248 THE BiG DROP
state of emergency. Every September it expires and this past
month, the president extended the state of emergency.
Using his emergency powers, the President could national-
ize the mining companies. The government might do that in
the extreme, but we’re not at the extreme yet. I don’t want to
be binary and say what will happen or won’t happen. What I
would say is it’s always a process. It’s a dynamic. Some things
might happen but we’ll see it coming. Again, that’s the impor-
tance of being a Strategic Intelligence reader. You’ll be the first
to know.9) Why do you recommend a 10% portfolio allocation
to gold. Why not 20% or more?
I’m not giving personal portfolio advice. I want to be clear
on that.
There’s no smart way to give individual investors advice
unless you know all their circumstances. I do have private in-
vestment clients. When you do something like that, you sit
down with the individual and you say, “Look, give me your
whole portfolio. Give me your net worth. Give me your family
situation. How old are you? What goals do you have?”
There’s a lot of work you have to do. I’m not going to tell
anyone, “You should have 10 percent. Or, you should have 20
percent.” 10 percent is just a general recommendation.
Gold is very volatile, so if you’re liquid, have a reasonable
size net worth and you want to lean into the trade a little bit,
there’s nothing wrong with 20 percent.10) Do you really believe gold could go to $7,000?
I’m very candid about the fact that I think gold is going to
$7,000. But it could go to $800 on the way. In other words,
it could go from the current level, around $1,200, to $7,000.
There could be some big jumps in between as this dynamic
takes off. I think it’s going to end up at $7,000, but I’m not going
to say to anyone it couldn’t go to $800 because it certainly could.