Why Diversify Into Precious Metals?

One of the most important lessons on investment that I read has always been about a “well-diversified portfolio”. When the topic of diversification pops up, I always remember that Miguel Cervantes quote on Don Quixote to “not put all your eggs in one basket” which makes a lot of sense to a wise investor. Wealth just like eggs, are delicate and it would be too risky to store it in single container, where there’s always a danger of losing everything.

When we talk about your IRA account, perhaps if you really want security, you should now start planning to spread your wealth into several good investments like precious metals such as gold and silver.

Forbes once said, “To be diversified, investor should have a percentage of their portfolio in gold…In general, people are poorly diversified, that when they look back to the time they lost some money, they rarely remember or cared of their undiversified positions in instruments that became sour.” According to Forbes, “Diversification is the best (and only) way to secure your wealth — and gold is a good ingredient for that.”

Diversification in precious metals like gold and silver takes into account risky possibilities and volatility of the market, providing some sort of insurance in your portfolio. Gold can keep its value (and even increase) at a national crisis, and this has been known in history.

Regardless of the structure of your current retirement plan, I can’t help but affirm the importance on having a couple of percentage on an IRA Gold account. Though the degree of a diverse portfolio depend on many factors such as  risk tolerance, investment knowledge, portfolio size, market, and other personal factors — the need for diversification is universal and should be considered by everyone planning their Individual Retirement Account.