Longstanding question: Why do you buy gold? There are a multitude of reasons: diversification, crisis hedge, monetary insurance, inflation, the reasons go on. Here’s a new reason to think about buying gold – as a hedge against overvalued stock and crypto markets.
We’ve been saying for some time that sooner or later these two markets had to correct themselves and that gold would serve as a buffer against the inevitable. It’s a short and simple message, but one that is crucial for investors to address: Are you sufficiently hedged against overvalued equity and cryptocurrency markets?
- While the stock market has experienced some sudden and scary drops so far this year, gold has risen
- Cryptos have far too short of a history and are too volatile
Gold is one of the very few investments that can hedge the kind of market weakness and increased volatility we’ve seen this year. Without it, any other investment you own is almost guaranteed to suffer when the next scare inevitably hits the markets.
As you know, Mike Maloney believes there is much more of this to come: He has predicted not just a stock market crash, but a collapse of the US dollar and global economy. It is critical that you have a full position of physical gold and silver before those events take place.