In April 2017, I write an article urge people to own gold.

The price was about $1260 per ounce.

Here is the link to the article.

Most people buy gold and hope they’ll make a fortune on it.

They listen to “doom and gloom” gurus who claim gold prices are about to explode.

So when gold decreases in value, the average precious metals owner stresses out.

His “big trade” isn’t working.

Majority of people understand that gold holds some sort of importance but may not understand why.

That’s what I’d like to explain briefly today…

What you need to understand is that:

is that it’s the only real money…

it means it’s the only currency that isn’t someone else’s liability. It stands on its own.

Gold has been used as a medium of exchange for thousand years.

Governments can’t print gold. That’s why they hate it as a form of currency.

Gold’s value comes from its scarcity. And it takes an intense amount of capital, labor, and time to dig it out of the ground and process it.

Historically, during times of financial crisis or political uncertainty, gold has proven its value as a “safe haven” asset.

That’s why today – perhaps more than ever – it’s critical that your portfolio has some exposure to gold…

I own gold… and I urge you to do the same.

But I take an unusual approach to my holdings.

I look at gold the way a homeowner looks at his insurance policy.

A homeowner buys insurance against disaster and hopes disaster never comes. He hopes he never has to cash in his policy.

Similarly, I hope I never make money on my gold.

If I don’t make money on my gold, that means economies and markets are behaving relatively normally.

It means I’m making money on my regular investments, like stocks, bonds, and real estate.

If the world economy goes haywire and gold skyrockets to $5,000 an ounce, sure, I’ll make money on my gold… but I’m sure to have a lot of problems along with those profits.

I’d rather make money in stocks, bonds, and real estate.

Think rationally. Think of gold as insurance.

Keep 5%-8% of your investable assets in gold as hedge.

Gold is great for this purpose.

Take the wealthy investor’s approach, buy gold… and hope the time never comes for you to have to “cash in” the gains.

So where does gold go from here?

The thing is, as you know… the Federal Reserve is pushing gold higher.

As we can see, the Federal Reserve and the U.S. government are doing everything they can to keep the markets running.

That means the money-printing will keep going.

Already, the Fed has pumped $3 trillion into the markets, on top of the $2.2 trillion stimulus package.

Of course, none of this money is real. It wasn’t earned… It was created.

That’s why it’s so important to place a portion of your investment portfolio in gold… and soon.

According to reports from Bank of America the price of gold will reach $3,000 over the next 12 to 18 months.

Here’s why…

According to the Financial Analyst Bill Shaw:

When we look at gold prices across history, we typically use the “nominal” price. That’s simply the number of U.S. dollars it would take to purchase an ounce of gold at that specific point in time.

But we also know that the purchasing power of the dollar has been inflated away over time. A dollar today doesn’t purchase what a dollar could buy decades ago.
Meanwhile, the purchasing power of gold has remained relatively constant.

That’s why I prefer to look at gold by using the real price. That means using inflation-adjusted dollars (today’s dollars) to value gold through history.

So for example, in 1980, the nominal price of gold was $800 per ounce.

But in today’s inflation-adjusted dollars, the price would be $2,800 per ounce. That means that gold still hasn’t hit its all-time high in real terms. It still needs to rise about 50% from today’s level.

Simply put, the Fed wants inflation. And my bet is that we’ll get it.

When that happens, you’ll be glad you own gold.