No. of Recommendations: 2
I know gold and silver have been huge lately but i think it's good to have a bear chime in occasionally. While I often disagree with Cramer on many topics, his advice on thinking of gold a currency makes a great deal of sense (though he is very bullish gold). Unfortunatly this means that gold does not build value by itself like a corp but changes in price relative to other currencies as macro trends make some monies appear stronger or weaker. During the inflation driven bear market of the 70's gold took off as it was the strongest currency around but durring the 80's it took a major hit when the economy strengthened. Once gold re-priced to a lowwer value it practically road rails flat or slightly down for almost 20 years!

Gold can be a good/great hedge when you think the economy might take an ugly turn like it just has but might be a losing bet if you are thinking of holding some over the course of decades. If you want an element of really long term stable growth in your portfolio I would look at TIPS or FDIC insured CD's.

If you really want metals/commodities I like things like lithium or palladium because I see possible increased demand for the metals in high tech auto and industrial applications. These new batteries and efficient engines could fundementally restructure the value of these materials over the next decade or so.
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