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-- Posted Monday, 20 April 2009 | Digg This Article | | Source: GoldSeek.com
In today’s uncertain world a diversified precious metals’ investment portfolio is perhaps a logical approach to the dangers of future devaluation of the US dollar and inflation from aggressive policies to counter the impact of the recession. In the late 1970s the world faced similar challenges, and the best performing asset classes were cash, oil and gold and silver. In the Great Depression of the 1930s only gold came out on top, and then silver followed. The core position should be in precious metals, perhaps 50:50 gold and silver. This can be held either as an exchange-traded fund or through Perth Mint certificates or as physical metal. Stock tip However, greater leverage to the gold price can be obtained through gold and silver stocks, but at the risk of greater fluctuations in value with the vagaries of stock markets, and higher downside leverage as well. As a gold bull market progresses, therefore, the greater returns should be obtained in equities. There is also a rotation from the larger market caps to smaller stocks as risk appetite increases in a bull market. One of the many reasons to think the present gold bull market is far from exhausted is that this rotation has barely started. It might be due to take off relatively soon as the long sideways consolidation of the March 2008 high in the gold price should soon be over. That would mean positioning now in major gold stocks could pay very high returns over the next year or two, and the bombed-out junior stocks have even greater upside from currently depressed levels. You can always wait to buy but acquiring large positions in the more popular juniors might then be impossible, except at much higher prices. Play safe That is it really. Precious metal stock prices are just too low, and monetary inflation prospects are outstanding which is what will really drive precious metal prices along with US dollar devaluation. Good luck – but this website takes absolutely no responsible for your decisions, and one final tip – NEVER EVER borrow or use margin for investment in precious metals. They are simply too volatile.
-- Posted Monday, 20 April 2009 | Digg This Article | Source: GoldSeek.com
Previous Articles by Peter Cooper
About Peter Cooper:
Oxford University educated financial journalist Peter Cooper found himself made redundant by Emap plc in London in the mid-1990s and decided to rebuild his career in Dubai as launch editor of the pioneering magazine Gulf Business. He returned briefly to London in
1999 to complete his first book, a history of the Bovis construction group.
Then in 2000 he went back to Dubai to become an Internet entrepreneur, just as the dot-com market crashed. But he stumbled across the opportunity to become a partner in www.ameinfo.com, which later became the Middle East's leading English language business news website.
 Over the course of the next seven years he had a ringside seat as editor-in-chief writing about the remarkable transformation of Dubai into a global business and financial hub city. At the same time www.ameinfo.com prospered and was sold in 2006 to Emap plc for $27 million, completing the career circle back to where it began a decade earlier.
He remains a lively commentator and columnist as a freelance journalist based in Dubai and travels extensively each summer with his wife Svetlana. His financial blog www.arabianmoney.net is attracting increasing attention with its focus on investment in gold and silver as a means of prospering during a time of great consumer price inflation and asset price deflation.
Order my book online from this link
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Gold & Silver Investment
