COVID-19, Deficits, Gold in 2020
With MASSIVE stimulus in response to coronavirus investors want to know should I buy Gold in 2020? Will the stimulus spending lead to inflation? Will record unemployment lead to deflation?
Here is a great video from Marin Katusa and Brent Johnson discussing what this fund manager is buying now and his take on Gold going forward.
The video is titled the REAL short squeeze of the century, and much time is spent discussion the US Dollar, dollar swaps and currency issues.
After all, if you are a US Dollar investor, you are not experiencing record Gold prices; yet, if you are in most other countries you are!
How can all that be reconciled into a simple recommendation of whether to buy Gold in 2020 or wait for some other event or set of events in the future?
In short, Brent Johnson likes Gold, owns Gold, yet feels that in USD terms it may still move lower. He recommends owning Gold, though, as insurance for now and perhaps large gains in the future.
No one knows the future…
COVID-19 descending upon us as a Black Swan proves that.
And the stock market response – so far – has NOT been as predicted by most ‘experts’ (ex-spurts, if you prefer!)
If you are looking to buy and store Gold, it matters not if you prefer to hold it yourself or store abroad in secure, insured facilities. Either way, we like the Hard Assets Alliance [review] – or HAA for short.
Owning Gold now as insurance is a decent play, in our humble opinion, and offers lots of upside potential with minimal – we believe – downside risk.
It only makes sens that at some point, all this money printing, stimulus, call-it-what-you-will – has to come home to roost and Gold will shine (likely Silver too.)