Why I Put Almost All My Eggs Into Precious Metals

“I have put almost all of my eggs in one basket – precious metals, energy and agriculture – with the bulk being in precious metals. These are diversified only in that they span bullion, geography and the range of very large to the very early stage junior exploration companies. A third of my investments are either in individual stocks (or their long-term warrants should they have any) of which many of the companies are  juniors and the other two thirds are in ETFs which invest in a range of larger-cap precious metals stocks.” Let me tell you why I thought it was a good idea at the time and still think it is. Words: 1100

So said Arnold Bock (www.FinancialArticleSummariesToday.com) in an article back in 2005 which he has revisited and which Lorimer Wilson, editor of www.munKNEE.com,  has edited […] for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. Bock goes on to say:

My rationale back then for doing what I did has stood the test of time and, I expect, will hold me in good stead whatever happens in the years to come. Let me explain why I put almost all my eggs in one basket and still think it is the only way to go. Also, please read my recent article on “Why Commodities are the Conservative Choice of Cautious Investors” here.

From my perspective the economic and political risks on the U.S. and  global horizon are even more serious than previously and, therefore, I still believe that the best way to preserve my equity, and secondarily, to grow it, is to invest in precious metals, energy and agriculture related assets. Other sectors like the stock and bond markets are currently either overpriced by historical standards and/or highly vulnerable and, as such,  the downside risk of precious metals, energy, agriculture (as well as select base metals) is far less than these alternatives.

To read more of this article please go here.