No, in practice, you need dollars. You need dollars to live. There's no getting around it. Furthermore, you've been taught not to put all your eggs in one basket. And that applies to gold. Sure, based on the charts below you should probably have all your money in gold, but that 'feels too risky.' You just don't feel comfortable with it. So if you're a subscriber to Russell's writings, you buy some gold -- as much as you feel comfortable with, and you tell yourself, 'Well, I've got more gold than 99% of the rest of the poor fools in America, and maybe that's enough.' Of course, it isn't, but that's what you tell yourself."
Wednesday, February 20, 2008
In terms of investment, how much gold is enough. Richard Russell provides a practical answer in the Dow Theory Letters.