Segment 1: Update: Gold breached $1,600 USD this week over concerns regarding Iran retaliation. Having settled back down to $1,550, gold is now forming a base at the high set in 2019.
Segment 2: Here are the TOP FIVE REASONS TO OWN GOLD IN 2020. #1) Inflation. Government stated inflation is 2%. So, according to the Bank of Canada you are losing 2% of your purchasing power on an annual basis. When you calculate real world expenses like energy, food, entertainment, insurance etc. the rate most commonly agreed on is 5%+. This means that on a ten year basis Canadians are losing up to 50% of their purchasing power every decade. Gold has been a timeless hedge against inflation, averaging over 9% a year for the last 15 years.
Segment 3: Top five reasons to own gold in 2020 #2) The stock market has been rising for over a decade. While some have benefited other not so much, either way the stock market is on a record run to the upside. The mainstream media may be loving the continued gains yet other who have experienced bubbles before know that they do not ring a bell when the top is in. If you have made great gains or are feeling stock market fatigue gold is one of the undervalued assets available right now. It also just happens to perform well when stock markets are not.
Segment 4: Top five reasons to own gold in 2020 #3) Central Banks. It’s not just their monetary policy of low rates and increased debt which alone is a good enough reason to own gold (to protect against devaluing currencies), but they are buying gold. That’s right 2019 was a record year for central bank gold purchases. The majority of the globe’s central banks are preparing for a financial system upset and they know they are going to need gold to get through it, and will need gold after. Gold is a golden bridge, so follow the central banks and the smart money.
Segment 5: Top five reasons to own gold in 2020 #4) Global Debt. It is over $250 trillion and counting, and not including unfunded liabilities. Remember Greece? When debts come due, austerity and write downs are the government’s two plays which will leave the middle class decimated financially. Don’t let the government come after you to clean up it’s mess. Get out harms way and protect your wealth with physical gold.
Segment 6: Top five reasons to own gold in 2020 #5) You should always own gold. There is no such thing as timing the market. It is time in the market. A portfolio with a 10-15% allocation of gold is a properly hedged portfolio. Gold is negatively correlated to the dollar (inflation) and performs well against volatile stocks (Dow is definitely in melt up mode currently). It hedges against bad monetary policy, and has provided thousands of years of trust. You cannot buy insurance after the fire and Noah built the ark before the rain. Gold should always be in a portfolio as insurance, and research shows that by having gold in a portfolio the overall performance rises by as much as 10%.
