Gold

Precious metals have a fundamental problem the world over. For thousands of years, humans have sought the ores and minerals needed to extract materials that have been useful to them. These range from sand, through oil, to gold, aluminum, iron, and various other metals. Now man has reached the point where finding natural resources has become much more complicated – all the low-hanging fruit has been picked.

Elections. Inflation. Wildfire. Earthquake. Pandemic. International tension. We are starting to get a lot of calls from clients asking for suggestions on what to do with their investment to make sure they weather these economic, political, and natural disasters.

Here we are. Election season. As if that is not enough, there’s this stimulus chaos, airline bailout struggle, and the ever present Covid19. Optimism over more federal fiscal aid has pushed the stock market and gold higher at the end the week.

Gold is more appropriately compared to the US dollar. Like the US dollar, gold is a medium of exchange that is accepted around the world. Like gold, the US dollar pays no dividend.

Since President Nixon closed the gold window in August of 1971, the price of gold has increased more than 37-fold. From a price of $40.65 at month-end August 1971, gold has risen to $1,528 today.