Physical Gold Is A “Long-Term Position” as “Hedge Against Governments”
By GoldCore
GoldSeek.com
Monday, 21 November 2016
Physical gold is a “hedge against governments,” a “long-term position” and is still “on a buy signal” in the longer-term according to Dominic Frisby writing in the UK’s best selling financial publication Money Week this week.
Frisby believes in owning physical gold for the long term and that gold is close to bottoming but could go lower in the short term:
“Gold has buckets of support in the $1,200-$1,230 area. It made its March and May lows there earlier in the year. The relative strength index is below 30 – meaning it is coming into the “buy” zone. Gold stocks were up 5% yesterday while gold was stable – that is often a bullish divergence.
So it’s very possible that gold could be making an intermediate-term low in these parts. If I sold everything now and it turned around and rallied, I’d feel like a right bozo.
The fundamental reason I own gold is that it is my hedge against governments. From a political upheaval perspective, 2016 has been the year that keeps on giving. I don’t see that changing. For all the volatility, you want a considerable long-term core position.
But this whole episode has been a valuable lesson in how, once you get swayed, it is very easy to get carried away.
The Rest…HERE
