Purchase Gold For Your Portfolio

With inflation spiraling out of control, purchasing gold for your portfolio sounds like a no-brainer but sometimes when investments become too simple, a lot of people hesitate to act.

Major indexes experienced double-digit declines and investors took flight, this is the story of US stock market in the first half of 2008.

The bear market is a whisker away, not since 1970 have we witnessed such a poor showing for the Dow Jones Industrial and America went into a major recession back then.

There is no denying that Investors’ confidence drives financial markets. When people believe economic conditions are positive or at least recovering, they invest in conventional markets. Conversely, when sentiments turn bearish, people flock to precious metals and stocks associated with companies in such industries.

Lessons from the late 1970’s and early 1980’s illustrated how the prices of gold and silver soared to unprecedented heights and so did the prices of related companies. Current conditions are even more challenging and conducive to prices appreciating in the commodity sector.

Escalating oil prices and utility bills, free-falling stock market, housing collapse, mounting personal debts, specter of war in the Middle East… and the gravity of the situation becomes quite apparent.

To prepare for tougher times ahead, stop immersing yourself in debts, especially from credit cards. Banks are famous for tightening the noose when you are at your weakest. Next, you should adjust your portfolio by accumulating gold and silver over time, using weakened dollars.

For thousands of years, this is what astute investors have done to protect their wealth from being eroded by inflation. You will sleep better at night knowing your risks are hedged.

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Filed under Banking, Currency, Economy, Inflation, Oil

4 Responses to Purchase Gold For Your Portfolio

  1. Nothing beats inflation better than astute and rational investment. Logic infers that if all money chase after the same thing, the returns falls to mere cost of capital or below. During alternative cycles of bull and bears, many instruments gets in and out of favour. It is the courage to go into neglected, beaten down instruments where nobody dare to touch that can sometimes offer opportunities. Just my view.

    Anyway, nice blog you have here and I’ve placed a link to your blog. Cheers!

  2. market uncle -

    Thanks for your compliment and your blog is in my links page already.

    I agree with your point that beaten down instruments which nobody dares to touch offer lucrative opportunities. In fact, the stock market has a lot of attractive offerings currently but chances are they could be even more attractive later on.

    I don’t encourage speculation in commodities but it is important to slowly build up gold/silver assets in your portfolio. It is just a simple issue of economics.

  3. This inflatuion wil haunt us more in coming months . In some countries its close to 20% .

  4. well , oil prices can go upto $200 by next year . I wonder what’s going to happen after that .

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