A Potentially Risky Silver Acquisition

I was recently introduced to my neighbor’s brother who is an ardent investor in precious metals. As we discussed the excitement around the current metals market, he shared that just prior to March 2020 he had invested what constitutes the majority of his life savings in silver. He acquired his metal when the spot price of silver was $12.08, and was understandably excited about the performance of his investment, which had essentially doubled in value when measuring against silver’s current spot price. I congratulated him on his success and as the conversation progressed I told him what we tell all of our investors, we recommend no more than 20% of your personal investment portfolio be invested in precious metals.

The amount of risk an investor is willing to take (Risk Tolerance) is very personal, and I sincerely wish my new acquaintance all the best with his investment results. I am in the business of helping people acquire physical precious metals and I am tremendously passionate about the benefits of investing in gold, silver and platinum. However, putting your entire life savings in one asset category, be it stocks, bonds, real estate, precious metals or other investment categories, should be approached with caution. It is well known that precious metals can play a very important role in an investment portfolio. It may prove wise to heed the idiom: Don’t put all your eggs in one basket.

Photo: Michelle Garres | Unsplash