This page has been archived and commenting is disabled.

Have 10% of Wealth In Gold As “Fire Insurance” - Rickards

GoldCore's picture




 

‘Death of Money’ author Jim Rickards recommended a 10% allocation to physical gold when interviewed by the ‘Money Honey’ Maria Bartiromo on Fox Business last week.

In a very interesting interview which also included Barron’s Editor Jack Otter and FBN’s Dagen McDowell, Rickards said that gold is like “fire insurance on your house”  …

“Nobody wants their house to burn down but if it does you are glad you have some insurance”.

07-09-2015_1
(Click on the image to view the video on the Fox Business site)

Rickards points out that as gold is insurance you should not worry about its price as much as you would other assets. When you buy insurance you are not concerned when the price of the insurance falls. What is important is that you own it as it will protect from worst case financial and monetary scenarios.

He says that gold is money and warns that fiat currencies can lose value sharply if confidence disappears as has been seen in “5,000 years of history.”

Rickards reaffirmed his view that gold will rise to $10,000 per ounce but said that it is not gold rising to $10,000/ oz, rather it is the dollar losing value and a “collapse in the dollar” which could “start tomorrow” as we have an “unstable financial system.”

DAILY PRICES
Today’s Gold Prices: USD1121, EUR 1,004.03  and GBP 734.75  per ounce.
Yesterday’s Gold Prices: USD1,125.00, EUR 1,009.87  and GBP 737.95  per ounce.
(LBMA AM)

07-09-2015_2
Gold in EUR - 1 Week

On Friday, gold ended with a loss of just 0.29% while silver ended with a loss of 0.75%. For the week, gold was 1.08% lower and silver was 0.07% lower.

Gold was marginally lower in gold trading in Singapore and this slight weakness continued to European trading with gold tethered to a remarkably tight $3 range between $1,123.70/oz and $1,120.50/oz.

Gold again outperformed embattled stock markets last week. The Dow Jones Industrial Average, S&P 500 and Nasdaq were down 3.25%, 3.4% and 3% respectively. Other indices were down by much more - the Nikkei plunged by over 7%. The stock falls follow a dire August which was the worst month for stocks in more than three years.

IMPORTANT NEWS

Gold inches higher as China returns – The Bullion Desk
Gold Trades Slightly Higher in Asia – The Wall Street Journal
Gold struggles near 2-1/2-week low on U.S. jobs data – Reuters
Gold Holds Near Lowest in Two Weeks as U.S. Jobless Rate Drops – Bloomberg
Global concerns may shrink Wall Street’s third-quarter estimates – Reuters

IMPORTANT COMMENTARY

Father of the euro fears EU superstate by the back door – The Telegraph
Russia flirts with Saudi Arabia as OPEC pain deepens – The Telegraph
“System Is Highly Unstable—If [Confidence] Is Lost, It Can Melt Down Very Quickly” – Sprott Global
Get ready for a lousy September as investor sentiment slips – MarketWatch
The Frankenmarket Monster – MoneyWeek
 
Read the stories above on our News and Commentary page
 
 
GoldCore: Guide to Storing Gold Offshore
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 09/07/2015 - 18:26 | 6519823 honestann
honestann's picture

I used to have 95% in PMs.  4 years ago I converted most of that to create my self-sufficient digs in the extreme boonies of the southern hemisphere.

I was totally lucky that my timing took me out almost at the exact top of PM prices in 2011.  That was not skill or genius... I didn't know the predators-that-be would go all-in to manipulate prices downward for the past 4+ years.

Two points:

It is much more crucial to keep your virtually all your liquid wealth as physical gold and silver today.  Everything you keep in any financial institution in the fictitious USSA or allied fictitious nations will be stolen, and permanently lost.  So remove it now, while you can.  And I do mean NOW.  All of it, retirement accounts included (or switch immediately to self-directed IRA and get the assets into Singapore or other secure location... if any exist).

My second point is less of an "emergency" in the sense you can take some time to execute.  And that is, most of your wealth should be held in [foreign productive land], productive equipment and supplies that you [and/or partners/employees] operate that produce a continuous output of real, physical goods and/or goodies that other producers will gladly trade their goods and/or goodies for.  In other words, everyone should operate their own productive endeavor.

Going forward, unless you have sufficient PMs to live the rest of your lives in the manner you desire, you are simply nuts to not be a producer of [somewhat] basic (not too esoteric) goods and/or goodies.  That's the only way to be reasonably secure in every likely situation (other than complete breakdown or global thermonuclear war) going forward.  Pick something you enjoy: sandals to barbecues to food/herbs/spices to weaponized wireless-video micro-drones to PCB assembly to tiny high-tech airplanes... whatever fits your joys, skills, abilities and your financial wherewithall.

Mon, 09/07/2015 - 16:45 | 6519647 Hongcha
Hongcha's picture

I got about 5% in bullion and that is way, way more than most people I know; whose stash consists of a few silver dollars rattling around in a bottom drawer someplace.  I could move that to ten but I will admit to a lack of enthusiasm at this point.  I would have to be teflon not to admit some degree of discouragement, even knowing the mechanics of the scam fairly well for a layman.

