New Uses for Metal In your Portfolio
Things have changed a lot over the years. There was a time that a savings account and shares in ConEd was a prudent investment strategy. Now things have changed. Your portfolio must be more balanced, not all in a utility, or manufacturing or any other single market. In today’s market you have to be more diverse. The current financial situation of both the stock market and the currency markets should show you that. Metals, however, are proving not only to be a good way to diversify your account but a good place to put a large portion of your emergency fund money. With coin silver and gold bullion you have the basic same security as your savings account but have the benefit of growing much faster. The most important part are your metals are still liquid.
The Terms
It is a good thing to be very clear about terminology to help avoid mistakes. When you see coin silver or gold they usually mean US minted coins. For investment, the coins that pre-date 1934 and have high proof are the ones that can truly be considered investment. There is also gold bullion. That can also be the aforementioned coin or small bars that have been marked by the minter. The term goldmoney is a bit more confusing. One of the hardest parts of using gold is that it is hard to break into fractions; goldmoney does that. It works on a similar principal of a mutual fund in that each dollar you invest is converted into gold. When you cash it back out it is the same process in reverse. Those are the basic terms you will need to know.
Now any financial advisor will tell you to keep 15%-20% of you assets liquid, meaning they can be converted into cash quickly. Well, anything in your portfolio can be sold quickly but at what cost? Stocks can be under valued one week and over valued the next. You need to have some assets that maintain their value and can be gotten to quickly during an emergency. This is why you must have an emergency fund
Your emergency fund is the liquid part of your account that can be quickly converted to cash. It is not what you would use to by a new refrigerator but it is what you would use if you found yourself out of work for six months. For this, you need to have your money in metals in a company like SwissAameria.
They work in a very similar way to gold money. You get to invest money in coin silver or gold or even gold bullion. However, rather than keeping it under your mattress or safe, they will hold it for you. As a reputable company, this works well for you.
When trying to invest in metals there are a lot of pit falls. One of the biggest is counterfeit coins from South East Asia, especially China. There are also people that pedal “gold dust” that turns out to be brass shavings. Other companies try to sell what SwissAmerica does but in reality never own the gold or coin silver at all. That is why you should save your investment monies for a reputable firm.