Over the long haul, gold is the least risky and potentially most rewarding of all investment asset classes.” So says New York-based specialist gold analyst, Jeff Nichols, in his latest Nicholsongold newsletter. Admittedly Nichols falls into the gold bull camp, but is at the realistic end of gold analysis, seeing both potential upsides and downsides ahead. His latest article is headed Gold: Now is the time, and in it he lays out the various factors which he sees as having the potential to drive the gold price in the medium to long term – and as noted in the first sentence of this article he sees a reasonable investment in physical gold (not gold derivatives) – perhaps 5% – 10% of an investment portfolio – as key to protecting one’s assets over time.
So what factors does he point to as being the likely positive points for investment in gold? In truth he is primarily stating the obvious here, but it’s an ‘obvious’ which is often ignored by mainstream investors who seek more rapid returns than gold tends to offer. But rapid returns are themselves risky – it’s all very well chasing the stock markets upwards but as investors have found to their cost, bull markets tend to be followed by a crash and investors are notoriously bad at recognising when a crash begins and by the time they try to take their profits it is usually too late.
But some of the factors which could very easily come into play could have both an adverse impact on the general stock markets and a positive impact on gold.
This post was published at LAWRIEONGOLD