I have long advocated having at least 5-10% of your portfolio in physical precious metals. Since early 2001, that has turned out to be profitable advice, as gold outperformed most other asset classes.
Given the state of the US and global economy, I believe it is more important than ever for investors to own gold and silver as a portion of their portfolios. Inflation, depression, and sovereign default are all possible scenarios I see on the horizon. I believe that precious metals will perform better the darker the economic storm-clouds become. If we see the collapse of the international dollar system, then gold may be the only viable currency for global trade.
I firmly believe that gold and silver are your best insurance policies in today's turbulent markets. They are the classic hedge against inflation and can provide a cushion of savings in even the most extreme economic environments. There is not a country on this Earth that doesn't demand gold, and this effect is especially pronounced in booming Asian giants China and India.
Related stocks and ETFs: SPDR Gold Trust (ETF) (NYSE:GLD), Market Vectors Gold Miners ETF (NYSE:GDX), Newmont Mining Corporation (NYSE:NEM), AngloGold Ashanti Limited (ADR) (NYSE:AU), Harmony Gold Mining Co. (ADR) (NYSE:HMY), Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), Barrick Gold Corporation (USA) (NYSE:ABX), NovaGold Resources Inc. (USA) (Public, AMEX:NG)
Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.