We hope all is well. Please see the following information
about the gold and dollar. Please bear in mind that
gold is a commodity. If you turn to the commodities
page of the wall street journal, you will see bids/asks
for various commodities such as lumber, pork bellies,
sugar, gold, silver etc. Please give some thought
to the fundamental difference in how the price of
gold is determined, then compare with a physical market
such as coins or rare coins.
Hopefully this short little bit on the differences
between gold and rare coins will help you consider
this matter deeper and then make more informed decisions
as to where various portions or percentages of your
investment portfolio, or fun portfolio should be sitting.
What do I mean by that? I once had a client for example,
way down South who was a cancer doctor who was buying
gold, silver, rare coins, high end rare coins in fact
when interest rates were low and the price of gold
was low. When we saw interest rates go crazy, sometimes
reaching double digits, this fellow sold everything,
every tangible asset he owned, with the exception
of some real collectors coins set aside for the future,
and took the proceeds investing it in guaranteed interest
bearing investments giving him, you guessed it double
digit returns years into the future. Smart investor.
Be smart. Recognize the signs. Do business with experts
who can be trusted and who have been around awhile.
Take care of your health. Remember the adage, Health
means wealth? Without it all the millions won’t
mean what it used to.
Spike
in gold puts dollar's reserve status in question:
Goldman Sachs BY
NIV ELIS - 07/28/20 11:43 AM EDT
A record high price for
gold, known as the currency of last resort, is raising
questions about the U.S. dollar's future as the world's
reserve currency, according to a Goldman Sachs research
note published Tuesday.
The commodity, which tends to see
increased demand during economic uncertainty, reached
an unprecedented price of $1,943 an ounce this week,
in part because of record-low interest rates that
Goldman Sachs analysts said may demonstrate a stronger
appetite for inflation at the Federal Reserve.
"Combined with a record level
of debt accumulation by the US government, real concerns
around the longevity of the US dollar as a reserve
currency have started to emerge," the analysts
wrote.
The idea that the dollar may one day
be seen as less of a safe currency jeopardizes its
role as the world's reserve currency, a position that
has given the U.S. financial system a tremendous advantage
in global financial markets for decades.
Gold is a safe commodity because it
is in limited supply and considered to have inherent
value, which means fears of inflation or other economic
turbulence like the coronavirus recession could drive
up demand. Goldman Sachs increased its 12-month forecast
for the price of gold from $2,000 to $2,300 an ounce.
Analysts said that while inflation
risks remain low today, a confluence of factors coming
together could push prices up in the future. Among
those factors are record-low interest rates, new steps
by the Federal Reserve to expand its balance sheet
and rising debt.
Meanwhile, the Senate may soon hold
a confirmation vote on a controversial Trump nominee,
Judy Shelton, for a seat on the Federal Reserve Board.
Shelton has supported the gold standard in the past,
a position that's unpopular on both sides of the aisle
and in most economic circles.
GOP Sens. Mitt Romney (Utah) and Susan
Collins (Maine) have announced their opposition, meaning
one more Republican could sink her nomination.
Shelton, who advised President Trump's
campaign in 2016, has called the Federal Reserve's
power over financial markets and money “quite unhealthy.”
