Gold again! I subscribe to to number of feeds in a variety of fields but the one thing that keeps cropping up is the call for baby boomers to look at gold as an investment. Another feed I received today included these reasons to consider gold;
1) Geopolitical environment volatility
2) Commodity price cycle
3) Investment demand
4) World mine production flat
5) Global fiscal and monetary reflation and deflation
For more of please go to A Case for Gold.
Filed under Finance by admin
With all the talk about double dip recessions, economic collapse etc some info on how to hedge your bets with gold maybe timely. The Perth Mintvis one of the few places that physical gold can still be bought. But it’s not the only way you can buy gpls and hedge against worse times ahead.
Below is an comment on the Perth Mints site.
The Perth Mint has a strong reputation for excellence and innovation and now offers a variety of different methods of precious metal investment to cater for individual investor needs.
Investors who do not want the inconvenience and risk of storing their precious metals can take advantage of the investment products that The Perth Mint has developed. These products allow investors to buy gold, silver and platinum via its Certificate and Depository programs or to buy gold via the Australian Stock Exchange.
Alternatively, The Perth Mint manufactures a wide range of bullion coins and bullion bars for those who prefer to store physical precious metal themselves.
We live in interesting times and certainly stories of investing in precious metals, particularly gold and silver are on the increase.
Following on from the previous entry about Baby Boomers and retirement. The extracts below puts forward a case that gold is an essential investment choice for those of us about to retire. Until now Peter Schiff has been the main voice in the media talking up gold as protection against the impending demise of the US economy. But Marvin Clark puts forward some very interesting thoughts, echoing what Schiff has been saying for years now. The following few paragraphs are from his article.
Baby boomers face a cacophony of advice, a cornucopia of information, and a cavalcade of confusing and contradictory data as they sail into retirement.
Any serious talk about a new global reserve currency, partially containing gold, replacing the US dollar, would implicate a gold price in the five figures range. The ownership of gold today as a core portfolio holding is not only to hedge against inflation, a rise in prices, deflation from credit contraction, but also, hyperinflation, and a collapse in a nation’s currency, to preserve accumulated wealth.
You ask why trust gold now when most financial professionals are opposed to acquiring bullion at current prices? Before reviewing some macroeconomics metrics demonstrating the logic for this decision, ask yourself: why were financial planners parroting in 2001, 2002, 2003, 2004, and 2005, that over time all stocks rise in value; did stocks obey their wishes?
Baby Boomers’ choices must mirror where we are going, not where we have been. Paper assets in 2000 and real estate in 2006 crossed over from being an ally to an enemy to wealth accumulation for the average investor, and will continue to do so, for years to come.
In anticipation of this global redistribution of wealth, and as global US market share declines to the benefit of emerging markets, the supply/demand curve for precious metals and rare earths will fundamentally raise the floor on the price of gold. The US dollar’s purchasing power will also decline over time.
Baby boomers planning on living for the next 20 years must really consider gold as a core long-term holding in one’s portfolio, and not just a short-term trade or a token position, to maintain your family’s net worth, purchasing power, and liquid asset needs.
It’s worth reading the whole thing so head over to Baby Boomers and Gold to do so.
The Baby Boomer generation is worldwide and not just an American thing. Australia, Canada, UK and parts of Europe, New Zealand and South Africa all have this demographic bubble.
So I was interested to read an article from the Sydney Morning Herald discussing some of the problems facing the boomers and society in general.
40 years ago people retired on the pension and felt entitled to it having worked all their lives. These days however to retire on the pension alone is considered a failure and those who do are considered second class citizens.
To quote,
“There is a very strong feeling among baby boomers that they should have provided for themselves, and that they somehow feel that they haven’t really done the right thing by ending up on the pension, even though, for almost all of them, there has been no choice over how life circumstances have turned out.”
It seems the retirement dilemma is causing ripples yet again.
To read the full article see Attitude Toward Pention Needs To Change
Paul Hodges has some interesting thoughts re boomers and their changing spending habits over at his blog.
The extract below is part of his comment;’
‘But they are getting closer to retirement, with a median age of 54 years. And so their need for ‘new things’ is reducing, as is their ability to afford them. Equally, as the above chart from thechartstore.com shows, their savings rate is starting to shoot up. They were let down by the stock market after the dot-com boom; then the housing market disappointed.
So now we seem to be seeing the start of a generational switch from spending to saving in the world’s most important market. From close to zero, the savings rate has already jumped to 6%, as baby-boomers worry about how to afford their retirement, especially as they can expect to live longer than any generation in history’.
Harry Dent argues that the economic cycle is dependent on the generation spending wave. And that indicates that things are not going to improve for quite a while yet. I hope he’s wrong, but in the mean time I am one of those boomers who is cutting spending and trying to save more!.
To read more go to Boomers cutting spending and start saving.
