Re: finally gold getting some respect
What investors should, however, clearly understand is that, since 2002, all asset markets have risen in tandem and have become very closely correlated. So, when for whatever reason liquidity shrinks, all asset markets could be vulnerable to massive liquidation! (Certainly liquidity will evaporate when markets sell off - but what will be the catalyst?)
The investment, which is least correlated to asset markets would appear to be a diversified portfolio of cash, farm land, and precious metals. In particular precious metals could benefit from financial turmoil!
Gold will at least maintain its purchasing power, both in a period of high inflation and also if asset markets implode.
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