Gold corrects as bitcoin fliesReaders of this blog know how keen Baldinvestor is on owning gold and precious metals. They feature prominently in the recommendations. In fact in this environment of constant money printing globally, they are among the only things we are confident buying.
However gold has been is a reasonably steep drop since August, losing more than 10% from its highs of over $2000USD to now be around the$1780 region. Considering this is while governments are undertaking massive money printing this has been a shock to some, but to put it in perspective it is really just a small correction so far.
We view this as an opportunity to buy more as focus has shifted to higher risk shares and to bitcoin. We view the current positivism as fleeting as the damage done to economies, bankrupt businesses and the consumer hits investors. The world geopolitical environment is heating up as China offends more of the rest of the world, particularly at the moment Australia.
Everything is pointing to an environment in which gold should be thriving for many years, so at these times of weakness it is opportune to continue buying. Remember that Australias vast resources place us in an enviable position to be one of the premier gold producers in the world. Australians should count themselves lucky and take advantage by becoming owners of some of our great natural resource companies.