I feel that the trend is unsustainable and there is potential for at least a slowdown in the short term with a collapse also possible. I believe this because the traditional tools of monetary and fiscal policy makers are limited going forward as interest rates remain relatively low and taxes have also come down. In the meantime, the economic growth has been moderate at best and global growth has not been consistent despite the factors and policies supporting it. Therefore, I think that an inflationary environment can be predicted in the future. A traditional way of hedging this risk is to own precious metals and other hard assets.
Before starting to invest in cryptocurrencies, I had starting to accumulate some precious metals to hold for a hedge and storing values. I had targeted to get towards 5% of invested assets which is where I am finally at. These include only investable assets as some jewelry I have is not included as most has more sentimental value than their value in the metals they contain. However, as I have continued to read and create my own views of the future, I believe that some more allocation in the short term is warranted. Since I have gotten out of stocks and bonds in general, I still have some capital to allocate in the coming months which could land in precious metals. It seems as I have not been alone as of late when looking at prices.
Gold’s lowest price of the year has been around $1,230 which is where it started the year and has not turned back. This could be signaling a reversal of a very soft market for a number of years despite inflation continuing to remain tamed as per government metrics. However, we have seen a number of catalysts which seem to be supporting the price as demand as improved. It is said that a number of Central Banks are even buying some for their reserves in hopes of backing currencies and values. There continues to also be geopolitical tension in various parts of the world which could have gold become more in demand if conflicts arise. Lastly, the reversal of monetary policy calling for interest rate increases has been another fundamental aspect to consider. Gold leads most but the others have followed in tandem.
I decided to breakdown my portfolio by type of metal to see how well diversified it was. To my surprise, it was more spread than I have thought. These allocations are based on cost not value as I do not consistently value the assets with the fluctuations in the market as they are more stores of value and hedges for the long term. However, I clearly see that a good opportunity will be to add some more Silver into the portfolio considering its relative value and availability to buy right now. I will be looking to get some more over the coming weeks so will be watching some of the communities around Steem to see what they are buying these days!
It is a fun investment/hobby as my daughter has enjoyed seeing them as I always tell her that they will all be hers some day! I do not expect to post frequent updates on the portfolio but like the thought of providing more of my allocations in general to monitor them and compare with others as I get feedback. Right now Crypto and this make up 25% of my invested assets which I would not have imagined five years ago! It demonstrates how we must all evolve and adapt as opportunities arise!
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DISCLAIMER: The information discussed here is intended to enable the community to know my opinions and discuss them. It is not intended as and does not constitute investment advice or legal or tax advice or an offer to sell any asset to any person or a solicitation of any person of any offer to purchase any asset. The information here should not be construed as any endorsement, recommendation or sponsorship of any company or asset by me. There are inherent risks in relying on, using or retrieving any information found here, and I urge you to make sure you understand these risks before relying on, using or retrieving any information here. You should evaluate the information made available here, and you should seek the advice of professionals, as appropriate, to evaluate any opinion, advice, product, service or other information; I do not guarantee the suitability or potential value of any particular investment or information source. I may invest or otherwise hold an interest in these assets that may be discussed here.
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Good collection man. Look like you have sucha nice portfolio of pricious metal. Specially you have good counting of gold in average. 👍
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Good to have just in case!
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