When anyone talks of certainty in this world - alarm bells should ring:
doberden: "Gold fluctuates up and down and is certainly a risky investment."
Gold remains a finite currency and a safe haven asset, contrary to this wild assertion.
Currencies such as the Euro, dollar and pound fluctuate as wildly if not more and all are falling sharply versus gold in recent months.
The German Bundesbank recently clearly stated how they view gold as an essential monetary asset and safe haven asset:
"National gold reserves have a confidence and stability-building function for the single currency in a monetary union," the Bundesbank said. The wise sages in the Bundesbank said that financial and political uncertainty make their gold reserves even more important than before. The Bundesbank is the world's second-largest holder of gold after the US Federal Reserve, and has sold just 20 tonnes out of total reserves of over 3,000 tonnes in the past five years.
Right now it makes sense to stay defensive in cash in Rabodirect, Credit Union and the Post office (eggs in different baskets) . And with global competitive currency devaluations and David McWilliams and others warning of potential hyperinflation - owning a little bit of gold makes sense - 10% allocation is a good rule of thumb and in current climate could go a little higher.