Liberty Maven

If you want to protect yourself from the inevitable dollar collapse then gold and silver should be on your investment shopping list. Well, it seems that way. Don’t try to look at gold as a short term trade to make a few quick bucks, but rather an emergency rip cord to utilize as the overall economy freefalls to the ground.

Some suggest that we are in a deflationary period and gold is going to head down towards $600/oz. Others suggest that gold is an extreme buy at current levels with hyperinflation on the near horizon, suggesting it could go as high as $2500/oz. I’m no expert (far from it), but doesn’t it make sense to just own a percentage of gold right now in any investment portfolio?

Think of it like this. If you have $100,000. You put 25% into gold. You hold 50% in cash and 25% in other investment vehicles. If your dollars become worthless that means 75% of your portfolio becomes worthless. However, if gold does go to $2500/oz which could happen in such an environment you’d have over $60,000 worth of gold. Sure, your overall portfolio drops by 40%, but you’d still have your $60K soft landing.

Don’t wait for the government to bail you out. Bail yourself out with gold. For a very good list of 5 ways to own gold check out the Daily Reckoning’s white paper, “The 5 Best Ways to invest in gold“. Please keep in mind, this is a simplistic view and I’m no financial expert so take this with a grain of salt. It just seems it is what should be common sense during times like these.