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Gold: The World’s in a Dangerous Place
As investors await this afternoon’s Fed. Chairman Powell’s announcement as to interest rates, the world is, unfortunately, "heating up.” There is, indeed, a nearly direct correlation between increasing world hostilities and gold.
On this matter, I believe, sad to say, that matters could get even worse. What is currently "localized," could become "regional" (if it hasn’t already), and even "international," i.e., United States et al.
As a former history teacher, I see parallels between the current state of affairs in the Middle East, i.e., Israel vs. Hamas in Gaza, and the beginnings of World War I. World War I would last for over four bloody years; it resulted in the death of millions and millions of people, both military and civilian.
In this vein, I fear that it wouldn't take much for this ever-increasing “brush-fire” in Gaza to turn into a world-wide conflagration. I fear that if world leaders and organizations do nothing, the world could be setting itself up for a catastrophic crisis.
At this juncture I don’t want to sound like “an alarmist,” yet I am “a realist.” In my lifetime, the only thing that came close was “The Cuban Missile Crisis.” At that time, over 60-years ago, people were literally "speaking in whispers.”
As I change gears, however you look at it, whatever your "thought-process," gold benefits in these times of uncertainty.
Moreover, we've already seen gold move past the $2,000 mark. I believe gold is like “the parakeet in the mineshaft” when it comes to times like these.
Yes, I pray that “cooler heads” will prevail and that Middle East hostilities can be brought to a halt, because if they're not...
In the meantime, as it relates to precious metals, I continue to maintain 5% of my portfolio in gold and silver. Again, I consider it as a just-in-case “insurance policy."
Finally, we can only hope that matters settle down, for if they don’t, it may not matter what the value of your stocks are, or as it relates to this post, how many shares of gold stocks you own.
__________________
Walt (Teach)
"Walt, make a 'mental bet' and lose your mind." R.N.S.
"The important thing is what I think of myself."
"David and Lisa" (1962)
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