I often get asked “should I invest in gold?” my answer has always, will always, been true to the Wingonomics 7 Principle of Money and the Three Areas of Wealth:
Cash Flow (Getting out of Debt)
I don’t know if you are paying attention but since the great depression in 1932, the dollar has lost most of its purchasing power and as long as the government continues to print money it will soon be worthless but since the great depression gold has risen over 4,000% in value. In the past, the only time I thought about gold is when I see a rainbow and wondered if there was a pot of gold at the end. After experiencing years of market volatility, low interest rate market and inflation, I started to pay attention to precious metals, gold to be specific. I noticed gold has continued to make a surge as a safe haven investment for many investors. During my research, I have seen reports that have indicated Gold is at a 15-month high as the USD has hit a 15-month low and gold is expected to reach the $1,500 mark by the end of 2016. So, after seeing some positives in precious metals, I added a forth area, PRECIOUS METALS! Gold/Silver Bullion Coins in particular because it allows you to hedge against the dollar and partake in directly with the growth oppose to owning a stock with gold. I'm a big fan of gold but I really like silver. too. One of the primary reasons I like silver is because it’s consumed and the more we shift to an information age silver will appreciate because silver is used everywhere, such as cell phones, computers, etc...
If you are considering investing in precious metals be mindful of the following within your investment portfolio. Think of precious metals as an insurance policy for wealth insurance that can potentially stabilize your portfolio.
It should only be about 5% - 20% of your portfolio
It should be about a 2yr – 20yr investment
Own physical gold/silver and keep in storage or safe place