By that I mean people who don’t buy mutual funds or stocks or anything but usually keep their money in cash are seeking safety in gold. It could also be that people have grown weary of invisible electronic investments that send their money off somewhere to potentially vanish. With the Dow falling so hard, and with people losing their life savings to scumbags like Bernie Madoff, people are realizing that if you can’t hold it in your hand, it can potentially vanish.
Real physical gold in your own possession is the safest and best way to invest in gold. The proof is in the demand.
Recently I sold my position in GLD (the gold ETF) and transferred it to actual allocated holdings of bullion.
What’s curious is that normally, one would expect that actually holding a real item of actual value would have more of a gut-feeling of tangible value, and just seeing numbers on a screen would feel less ‘real’.
However, I guess because I am a child of the Internet age, or something. I have found that I feel, on a gut-level, that I am less wealthy, because the numbers on the screen of my brokerage account is lower. Even though now I actually hold more real assets, and the actual exposure of my portfolio to asset price changes has not changed.