TIP OF THE WEEK – Opportunities to buy precious metals for procrastinators.

Opportunities to buy precious metals for procrastinators.

Jason Brizic

May 6, 2011

You should have 20-30% of your non-house net worth in precious metals.  They are a hedge against massive price increases and hyperinflation.  I consider price increases of 10-20% per annum to be massive.  I consider hyperinflation price increases above 20% per annum.  Entrepreneurs can’t calculate in an environment where prices increase above 20% per year.  The division of labor begins breaking down in the 20-30% range.


The precious metals (gold and silver) are a hedge against massive price increases.  They are not a hedge against low inflation.  Just look at precious metal prices from 1980 – 2000 for confirmation.  Silver took a beating this week.  It was down 29%.  Gold lost 6%.  Silver is more volitile than gold.


I think you should use 80% of your precious metals money to buy gold coins from your country’s mint.  Buy 1 ounce and tenth ounce coins.  Buy 20% silver coins.  Buy 1 ounce silver coins and junk silver coins.

I think gold under $1,400 per oz. and silver under $30 per oz. will be good buys.  Don’t buy gold and silver ETFs like GLD and SLV if you don’t own any physical coins.

Buy from where ever you are comfortable: local coin dealers, EBay, Amazon.com, or my favorite www.apex.com .

For more tips, go here:

http://www.myhighdividendstocks.com/category/tip-of-the-week

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Published in: on May 6, 2011 at 9:31 pm  Leave a Comment  

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