Fox Business writer Michael Estrin wrote an article yesterday for the Personal Finance section, The Lowdown on Buying and Selling Silver, in which he quoted me saying how silver, like gold, is known as money and can be used as a hedge against economic uncertainty. Below is the section I was quoted (at the end of the article).
An Invaluable Hedge
While many investors view silver as a solid way to diversify a portfolio’s asset allocation, some investors view silver and other precious metals as an invaluable hedge against an uncertain economic outlook.
“The reason an investor would want to invest in silver is because, like gold, it is money and a hedge against future Federal Reserve quantitative easing and the unsustainable spending by Congress,” says Doug Eberhardt, author of “Buy Gold and Silver Safely.”
But according to Eberhardt, the downside of silver is it tends to be more volatile than gold. Because of that volatility, Eberhardt recommends that those who invest in previous metals do so with a portfolio that has 75% gold and 25% silver.
Many people may not realize this, but silver, despite its volatile year, is still up for the year 5.9%. But gold is up 20.5% thus far in 2011. Comparitavely speaking, the DOW is down 2.6%.
I can guarantee that most people reading this post have not been told to invest in gold or silver by their financial advisor the past 10 years. These advisors more than likely didn’t protect your portfolio with their “buy and hold” advice during the 2008/2009 financial crisis.
Did you know that gold finished the calendar year 2008 higher?
Did you know that 2011 will be the 11th straight year of higher gold prices? Silver has followed right along with gold, but yes, it is more volatile.
Related posts
About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.
