Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • How We Are Different
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • Your Survival Guy
  • The Great Reset
  • My Rifles
  • Concentrate on Dividend Record and Compounding
  • Your Security
  • The Swiss Way
  • Dick Young
  • Debbie Young
  • Key West
  • Paris
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Your Health
  • Old Confederacy
  • Main Street Conservative
  • BLM’s Marxist Agenda
  • Ron Paul
  • Bank Credit & Money
  • Freedom Force

Your Portfolio Could Use This Investment as a Powerful Insurance Policy

July 23, 2020 By Richard C. Young

By Sara M Thornton @ Shutterstock.com

There are very few real counterbalancers available in an asset bubble like the one being blown today by the Fed and other central banks.

One investment I have found to be reasonably reliable as a counterweight insurance policy is precious metals, specifically gold and silver.

Is there downside risk in buying metals? Of course. Here’s how I previously explained that risk:

Relative to gold, silver is cheap. The higher the gold/silver ratio, the cheaper silver is. The historical gold/silver ratio has been 15:1. Today, it is 53:1. Central banks do not own silver, which they could dump on the world market to depress prices. This is a big plus for silver. Silver trades at about $32/oz. The structural low is about $10/oz. There conceivably is a significant downside risk. My strategy is to pick away slowly over the next few years, hoping that I’ll get an average price on my purchase well below $32/oz. Who knows? Silver and gold are insurance policies that I hope I will not need. What I buy, I will not sell. And I am buying with the hope that the price of my insurance will decline, not increase. Year to year, I am a hesitant, reluctant seller of any investment.

Today, the gold/silver ratio is over 90.

I want you to think of the silver and gold in your portfolio as an insurance policy. If it goes down, you may be better off because the prices of your stocks are going up.

If you would like to learn more about how Richard C. Young & Co., Ltd. views precious metals as a portfolio counterbalancer, click here to sign up for our monthly client letter. The letter is written by my son, Matt Young, who has led our family-run investment counsel firm for over twenty years.

Originally posted on Young’s World Money Forecast.

Related Posts

  • A Guaranteed Investment
  • Can You Live Forever? How about Your Investment Portfolio?
  • My Answers to Two of the Most Common Investment Questions
  • My 2018 Investment Perspective
  • Author
  • Recent Posts
Richard C. Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
Latest posts by Richard C. Young (see all)
  • Warmongering Firestarters Victoria Nuland and Samantha Powers Back - January 19, 2021
  • Dick Young’s Safe America: Chapter 1, Part I - January 19, 2021
  • RCY’s Brand New Investing Program – 100% Swiss - January 19, 2021

Dick Young’s Must Reads

  • Globalism Has Made America Dependent on Foreign Countries
  • Gold/Silver Coins No Longer Allowed in Safe Deposit Boxes
  • Does Big Government Create Poverty?
  • To Me There Isn’t a Better Way to Live
  • “The Goal”: Strong Families, Resilient Faith, Thriving Middle Class.
  • Progressive Liberalism Has Dragged America near Ruination
  • Sweden – Not a Socialist Paradise, but a Model of Ruthless Capitalism
  • TAC, Embracing Old and Conservative Principles
  • Crushing Viktor Orban Victory Will Derail Soros
  • My Smith & Wesson Revolvers Home Defense Team

Our Most Popular Posts

  • The Recklessness of Arnold Schwarzenegger
  • The Stock Market Is About Money Flows Not Politics.
  • The Coordinated Attack on Free Speech
  • Why Was the U.S Capitol Left So Vulnerable?
  • Who Are Those Urging Violence?
  • Dick Young’s Safe America: Chapter 1, Part I
  • Insurrection Was the Furthest Thing from Trump’s Mind
  • Who's Inciting Violence: Trump or Democrats?
  • Smith Family Robinson in Live Free or Die, NH
  • Cancel Culture, the Great Purge, Double Standards

Disclosure

RSS Youngresearch.com

  • Smith Family Robinson in Live Free or Die, NH
  • Dick Young’s Safe America: Chapter 1, Part I
  • Whether Through Audacity or Ignorance, Stock Fundamentals Are Being Ignored
  • Happy Martin Luther King Jr. Day!
  • The Fed is Sacrificing Retirees to Save the Banks
  • Jim Simons’s Renaissance Technologies vs. Internet Forum Traders
  • February RAGE Gauge: Americans Focusing on What’s In Front of Them
  • Biden Plans to Spend Trillions More on COVID-19 Stimulus
  • There’s Always a Way Forward for Americans Like YOU
  • Overtaken By Nvidia, Intel Fires Bob Swan

The Recklessness of Arnold Schwarzenegger

Warmongering Firestarters Victoria Nuland and Samantha Powers Back

Smith Family Robinson in Live Free or Die, NH

Dick Young’s Safe America: Chapter 1, Part I

RCY’s Brand New Investing Program – 100% Swiss

Swiss Francs, a Store of Value

Copyright © 2021 | Terms & Conditions | About Us | Dick Young | Archives