Investing Secrets for a Tough Economy: 5 Tips

James Turk and John Rubino, authors of The Collapse of the Dollar and How to Profit from It: Make a Fortune by Investing in Gold and Other Hard Assets, give their expert opinions.

1. Prepare for the worst, hope for the best.

We’re seeing record levels of debt, the dollar collapsing on the foreign exchange markets, the highest crude oil prices we’ve ever seen, and inflation is starting to work its way through the system. The good news is that assets move from under valuation to over valuation and back again. When the stock market bubble peaked in 2000, tangible assets were recognized as being undervalued. Over the past few years, the value of tangible assets have increased.

2. Diversification is key.

We strongly recommend diversification into tangible assets as a way investors can prepare for the predicted collapse in the dollar. Gold has a key role to play in this diversification. If it’s convenient for you, you may also want to purchase some euros or other foreign currencies.

3. Minimize dollar-nominated financial assets.

What the individual investor has to do is to be very aware of all dollar denominated financial assets and attempt to minimize those. Minimize the amount of T-Bills that you have; minimize the amount of dollars you have in your bank account; minimize the amount of corporate bonds that you own that are dollar denominated and diversify into other currencies and into tangible assets.

4. Look for assets that maintain value.

The advantages of gold are numerous. It’s got an historical proven record of maintaining value over long periods of time. It’s the only money that is no one else’s liability. It’s recognized worldwide. It’s got clear recognition of value from local transactions to global transactions. So it’s a great asset for diversifying your portfolio. A gold coin in a bank safety deposit box will do a lot better than the Nasdaq or the Dow Jones Industrials and the Standard and Poors 500 in the coming decade.

5. Add gold to your portfolio.

The traditional Swiss banker point of view is that one should have 5 to 10% of their portfolio in gold, but it might be prudent for other people to have as much as 30% or perhaps even more in gold. You want to own gold in various types – gold coin and bars or just gold formed into familiar shapes. And they give you the most gold for the money. Also, in today’s market, we are still recommending early gold. When I say early gold, I mean these are gold coins minted from 1795 to 1834.

Call a Blanchard and Company, Inc. Account Executive today at 1-800-880-4653 to add gold to your portfolio today, or review our recommended gold buys.