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What's the story on gold?
Will the Fed revaluate gold? Highly unlikely.
Will they overvalue it? Absolutely not.
Why not?
Simple. If the U.S. government were to deliberately overvalue gold - not merely allow the market to bid it up, but officially set an inflated price - it would be economic suicide for the fiat system, instantly gutting the dollar’s value while broadcasting to the world that Washington no longer trusts its own currency.
Only a bonafide idiot would do that.
Should I still stack gold? It won't give you the gains that you would achieve in a fiat currency investment system, but it's still a good idea to stack some gold.
How much?
The typical recommendation for how much gold an investor should hold in a portfolio ranges between 5% and 20%, depending on who you ask. It is NOT recommended to
Allocate 100% of your dollars into precious metals.
Why not?
APMEX states this on their website:
"Before we talk in-depth about how much you should put into precious metals, we want to discuss something not to do. We do not recommend putting 100% of your savings or portfolio into gold and silver. This may seem odd, coming from a company that sells gold and silver. But we get this question occasionally from customers considering moving from a traditional 401k into a Gold IRA.
The lack of diversification is the main reason not to move all money into precious metals. Diversification is about reducing risk, and if you overexpose your portfolio to one thing, your risk increases. Reduced risk is a key benefit to holding gold and silver, so we do not recommend that you allocate 100%."
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