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My Apologies

I recently made some comments to a journalist that was asking me questions about retail client behavior when it came to purchasing precious metals. I said that  about 25% of the retail off-take in physical metals, in the US market was a result of what I continue to believe were the result of doomsday scenarios propogated by a number of newsletter writers and dealers, that make their living in selling or recommending hard assets. To be clear, I have always suggested a portion of one’s portfolio should be allocated to hard assets, with the caveat that the percentage of allocation should be reviewed regularly in the context of any balanced portfolio. In this context, we try and give a balanced view on the metals markets, from a variety of contributors, some bullish some bearish, because education is of primary importance when it comes to investing in any asset. My interview was 30 minutes and a total of 25 words were quoted, but none the less, I take exception to sensationalist writers and doomsayers, which suggest the end of world scenarios and aggressively tout gold at $1,900 as a sure fire bet to see $5,000, but remain mute when gold drops by $700. I have arguments that in a doomsday scenario, gold would be a worthless asset, but that’s for another day.  The language I used in describing clients that are swayed by these talking heads was offensive, and for that I sincerely apologize. I get frustrated when these talking heads only see some horizon number, and scare investors into an asset class.  My context is to try and explain why metals are viable in a portfolio, from a common sense point of view, given technical and fundamental reasons. Everyone has their own personal reasons for owning gold and it was disrespectful on my part to categorize their motives negatively. Again, I apologize for my frustration  and dismissive tone.

By Peter Hug
Global Trading Director
Kitco Metals Inc



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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