Gold: Insurance For Prudent Investors

Precious metals reduce risk & preserve wealth

Responsible homeowners and landlords insure their property against fires, floods, and violent storms. Sensible motorists insure their vehicles against inadvertent fender benders and costly collisions. Prudent investors own precious metals to protect financial assets from currency debasement, stock market meltdowns, and economic collapse.

Reducing risk and avoiding financial loss is the purpose of insurance. Precious metals is the insurance plan that everyone needs – especially now. Like insurance, precious metals safeguard financial assets, reducing risk and loss. This is because gold is the most negatively correlated asset to financial assets.

Gold Insurance for Prudent Investors | Correlation to US Equities

They also offer peace of mind and preserve wealth during financial storms, unchecked debt expansion, and unforeseen political and geopolitical events – similar to what we are facing today.

Most people view gold, silver, and platinum as commodities, and speculators trade the metals for short-term profit. Savvy savers, on the other hand, own bullion bars and coins as a long-term financial safe haven because they regard gold and silver as money and the foundation of the monetary system for thousands of years.

When assessing risk, each homeowner, auto owner, and precious metal owner must determine if they’re adequately insured to protect their property, possessions, and financial assets. The amount of coverage required depends upon one’s short- and long-term investment objectives, financial circumstances, and comfort level.

Most home and business owners insure the contents of their property as well as the structure. Some auto owners carry only liability insurance on older models, while others prefer full coverage, especially on rare collector cars or newer vehicles with outstanding loan balances.

As with homeowner’s and car insurance, individuals, and institutions who acquire precious metals must decide how much bullion they need to secure their financial portfolios during periods of inflation, deflation, stagflation, and hyperinflation. The greater the perceived risk or potential loss, the higher the proportion of bullion needed.

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Disclaimer: The information contained in this article provides a general overview of subjects covered, and the expressed personal views and opinions are not intended to be taken as advice ...

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