It all points to physical gold

Now that all asset classes including:

  • property
  • equities, mutual funds
  • bonds
  • cash/currencies/money market funds
  • commodities

have gotten hammered, and the US dollar has rallied due to mass redemptions of foreign investments, an optimal position is in physical gold and silver. The paper market of gold is 2.5 times the size of the physical market, and with the IMF and others selling off positions gold is getting hammered. This should only be for the short term, and the current US$745/ounce won’t last for too long. As the US dollar and Euro get hammered in the medium term, precious metals will very likely shine.