Doug Casey on Why Gold Has Stagnated… and What Investors Can Expect Next

What investors in gold, as opposed to speculators, can expect next from gold is that will continue to be the reliable storehouse of value that it’s been for many centuries. From Doug Casey at internationalman.com:

International Man: Doug, you’ve been a strong proponent of gold for many years—specifically physical gold as a savings vehicle.

How do you view physical gold today?

Doug Casey: I continue to view gold mainly as a vehicle for savings. It’s money in its most basic form. Banks and governments fail, paper currency has always been a joke, and the forthcoming Central Bank Digital Currencies (CBDCs) are criminally dangerous, possibly the worst innovation of all time. Anyone who doesn’t have a significant part of his assets in gold coins will be an unhappy camper.

But, first of all, gold is not an investment. An investment is an allocation of capital that produces new wealth. That’s not the nature of gold or any commodity.

Occasionally, gold can also be an excellent speculation. Since it was disconnected from the dollar in 1971, it’s had some spectacular runs. But it’s primarily a vehicle for savings. I’ve been buying it since it was about $40 an ounce. I’ve just accumulated more and never liquidated. It’s treated me quite well, having run from $40 to, at the moment, $1,650.

It’s a good speculation during monetary and economic crises. That’s because it’s the only financial asset that’s not simultaneously somebody else’s liability. You don’t have to trust in the goodwill of your rulers. Indeed, it allows you to automatically profit from the fact that they’re usually incompetent and dishonest.

In a world that’s head over heels in debt, where governments and central banks are bankrupt and printing up their national currencies by the trillion, owning gold is more important than ever.

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