There are many reasons why pension fund managers, private investors and even governments are adding bullion to their portfolios. Perhaps the most important reason for this shift is that bullion provides superior insurance in times of financial uncertainty.
Today, financial uncertainty is exacerbated by governments that have massive debts and debase their currencies through unbridled money creation. Under these circumstances, a fully diversified portfolio should included gold, silver and platinum for both wealth protection and growth.
Portfolios consisting of stocks, bonds and cash are not fully diversified, as correlations between these asset classes have been increasing since 1969. Fortunately, one asset class – precious metals – is growing more negatively correlated.
Barisheff discusses gold’s purchasing power and the decline of currencies; why gold is no one’s liability; risk management; supply and production; demand (from central banks, the public and large funds); silver as a monetary metal; silver as an industrial metal; silver supply and demand; platinum as money; platinum’s supply and demand fundamentals; and platinum as a leading inflation indicator.
Precious metals are the ultimate portfolio protection. “The only asset class that is better than gold as an inflation hedge,” says David Ranson of Wainwright Economics, “is a basket that includes silver and platinum.”
To read Nick Barisheff article: Why Gold, Silver and Platinum?
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