Why Gold is Still King

While gold has been used to hoard wealth since the beginning of history, many mainstream experts still deride it in favor of nearly any newly invented investment opportunity. Financial advisors only suggest that gold should make up under 10% of an individual’s portfolio. Independent individual investors, dark money, and governments have recently contributed to gold’s spike in investment use, but mainstream financial advising professionals still use it far less than would be reasonable. They steer away from gold’s long-term stability because they cater to an audience that is conditioned to want far higher returns with an unreasonably low amount of risk. They have also confused the high convenience of electronic assets for investment value. Lastly, they hold to the assumption that the current socioeconomic system will be sustainable for an indefinite period of time.

The modern individual, while having access to an unimaginable amount of information, has a bias against reality as a result of some unique conditions. The idea that human progress and the stock market will rocket up together for all time is a belief that many of our ancestors would have found laughable. We live in a unique time where every problem that has plagued humanity for millennia is looked at as a candidate for extermination. We believe that the problems we face today could be eradicated within a few decades at the longest. Even when we do not believe this explicitly, we have let this assumption creep into our minds. In this sort of world, we feel entitled to have it all, and we will not settle for mediocre returns. We believe that high returns are both guaranteed and with very low risk. An advisor could become extremely unpopular and even viewed as hurting his customers if he warned them of this overly optimistic condition. Suggesting that people buy a lower returning asset is not often looked upon favorably, so advisors choose the easy route.…