Precious Metals Advisory

The precious metals have all been proven performers and most pundits agree that they have been a great store of value.

Gold has always had a mystical allure through the ages and is highly coveted as a medium of exchange, for jewelry and industry; perhaps no other substance on earth has been so desired, celebrated and fought over.

Silver, the most reflective metal has been used in coin, jewelry and industry throughout the ages. In the ancient world it was a symbol of strength and beauty. Today, demands by consumers have all but depleted the above ground supply.

The impetus for the increase in gold and silver is defined by the continued weakness of the dollar. While the U.S. will continue to keep interest rates artificially low, Standard & Poor’s revised its long-term outlook on U.S. debt to negative from a stable rating. In the past year gold has accelerated over 32% and silver prices have more than doubled! All of this while the dollar has fallen some 7.4%.

Whether a hedge against inflation or store of core value, experts all agree that holding precious metals is a wise decision and should be included in anyone’s portfolio.

Gold racing over the $1500 level for the first time is historic. Also momentous is over this past weekend an announcement which was made in late April 2011 that the University of Texas endowment fund had decided to buy and take delivery of $1 billion worth of gold. Since the University of Texas has about 20 billion in assets, a $1 billion gold allocation indicates approximately 5% of the school’s resources are now in gold.

While 5% may not seem a significant amount it is a huge increase as most standard institutional allotments have been around 1%. If other foundations adopt a similar posture the price of gold will most likely accelerate to an advanced level.

What percentage is best for you? We’ll be happy to go over strategies on an individual basis.