Precious metals can help provide stability for any portfolio!
When a government prints additional paper money, it causes the value of their currency to decrease. Since the United States Federal Reserve Bank has the ability to print money at any time, and in large amounts, it is the main source of inflation. The recent increases in the price of gasoline and groceries are a direct result of printing money, yet the government continues to run the printing presses, at an alarming rate. The demand for precious metals will typically increase during a down economic climate when the return on stocks, bonds, and real estate do not keep up with the rate of inflation.
Many financial professionals recommend diversifying a portfolio by placing a minimum of 5-10% in precious metals. Obviously there is not set amount for everyone’s portfolio, as each situation is unique and no one can recommend any specific percentage without knowing all the facts.The IRS does not restrict the amount of precious metals an individual can place in an IRA, so individuals can choose to allocate as much as they choose in precious metals. Advisors are starting to agree that the most effective way to protect your retirement portfolio, preserve long term wealth and reduce risk is to invest in assets that have low correlations to the mainstream financial markets. This protects you from substantial losses as a result of economic uncertainties such as inflation and a depreciating U.S. dollar. Physical gold and silver offer diversification, protection and substantial profit potential for any retirement portfolio.