There has not been a time in my investing career where I’ve seen so many non-believers in precious metals convert in such a short period of time. Perhaps the most obvious and visible example would be Berkshire Hathaway’s (NYSE:BRK.A) newly-acquired stake in gold producer Barrick Gold (TSX:ABX). Berkshire Hathaway previously avoided the company (and gold in general) for various reasons, but mainly due to the fact that gold is generally an unproductive asset class.
Various analysts I closely follow have shifted their views in a similar way. One such analyst has suggested a gold and/or silver hedge of 15-20% of one’s portfolio right now may be prudent, given the heightened level of uncertainty the economy faces.
Equities have underperformed metals stocks over the past 10 years but are now playing catch up. Silver is performing particularly well as investors look past this pandemic to the other side. A number of catalysts related to the amount of monetary stimulus we’re seeing are broadly bullish for the entire sector.
I’ve always believed gold to be an excellent portfolio hedge, and would encourage readers concerned about their personal finances and stock portfolios to consider adding exposure if not already hedged.
Gold has dipped below the $1,800/U.S.-oz level of late, making now an attractive time to buy the dip, in my view.
Invest wisely, my friends.
