Gold & Silver have fallen dramatically from its highs.
Don’t analyze the reasons for the fall. It's normal for any fast-growing asset to fall like this. Instead ask ….
Can I use this opportunity to increase the allocation to gold & silver?
I have personally never liked gold much. But the world that we are currently live in is not the same. When things change, we should change too.
We are in a world that’s engaged in CAPITAL WARS. It's that time when countries use money, financial systems, resources & economic leverage to attack its rivals or protect its national interest.
During times like these the world order changes & the best part is there is no direct military combat. Tankers & Troops are replaced by
- Tariffs & Sanctions
- Resource restrictions
- Technology access
As learnt from history during times like these there is one asset that outshines. Take 1930, 1970, 2008 or 2022.
GOLD
It offers hedge against uncertain trade & geopolitical uncertainties and there are no counter party risks. Hence for all you know the current fall can help reduce your cost price & enhance portfolio returns.
Along with gold, in general industrial metals, oil & gas tend to do well. You can therefore look at silver too.
We are looking at increasing the allocations from 10% to 15% of the portfolio.