The more I learn about how people actually build wealth, the more cautiously I prescribe diversification.

 

We’re sold index funds, but businesses and property are often what really move the needle.

 

Reliance on compounding returns from dollar cost averaging is awesome, yes. But what happens if you can see the future? Why not back yourself?

 

Take gold & silver, for example. No one’s shouting this from the rooftop, but during key times, it can perform well.

 

You’re a bit ‘crazy’ for investing in physical precious metals in NZ, though. 

 

So why Gold and silver?

 

  1. Inflation hedge,
  2. Money for a zombie apocalypse, or
  3. A speculative play.

 

With option #3, consider this: With commodities in general, and precious metals more specifically, sometimes the wheels within wheels start to resonate.

 

Secular movements (like the ‘fiat life cycle’) coincide with cyclical trends (share market melt-up, geopolitical shifts, and extremely high inflation).

In this episode with expert gold analyst Gary Savage, you’ll start to see that what’s happening ‘out there’, is also happening in the charts.

 

*Personally, I buy and hold precious metals (I don’t trade). Do your own research and plenty of learning if trading of any type is engaged in.