Twenty-five per cent net worth of portfolios 'must be gold investment'
Investors have been urged today (September 22nd) to ensure that at least 25 per cent of the net worth of their portfolio is made up of gold.
Larry Edelson, of analysts Weiss Research, has explained that the US economy is experiencing its worst crisis since the Great Depression, not least because of the failure of Fannie Mae and Freddie Mac.
With Lehman Brothers collapsing, the airline industry teetering on the brink and the value of the dollar slashed by 33 per cent in recent years, Mr. Edelson claims that anyone who doesn't own gold right now "has lost his marbles".
He said: "Gold is the only true form of money there is. It is no one else's liability. It has no board of directors manipulating its value.
"It has preserved its purchasing power for over 5,000 years of civilization. It has outperformed every paper currency on the planet.
"Given all of the above, and more, I am now officially putting out an emergency buy signal in gold."
Mr. Edelson also pointed out that investing in gold for the long term is prudent in the current landscape, as he expects gold prices to rise to $2,270 per ounce or higher.
His comments were echoed by Kevin Grady, a gold trader at MF Global in New York, who explained that investing in gold is one of the few safe bets as the financial markets continue to wobble.
He said: "This is a very scary time, and everyone is asking one thing: 'Where is the safest place to put my money?' Right now, gold looks like a good place."