Putting 10% to 15% in precious metals
I keep reading that and it seems too low to me. I can understand having cash in case of deflation/emergency, but why only 10%-15% in precious metals, given the Bernank having to buy treasuries as China walks away, and trying to inflate our way out of debt? Does anyone else have a problem with such a low percentage? What else besides maybe owning a home would someone want to be in, given the low interest on fixed income, stock markets are overvalued, and central banks of the world inflating to handle debt problems or keep their fx level from rising?
PM’s are transition metals. If you are currently transitioned into farmland (or whatever you feel represents lasting wealth), 10%-15% is fine. If you need a place to park $ until you find a home for your wealth, 10% is WAY too low. Just my 2 cents worth.
I agree it’s transition and there will be a time to sell. I have two homes – one paid for and the other refinanced at 4.25% for 30 years. I also have cash in case SHTF and there are bank runs, l lose my job, etc. I also think 15% is way too low and am trying to get my % higher. My retirement is essentially cash and can be confiscated/taxed/forced into treasury trash. The way I see it is, if we have deflation or somehow the currency survives largely intact, my retirement and inheritance will be fine. If not, I will need PMs to transfer my wealth to the other side as my dollar assets turn to dust.
I definitely agree PM’s will serve as transition instruments. I have about 35% of my assets in silver coins (American Eagles). Who knows when silver will finally break through 34-35. Probably not until after the election. Accumulate on the dips. Hold it for purchasing farmland and essentials one day.
Keep some in cash in the event of deflationary forces taking over.
That is what I am thinking in terms of % of assets in PMs and having cash. I am also heavy silver but want to beef up my gold to 50% of PMs. I keep thinking that the Europe solvency issues could lead to panic buying at any time. It’s surprising to me that they haven’t already done so, given the math behind the major debt problems of the world and impossibility of ever being paid back. The great thing about PMs is that even in a deflationary environment they can rise due to counterparty risk of paper assets.