George Soros warns that the devastating effects from Brexit could cause a financial collapse.
You have to protect your money.
This could be the most important time in your financial future because the world is getting more volatile by the day. Something, anything, could set off a financial tsunami of losses, just like Brexit did.
How do your protect your nest egg – and build wealth?
Diversification is key.
Let’s look at a couple investments that could help diversify your portfolio and more importantly, when the market tanks again, can help build your wealth.
Gold & Silver:
Everyone sees gold and silver as a valuable hedge. When the market goes down people turn to gold and silver to par losses.
We see what happened with the Euro and British Pound. Think the good old U.S dollar is stable – think again.
Gold is the place to be putting your money – as it has great value and should be in, what many experts are calling, a huge bull market.
Silver, like gold, is great. The biggest difference is that it’s more affordable than gold. You can buy a lot more of it…
Say you invest $5,000. That buys you less than 4 ounces of gold. But with silver, that same $5k gets you more than 250 ounces.
How to play it…
I recommend purchasing physical gold and silver. You can buy the heavy stuff, or buy coins – either way it’s important to have that locked in a bank safe for a rainy day. When push comes to shove, and if there were ever a political or economic disaster, gold and silver will be more valuable than any paper currency.
You can also invest in Jr. Miners. That have good upside potential if they’re actually pulling the yellow oil out of the ground. And because they’re junior companies they’ll be trading in a more affordable price range than say a major miner like Freeport McMoran.
Lastly you should also look into gold and silver based ETFs. These are great because they’ll move in tandem with their respective spot prices. And you can also hedge against your physical gold/silver holdings by purchasing inverse ETFs – that appreciate in value when the price of silver or gold goes down.
Speaking of ETFs…
When the market crashes – people are losing money hand-over-fist. It hurts. But smart investors put their money into inverse, leveraged ETFs because when the market tanks – these investments are going through the roof.
That’s the beautiful thing about ETFs is they can be used in any market situation…
The market tanks – buy a 3 times leverages ETF that appreciated in value when the Dow losses it – like DXD.
Think Silver prices are going higher – look into SLV.
Want to short the Euro – check out EUO.
Bottom line here…
When the market slides you need to be protected. Investments like ETFs are a great place to hedge and find returns. When the value of the dollar or the economic outlook is looking doomy, investments like physical gold and silver are safe places to put your cash because their value increases.
Diversity is key for any portfolio. Precious metals and ETFs are great tools for that diversity – and it doesn’t hurt that they provide excellent upside in bad times… and good.
Regards,
Ethan Warrick
Editor
Wealth Authority
