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It’s Time to Buy Gold as Insurance

By Dudley Pierce Baker

Investors in the resource sector are starting to lick their chops at the prospects of $5,000 to $10,000 gold within the next few years or perhaps sooner.

Mining shares and especially the junior mining and exploration companies should soar in price with many 10 baggers, 20 baggers and more.

However, do you really think gold is going to $5,000 just because? Will we really like what we see in the world? Probably not.

This old world is getting pretty scary right now with the world political events, the North Korean situation, the U.S. Dollar declining, etc.

Yes, I do believe that we will see $5,000 plus gold and yes, we should all make many, many dollars from our investments. Remember that most of the big boys, Frank Holmes, Rick Rule, Doug Casey and others always preach that investors should invest in gold for insurance to protect one’s other investments/assets. They usually suggest an allocation to gold of 10% or so of investor’s assets.

What if this is the time that your insurance really pays off? What if your gold investment becomes 100% of your assets and you lose everything else? Are you prepared for this unlikely, but yet possible outcome? Remember that insurance only pays off when something bad happens, i.e., a catastrophic event, major financial crisis, major weather event, perhaps a North Korea gone wild firing nuclear weapons in our direction, etc.

Consider our friends and families in Texas and Louisiana today suffering from the effects of Hurricane Harvey. Even if they have insurance, they have still unfortunately lost everything. Better to have insurance for sure, but most did not and if they did it will not come close to replacing what they have lost and what they have gone through in the last 10 days or so.

In my opinion, this is the time for investors to own gold and silver as well as shares trading in the resource sector as insurance. This insurance could just save your financial life. I would suggest investors consider a higher allocation to gold, silver and shares at this time due to what I see coming.

Editor’s Note: Bull & Bear readers are encouraged to visit and join Dudley Baker’s free email list and receive a copy of “The Stock Warrant Handbook”, Your Personal Guide To Trading Stock Warrants.

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