan event, gold tends to hold up quite well whereas other more conventional investments — like equities, which have all the headlines these days — will struggle.
Gold, for me, is not a religion. It's not the only asset that you should own; but it's an essential assets that you should have in your portfolio. And if you look at it that way, then a period like this, in my opinion, is a good time to accumulate precious metals.
I always try to tell people that you want to buy any asset class — gold, silver or anything else that you're interested in — when it's out of favor. The time to buy it is before it gets hot. And the Hard Assets Alliance, because of our volume and our relationships, is in a great position to have access the physical product when things get hot.
Just take a long view of your metal holdings and keep accumulating over time. Don't let them take over your life or become a religion.
Click the play button below to listen to Chris' interview with Ed D'Agostino (36m:35s).