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November 22, 2010

The Merits Of Owning Precious Metals.

I have always advocated that investors hold at least 5 to 10% of their portfolio in physical precious metals — gold and silver bullion and coins. Tangible wealth, not subject to confiscation, registration, or unwarranted intrusion by government, should be a core component of any well-balanced portfolio.

I believe that physical precious metals are the ultimate insurance policy in today's perilous world. No other investment offers the same level of financial privacy, while eliminating counterparty risk. Physical precious metals do not depend on a court, a bank, or a stock exchange — their value is intrinsic.

I expect gold and silver prices to move much higher. Pressure is building in all parts of the world for solutions to the debt crisis that many nations face. The classic way for governments to deal with excessive debt is by debasing the currency, i.e. inflation. This has already started, with the U.S. Federal Reserve printing trillions of new dollars since 2008. Many observers think the world's only superpower is heading toward bankruptcy. And there is no one big enough to bail us out. This means inflation of historic proportions. Potentially sending gold prices higher than most hard money investor would ever dream.

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.
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