…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.
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.
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.
…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.