And the simplest insurance against the mania of policy makers may well be gold. That doesn’t mean gold will always go up; it doesn’t even mean gold will go up more than, say, silver. But gold is influenced by fewer dynamics than other commodities because of its comparatively low industrial use. The fact that it’s ‘just a brick’ is a feature rather than a bug: because it’s not the gold that’s changing, it’s the value of the dollar or currencies. For more details as to why I own gold, please download “Why I Own Gold”.
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Axel Merk is President and Chief Investment Officer, Merk Investments,
Manager of the Merk Funds.