Some consider gold an archaic relic and relegate it to the dustbin of financial history. They say it has no role in modern finance.
It’s true, since 1971, when Nixon defaulted on the gold-backing of the U.S. dollar, gold’s role in international finance seems to have diminished.
Yet those paying attention point out that while Wall Street ignores gold, except as perhaps a gambling chip in their casinos …
… sovereign nations like Russia, China, Germany, and others are quietly repatriating and accumulating gold.
Why would they do this if gold has no role?
You’ve probably seen many television commercials touting private gold ownership. Presumably people are buying it … or the commercials would stop.
And even though many gold pundits claim gold prices are suppressed to mask inflation, gold has been one of the best appreciating assets to own over the last 10-15 years.
Clearly central banks, governments, and individuals are buying up gold. Why?
And what does the activity in gold say about the future of paper currencies like the dollar? More importantly, what is the role of gold, if any, in YOUR portfolio?