There is no action because there is no action.  The dog has been beat so much he don't even get offa the porch any more.  When the day comes there will be no more bullion to be had anywhere.  That will happen quickly; sellouts of entire dealer inventories and coin shows in a matter of hours.  The Chinese will come here for their gold because as soon as the bell rings over in the PRC to buy bullion, it will be gone that morning.  Completely.

Mon, 09/07/2015 - 16:38 | 6519625 Not My Real Name
Not My Real Name's picture

Something tells me the guy who wrote "The Death of Money" and "Currency Wars" has allocated much more than 10% of his wealth to gold.

Mon, 09/07/2015 - 15:36 | 6519365 RaceToTheBottom
RaceToTheBottom's picture

Interesting point Jim made about some old Italian money. He said they do 1/3 real-estate, 1/3 business(I think), and 1/3 gold.

Yet Jim was saying 10%. Wish he had the chance to explain why conserving wealth was doing 33% while he was recommending 10%.

Mon, 09/07/2015 - 16:37 | 6519614 Hongcha
Hongcha's picture

Because he knows if he recommends 33% he will be met with derision; whereas 10% is nearly doable for most of his clients.  He wants to sell positions or have his sponsors selling positions, after all.

Mon, 09/07/2015 - 15:05 | 6519243 Herdee
Herdee's picture

There are some pretty big reasons why Central Banks want their gold back and are accumulating.When Obuma leaves office he'll have run the debt to $20 Trillion.Just add on at least $200 Trillion of future entitlements and liabilites.Tell me they are are not desperate for hyperinflation.All western Governments and their Central Banks are insolvent.Condidence in paper currencies can disappear very quickly depending on the events to unfold.

Mon, 09/07/2015 - 13:59 | 6518989 worbsid
worbsid's picture

How much is fire insurance worth if you never have a fire?  Same as Z-dollars in Zimbabwe.

Mon, 09/07/2015 - 12:08 | 6518547 Jungle Jim
Jungle Jim's picture

Sure, it will go to $10,000 an ounce -- the day after I sell my last tenth-ounce for $80.

Mon, 09/07/2015 - 12:00 | 6518510 Jungle Jim
Jungle Jim's picture

Everybody keeps saying "The bottom is in! The bottom is in! Buy, buy, buy!!"

And it just keeps going lower and lower. But that's not supposed to matter to me when I sell it to the coin shop dude for much less than I paid for it, because "It's not an investement, it's *insurance!" Or, "It's for the future! It's for your children-grandchildren-remote descendants!" Which I haven't got any of.

Frankly, I'd have been far better off hoarding cash, actual physical paper money. That didn't lose fifty percent or seventy percent of its purchasing power in the last four years.

Mon, 09/07/2015 - 16:36 | 6519606 Not My Real Name
Not My Real Name's picture

Speculating is a dangerous game, Jimmy -- and, unfortunately, you got burned.

Mon, 09/07/2015 - 11:47 | 6518476 Jungle Jim
Jungle Jim's picture

Gold price down some more today. And I must sell some tomorrow or the next day. I wish I'd sold it before it went down this far.

Mon, 09/07/2015 - 12:57 | 6518723 ClowardPiven2016
ClowardPiven2016's picture

Sorry your ass is broke Jungle Jim. Gold is for people who have some wealth to preserve...not for people barely getting by.

Mon, 09/07/2015 - 11:22 | 6518400 CarpetShag
CarpetShag's picture

The mention of Maria Fartaroma is evidently intended to lend more credibility to this piece.
10% is noise in my book.

Mon, 09/07/2015 - 16:08 | 6519340 RaceToTheBottom
RaceToTheBottom's picture

Both of the other guests (in addition to Maria) were basically mentally retarded. The preppy guy is a 5% gold guy and the lady was too stupid to even critique.

Where do they get these snatches that can not even talk?

I have no problem giving them time in front of the camera but wait till they have something to say and please, please , please, make them learn spoken english.

They speak the white persons equivalent to Ebonics, Southern Stupid....

Mon, 09/07/2015 - 10:49 | 6518294 KnuckleDragger-X
KnuckleDragger-X's picture

Its all about value and paper is always killed by the printing press......

Mon, 09/07/2015 - 10:25 | 6518189 Payne
Payne's picture

All money is gold and silver.   Investments are those items that you largely are aware of the risks and are eager to risk money for future gain.

In the past most people had all Wealth in Land, Gold and Silver (100 years ago).  Even an industrialist.

Today 90% is at risk and the so called reasonable suggestion is 10% in real money (gold).

This should sound insane.  Federal Reserve Notes are debt backed by nothing but more debt.  Stock Market hugh bubble, Real Estate in a Fed reserve supported debt bubble.  Bonds not pricing in real risk of not getting paid. 

 

Mon, 09/07/2015 - 13:24 | 6518844 Uchtdorf
Uchtdorf's picture

All financial analysts have been saying 5-10% for years like it was some kind of magical mantra. I bet 0.01% followed their own advice. If all my friends depending on their 401(k) for retirement suddenly liquidated a portion of their 0's & 1's and went to gold and silver...

Well, let's just say that GS and JPM would have to release the Kracken.

Do NOT follow this link or you will be banned from the site!