John Sweda

Own Gold? Time to Fold

I would recommend purchase of physical gold as an inflationary hedge at prices of $750/oz or below, not to exceed 5% of a balanced portfolio. I would consider purchase of the gold mining stocks to be in the category of speculative, to be limited to 5% of a balance portfolio. The only good news is that China is considering purchase of 4000 metric tonnes (it now has 600 metric tonnes), announced in mid-November. World annual production is 2500 metric tonnes. Certain gold mining stocks have moved up considerably since this announcement by China.