Gold, Silver, PGMs — How to Build a Physical Portfolio
Mark Yaxley: Gold, Silver, PGMs — Stock Market Suffering, How to Build a Physical Portfolioyoutu.be
Precious metals like gold and silver are commonly viewed as safe-haven assets, and in today’s volatile times they can offer protection from turmoil in the broader stock market.
Speaking to the Investing News Network at the recent Vancouver Resource Investment Conference (VRIC), Mark Yaxley, managing director at SWP, an offshore precious metals dealer and provider of vaulting services, suggested that now may be a good time to for investors to start building or adding to a physical precious metals portfolio.
“My opinion is we are in the early stages of a market collapse — not for precious metals, but for the equity market, for the stock market. I think that we’re going to go into a recession, (and) within the next 30 days to six months we’re going to see something pretty severe happen in the market,” he said.
“Generally what will happen with gold and silver is exactly what we’re seeing right now — the price will go down initially with the equity markets, and then it will go up in a pretty dramatic fashion,” Yaxley continued.
He noted that in 2008 gold fell 17 percent over the course of five weeks in a big pullback that upset investors. However, then it rose 140 percent over the next three years, while silver jumped 400 percent in that time.
“I think we’re going to see something similar happen. I don’t know how severe the market crash will be obviously, but depending on how severe it is and how long it is, that will really drive the prices up again,” said Yaxley.
Speaking about how to build a physical precious metals portfolio, he said that SWP’s general guideline is to allocate 60 percent to gold, 30 percent to silver and 10 percent to platinum-group metals.
In terms of tips for what products to buy, Yaxley suggested sticking with well-known options as they tend to have better resale value. He also recommended paying attention to premiums, noting that people who are just starting out should be looking to get the most metal for the least amount of money — typically the best way to do that is by buying larger products. For example, in most cases someone looking to amass 100 ounces of silver would be better off buying one 100 ounce bar versus 100 coins at an ounce each.
Watch the interview above for more from Yaxley. You can also click here for our full VRIC playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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