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How to Diversify
Your Precious Metals Portfolio




It's never a good idea to put all your eggs in one basket.


With investment metals it is a similar situation. It's smart to hold multiple types of assets for the following reasons:

 1. It splits the risk: obviously you are safer holding a gold-silver-platinum, than just holding gold only

 2. You open yourself to new opportunities for growth: hold multiple types of investment metals and you might be in for surprising growth in some of them (for instance, they say silver and platinum are expecting even a higher growth than gold is looking forward to)


But what sorts of investment metals should you buy? Gold, silver, platinum...?

And in what proportions should you purchase? How much gold, how much silver?


Let's look at the how these metals are behaving on the market and what you can actually do with them:

 1. Gold is the most "convertible": almost everywhere in the World it is "fashionable", well-known and wanted by everyone, therefore buying and selling gold is technically the easiest among all metals; it is also the "king of precious metals" - certainly you cannot leave gold out of your portfolio!

 2. Silver is the cheapest investment metal: you can easier buy several silver bullion coins than you can buy a single ounce of gold; some call silver "the poor man's gold", still quite cheap, but harder to sell afterwards, because in some countries there are few dealers and not even banks will buy silver (but certainly is easy to buy and sell in the USA, Canada, the UK, Germany etc.) - conclusion is for those of you who have small budgets, silver is a great asset to own

 3. Platinum, as a third investment: if you have substantial amounts of gold - let's say after owning 100 ounces, you should consider buying platinum as well, because it's strongly undervalued, currently its price is somewhere near gold's price, but it is predicted that it will eventually surpass gold, because everyone is buying gold and because platinum is rarer; you should keep in mind, though that platinum trading will be rather difficult


For people with a smaller budget, especially those living in the USA, Western Europe, East Asia, silver is an adequate solution.


Let's show several examples for investment metal portfolios, based on amounts of cash in USD (keep in mind the date this article has been posted was prior to major inflation of the US dollar):

You have 1.000 to 3.000 USD to invest: 75 % silver, 25 % gold

You have 3.000 to 10.000 USD to invest: 50 % silver, 50 % gold

For budgets between 5.000 - 50.000 USD for investments: 25 % silver, 50 % gold

You have 50.000 - 100.000 USD for buying precious metals: 20 % silver, 80 % gold

For funds between 100.000 - 500.000 USD, try like this: 65 % gold, 25 % silver, 10 % mixed: platinum and palladium - as you wish

For funds for investments above 500.000 USD, split like this: 65 % gold, 25 % silver, 10 % mixed: platinum, palladium, precious stones (diamonds, emeralds, tanzanite, rubies etc.)


Notice the following fact in the precious metals and precious stones investment portfolio structure suggested by us:

 Those with little money should buy more silver, but still, some gold

 The more money you have, the more gold you should buy - after all, it is the primary precious metal

 But, if you have more funds, after having enough gold, then again, you should increase the amount of silver holdings - here's why: the price of silver is bound to rise more (as a percentage) than the price of gold and that's why the rich man should have as much silver as possible (but only after having a substantial holding of investment gold)

 Only diversify the portfolio, going into the 3rd category metal, which should be platinum, after you've already purchased the required amount of gold and silver

 Consider 4th and 5th category investment elements: palladium, diamonds etc., only in case you already have a good fortune of silver and gold, potentially the 3rd metal - platinum, already

 Consider buying diamonds and other non-metallic assets, such as rubies, emeralds, only after you've educated yourself on the subject (advantages, disadvantages, risks etc.) - these are highly risky to buy, very hard selling, but they occupy very small space and are ideal for those of you who own millions of dollars, euros - if you are a millionaire, precious stone investments can be a solution to stack huge fortunes away






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