A willingness to act in advance, when the negative catalysts are still unclear, and risk leaving money on the table, is the only certain escape. Risk derision and buy gold or gold shares, the pariah of all asset classes. When investment confidence falters, gold will be the leveraged play. A small commitment will preserve and protect some of the paper wealth that would otherwise disappear. Most holders of equity shares are unable to move their wealth efficiently between alternative asset classes.
Gold is the important exception.
It is liquid, and currently happens to be depressed which to our mind is one of the benchmarks of value. A small investment will translate into enhanced buying power following a serious upset in the financial markets. To feel rich on paper these days is commonplace. To convert these paper riches into lasting wealth will be the exception. Mr. Hathaway is a Senior Portfolio Manager at Tocqueville Asset Management L.P. and portfolio manager of The Tocqueville Gold Fund.