Tag Archives: portfolio insurance

Physical Gold: “There Will Not Be An Opportunity Soon” – Guest Post

There is a feeling shared by many investors that something is not quite right in the financial world today. They do not know or understand exactly what is going on but the recovery that is supposed to be happening is not showing any visible signs of that being the case. Their neighbors are losing their jobs. Food costs and daily living expenses are going up even though there is supposed to be no inflation. The world is becoming a dangerous place. Countries are going into default. States and counties are under financial duress, pensions are underfunded.

In spite of all of the above, the stock market continues to make new highs and has not had a significant correction since it turned up in March of 2009. That is not natural in normal markets. Governments around the world keep printing an inordinate amount of money on a monthly basis yet there have been no positive economic effects produced from this activity. Closer examination of the economic numbers published by the government, especially those in the monthly jobs report and housing data, cause many to be extremely suspicious if not outright agnostic. Something isn’t right in the financial world and we totally agree. However, I do not want to get into a discussion as to what and why we are where we are today. Make no mistake about it, the world is facing a financial crises the likes of which have never been seen before. This has been discussed ad nauseum and is not the purpose here.

What is pertinent is now is the time to put your investment portfolio insurance in place. NOW!

Everyone should have a minimum of 10-25% of their investment portfolio insured. Insured against what? Insured against a falling bubble bursting stock market, geopolitical uncertainty, unrestrained government printing of currency, and a global collapse of the financial system with the traditional “bank holidays as seen recently in Greece”. Greece is already gone and Puerto Rico will be defaulting on bonds this week. Several other countries in the EU are soon to follow Greece. Chicago and the state of Illinois are in deep financial trouble as are many other states and counties.

The precious metals; gold and silver, have a 5000 year history of being the ultimate safe haven for wealth preservation. Gold and silver bullion and bullion coins held outside the U.S. banking system is the insurance that will provide the wealth preservation. Today the precious metals asset class is held in total utter contempt by the U.S. public and financial industry while at the same time being the most sought after asset by Europe as well as the eastern world ( China, India, Russia, Indonesia are buying inordinate amounts of gold and silver and have been for the last 4 years). The demand however, is still so strong in the U.S. that the sales of gold and silver Eagle coins have been suspended by the U.S. mint because of shortage of bullion supply. This contemptuous attitude will change very quickly as it is only a question of when not if. When it does change, it will be a sudden and immediate event that will not allow time for new passengers to board the train. The time to act is now. Noah did not wait until it started raining to build the Ark.

All the wealth held inside the banking system will be seriously impaired or destroyed. The ETF’s GLD and SLV used by the mainstream financial community as an “investment in precious metals” is a sham used only for the manipulation of the precious metals markets and does not eliminate the counter party risk. Inside the banking system includes all 401k’s, IRA’s not held by alternative investment custodians, mutual funds and stock portfolios at brokerage firms.

The precious metals asset class is very small and given the enormous amount of money that has been printed in the last 7 years; even a slight shift in demand will have the effect of trying to divert Niagara Falls through a funnel. The survivors of the coming financial crises will be those who have managed to preserve at least a portion of their wealth.

The only bullion available will be the in the ground proven reserves of the gold and silver mining companies. They will see an enormous revaluation that will make the dot.com bubble seem like a small pinatta party.

If this theory is TOTALLY wrong, the insurance portion of your portfolio may see a temporary loss but gold and silver have never gone to zero. If on the other hand this analysis is accurate; your portfolio may not only have preserved your wealth but greatly enhanced it.

We can help you get the proper insurance for your portfolio.

Don DiPaola
Golden Returns Capital – LINK
Don@goldenreturnscapital.com