[Well, I’ve reached the top spot for Gold & Precious Metals Opinion Leaders, so I’ve gotta keep writing…]
Recently lower gold prices offer yet another opportunity for investors to adjust their portfolios to add more of the yellow metal in advance of what many feel will be some of the best years ahead for precious metals.
Relative to the first 10 years of the current bull market when the gold price rose an average of 17 percent, 2011 and 2012 have seen just mid-single digit gains. This could mean that the metal will soon bounce back from its recent underperformance with big double-digit gains. This seems all the more likely given that central banks around the world are printing record amounts of money and real interest rates in most developed nations remain parked well below zero.
Of course, for many investors, the word “gold” and the phrase “asset allocation” are mutually exclusive.
To most U.S.-based financial advisers and retail investors, gold remains an oddity of our modern world and, like billionaire investor Warren Buffett, they see little need for it in their investment portfolio. This comes despite what it could have done for them over the last decade as detailed in last week’s report: Why an Asset Allocation of 5 Percent for Gold is Too Low.
Two quick comments on this:
1. Their loss.
2. All the more reason to think that the end of the secular gold bull market is nowhere in sight.
[To continue reading this article, please visit Seeking Alpha.]