When they say 10-20% of assets in Precious Metals?
December 11, 2010 by
Filed under Silver Investment FAQ
Does assets include life insurance. Is silver a good investment or is it better to just stick to gold?
December 11, 2010 by
Filed under Silver Investment FAQ
Does assets include life insurance. Is silver a good investment or is it better to just stick to gold?
Life insurance is only an asset if it has a cash value, ie. whole life insurance. Term life is an asset to whoever your beneficiaries are. As far as silver and gold, if I just had to go with one, I’d go with gold.
Hi Jason, typically this refers to portfolio allocation for your investment assets which doesn’t include life insurance. All commodities are a good idea for investment for a hedge. Pick a commodity index if you want to add this to your portfolio.
When “they” say this, “they” are idiots. (No vetted financial model recommends more than a 5% allocation to gold…most are at 2%) Silver is a horrible financial investment. Slap 2% in GLD and 5% in DJP and forget about all that silly noise.
That said, they mean net liquid assets. Life insurance, despite what your agent tells you, is not an investment — it is an insurance policy designed to replace your income for a set period of time (usually 5-10 years in standard practice) in the event of your death.
Of course life insurance is an asset, but when do you expect to collect?
Gold is the standard of value. It has been for thousands of years. It doesn’t change. Silver is an industrial metal, used in photography and things. Gold is almost completely chemically inert. It’s value doesn’t change. If the price of gold changes, that’s because the value of money changes, not vice versa. Right now people are running scared and the usual rules are off. We’re having deflation. The price of gold should be going down because the value of money is going up, but people are bidding gold up, exactly the opposite of what should be happening. It’s pure fear, and I think there’s plenty to be scared of.
Stick with gold. It does not require so much storage space. No it does not include life insurance. Actually, life insurance companies are on the ropes because all of their investments are even worse off than yours.
once an investment is the talk of the town, it is typically past it’s prime to buy. gold/silver is certainly the talk of the town and you would want to do a bunch of research to make sure it is still a good decision.
Also, for the first 5 weeks of Pres. Obama’s time in office he was spend, spend, spend. While he was doing that he was further devaluing the dollar and making gold the way to go. But he has changed his tune this past week to “balancing the budget”, and if that is in fact the course that is taken gold will most likely not continue to increase in value.