The Question and Answer Guide to Gold and Silver

I started investing in precious metals in 1987 at the age of 14. Early on, my position was simply an “insurance” position in physical metal. In 2004, after watching the Federal Reserve and Federal Government’s response to the 2000-2002 tech bust, I decided to increase my position in precious metals to a more significant 10-15% allocation. After seeing the response to the 2008 financial crisis (solving a problem of too much debt with even more debt), I increased my baseline allocation to 15-20%. This significant allocation served me very well from 2004-2011. However, from 2012 to present, precious metals have been hammered. Gold is down about 45% and silver about 70%. Most precious metals stocks are down 70 to 90% from their highs. Yet, when I look at the fundamentals, I see absolutely no reason to back away from my precious metals positions. In fact, I recently made a personal decision to commit 30-35% of my investment capital to precious metals. The purpose and timing of this book is to explain to clients, friends, and family why I’ve committed approximately 1/3 of my investment dollars to precious metals and precious metals miners.