JN: Not that long ago, I was on a panel with certain notables in the gold business and the MC asked all of us point-blank: "Gentlemen, what do you have in gold? You're telling your followers to own lots of gold." I think all of those present, besides me, admitted to gold ownership levels of far less than 10%. Most were clustered around 5%, at best. I think the audience found it quite surprising, as some folks are practically advocating putting your lifesavings into gold and running for the hills. Their own exposure to the physical side of the precious metal was pitifully small. Maybe they dabble in junior mining shares and consider that exposure to gold. Maybe they play gold futures or options, I don't know. They didn't explain. However, I am sure we would all like our gold gurus to put their money where their mouth is http://www.kitco.com/ind/GoldReport/dec092010.html
I always thought Gold was going to be a hedge against wealth destruction, banking oppression and a slow dive into unhappiness and the freedom life can give you. So I bought some Gold. It wasnt much, but it was supposed to symbolise a new beginning, this piece of Gold was to be the seed that would allow my life to flourish. Since i bought that gold, My wealth has been destroyed, the banks are always on my back, all my freedoms have been taken away from me and any happiness I ver had has been sucked from me. All because of that Gold wedding ring.
The only gold I've bought is the 2011 Roo at sunset. Hopefully it will be in my possession soon. In other news, how about those Americans. http://www.msnbc.msn.com/id/40577640/ns/us_news-wonderful_world/
It doesn't surprise me they don't have a lot tied up in Gold as it does not produce passive income. I would think the assets they hold the majority of their wealth are income producing assets. So unless they have a lot of shares or trade stocks ? Physical just sits and looks pretty IMO ? The others keep the cash flow coming in.
I've got an ounce! A token effort at best for most folks, but I wouldn't dream of having a stack without some representation of yellow!
Also it is important to remember that risk/reward and wealth protection have different dynamics for those who are wealthy than those who are not. The wealthy can buy vast tracts of agricultural land, run their own businesses where they are in control (as opposed to listed shares where somebody else runs the company) and vast number of other things which many of us find difficult to do. When you have less money it's harder to be as well diversified so you tend to concentrate your wealth into fewer investments. Also if you are mega rich even if you put 5% of your wealth into gold and the other 95% of your wealth gets wiped out you may still be rich and be able to live very comfortably without major changes to your lifestyle, therefore the gold has served it's purpose of insurance.
I'm between 10 and 20% but I take it more seriously than those guys I think. Excluding super funds I think I'd want to have enough for 3-5 years of lean living if the economy went to absolute crap. That requires quite a bit of preparation.
