Sunday, July 7, 2013

Gold is easier to carry than a lamborghini

Gold is down 30% from its 2011 peak of $1,921, but has far outperformed financial assets since 1999. A correction was overdue. I have about a 25% allocation to gold and buy some every month. I want to have some assets that aren't in the banking system. When the asset bubble bursts, financial assets will be particularly vulnerable.

Gold is easier to carry than a Lamborghini.

Most of my gold is in a safe-deposit box in Switzerland, but I am shifting it to Asia. I also like resource stocks such as Newmont Mining (NEM), Chevron (CVX), and Total (TOT).