gold sets more records ..., page-5

Oscar

I tend to agree but I'm only in a percentage agreement with your statement:

">Gold yes, but not gold stocks."

Its all a relative thing. If GFC2 arrives backed by a disintegration of the USD you can be sure of one thing:

"Cash will be King"

Why is cash (not gold) king?

Because the world still hasn't awakened to the reality that GOLD is the ultimate currency.

Gold will perform relatively well against other asset classes. In fact it will perform better than it has in the past becasue awareness of its ultimate power is increasing. However, it still is not mainstream and as such it will suffer in relative terms against cash.

Equities will suffer, as shown during GFC1, in the flight to cash. Last time Gold equities got slammed - but not as bad as they could have. This time, I suspect the damage will be even less as gold becomes a more desirebale hedge against inflation and uncertainty. For those who don't/ won't buy gold itself, there will be a new flight to gold equities thus partially offsetting any selloff.

Perhaps that's point we need to make:

"hedge against inflation AND uncertainty"

As gold becomes more and more mainstream (i.e. gets a larger slice of the investors dollar), gold itself and associated equities will become less vulnerable to GFC style disasters. People will realise that paper money will buy less over time with gold capable of maintaining buying power.

GC