I would say art is a very bad asset to hold in a hyperinflationary time. All past hyperinflations have been in extremely troubled economic times. The last thing that people will want to buy in such times is something nice to hang on the wall.
Personally I have a considerable amount of gold allocation in my portfolio; between physical bullion and mining stocks I am at about 30-40%. There is increasing talk of a gold bubble, and personally I don't buy into the idea for following reasons:
- the general public is not buying gold, but rather being enticed by cash for gold shops to sell their gold
- there is talk of German's rushing to buy gold, but again it is not the average Joe; I recently received letters from two banks that I deal with in Germany, both of them advising against adding to allocations of gold
- the inflation adjusted price for gold would have to go to about $2400 to meet the 1980s level
- gold mining stocks are selling at very low p/e ratios in the low teens; if it were truly a bubble then we would be seeing soaring p/e ratios
- there has not been a blow off rally like can be seen in the dot com bubble of the most recent past
Saying all that I have not added to my physical gold since the price was at about €1050, and wouldn't at at the current price. What I have been doing at current prices though is adding to my gold mining stocks, as these are still quite cheap, in my opinion. When the next correction in the gold price comes I will be looking at adding then.
ive a few hundred euro worth of shares with patagonia gold but it seems to be a bit of a dud
gold mining shares dont always track bullion price as some of them are poorly ran companys , you got any tips , perhaps the market vectors mining ETF is a good bet ?
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