Thursday , 26 December 2024

Gold Is the BEST Way To Reduce Portfolio Risk & Loss – Here’s Why

…Reducing risk and avoiding financial loss is the purpose of insurance. Precious metals is the insurance plan that everyone needs – especially now. Like insurance, precious metals safeguard financial assets, reducing risk and loss. This is because gold is the most negatively correlated asset to financial assets.

Gold Insurance for Prudent Investors | Correlation to US Equities

They also offer peace of mind and preserve wealth during financial storms, unchecked debt expansion, and unforeseen political and geopolitical events – similar to what we are facing today.

Most people view gold, silver and platinum as commodities, and speculators trade the metals for short-term profit. Savvy savers, on the other hand, own bullion bars and coins as a long-term financial safe haven because they regard gold and silver as money and the foundation of the monetary system for thousands of years….The amount of coverage required depends upon one’s short- and long-term investment objectives, financial circumstances and comfort level…The greater the perceived risk or potential loss, the higher the proportion of bullion needed.

2008 Performance and Recovery
Current Investment Reality

Some savers are satisfied holding 5-10% of their financial assets in physical gold and silver. Those who perceive a greater risk or loss—and desire a higher comfort and security level—prefer a higher percentage, ranging from 10-20%. Below is a comparative performance table based on holding 5, 10 and 20 percent in gold since 2000.

Allocation Mix
Portfolio Performance and Key Metrics

…The best insurance is the kind you hope you never need to use. If that’s the case, bullion can provide peace of mind and wealth preservation for posterity. Like life insurance, precious metals can offer benefits to your family members and descendants for generations to come.

Editor’s Note: The above excerpts from the original article* have been edited ([ ]) and abridged (…) for the sake of clarity and brevity. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

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(*The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.)
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