Frank Holmes: 
9 Reasons Gold Looks Great in 2019

January 2, 2019 -- 2019 has arrived, closing out a year where gold enjoyed its best performance since 2010! 

Gold finished 2018 with a gain of 12.67%, including a 1.64% rise in December alone.

 

In a year dominated by headlines about stock market records, Federal Reserve rate hikes and the rollercoaster of bitcoin, some retirement investors might be surprised that gold did so well. But safe haven assets remain as relevant as ever as a diversification tool for savvy investors who understand that stock markets and faddish “investments” can fall as quickly as they rise.

Famed investor Frank Holmes thinks year-end is the perfect time to think about rebalancing your portfolio, especially if one area or another has grown out of proportion to others. Holmes has long advocated that investors devote a percentage of their portfolios to gold, though individuals need to consider their own tolerance for risk.

Holmes points out that gold has historically shared a low-to-negative correlation with many traditional assets such as cash, U.S. Treasuries and stocks, both domestic and international.

Here’s Frank Holmes’ list of 9 reasons why you should be considering your gold exposure right now:

1. Gold has beaten the stock market more than 2:1 so far this century.
    
2. Gold looks like a bargain compared to stocks.
    
3. Gold exploration budgets keep getting slashed.
    
4. Too much money is going into stocks with more than $80 trillion currently invested globally.
    
5. Higher sovereign debt could mean higher gold prices.
    
6. Fed tightening could induce a recession.
    
7. Fed rate hike cycles tend to end badly.
    
8. Trillions of dollars in global bonds stand to lose value now.
    
9. Demand for gold in India and China is alive and well.

If you are reading this newsletter, chances are you already might own gold or silver, perhaps in a Gold IRA. But is your portfolio still in balance after a year of +20% gains in stocks?

This is a time when diversification could save your retirement if the stock market cracks.

 

Source:Bloomberg,US Global Investors

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