Precious metals are a popular asset class with some people. Gold is the most well known, but so is a silver investment.
Silver tends to ride the valuation coat tails of gold.
But, when gold has a bubble, does that mean silver will too?
Bubbles
Bubbles will always happen to asset classes.
The key is not buying into any single asset without knowing it’s role.
It’s role in our goals and not buying into an asset out of fear or out of greed.
Characteristics of Silver
Silver Investment bulls tout it as an alternative currency class to Gold.
It has 2 characteristics similar to Gold
1. It’s not a fiat currency
2. It has intrinsic value
For those 2 reasons, people who like the idea of owning a silver investment feel they justify it being incorporated into a portfolio.
Precious metals can have a place in a client’s portfolio if they want it. It’s usually bought as a hedge against inflation.
But, it rarely would it make sense to become a holding in any percentage higher than 1 to 5.
Next Step
Ready to take the next step and work with a fee-only CFP? Reach out to schedule a Discovery Meeting to learn more.