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Why Should You Own Gold and Precious Metals?

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Investment experts have long-recommended portfolio diversifications and that 10 to 20 percent of an investor’s assets such be devoted to tangible assets such as gold, silver and platinum bullion and bullion coins.

The value of the U.S. Dollar declined more than 30% from 2001 through 2005, and due to the massive increases in U.S. government deficits totaling trillions of dollars, the cost of a prolonged war against terrorism and a massive trade imbalance, this trend may just be the beginning. Which means the U.S. Dollar and any investments pegged to the U.S. Dollar could be worth less every day. Though, gold, silver and platinum are held and traded throughout the world and their true value or purchasing power is not solely or directly dependent on the falling fortunes of the U. S. Dollar.

Therefore, precious metals can be used for protection against a falling U.S. Dollar. As the value of the U.S. Dollar declines, gold and silver prices and the value of precious metals expressed in dollars, increased.

Today’s financial markets are increasingly at risk from terrorism, political instability and war. Financial markets can be closed down and remain closed down, for extended periods of time during these events. As terrorism incidents continue to increase around the world, it is not unreasonable to expect further and potentially more severe, disruptions in financial markets, banking and commerce in the future.

Precious metals can produce impressive investment returns even when returns from stock, bond and other paper investments decline in value or evaporate completely.

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