I agree, but I think keeping about 10% is better. I realize people look to metals as a hedge against inflation. I don't think it's very rational though. It's almost like saying people look to tulip bulbs as a hedge against inflation. I just don't think gold and silver are really all that useful.
Precious metals are finite. They cannot be produced in greater quanities that already exist. Tullip bulbs can be produced on a greater scale. The ultimate aim of a currency is that it cannot be reproduced to dilute the value of the currency.
That went zipping thru one ear and out the other. Olias agrees with Ivy League economists who most likely would also agree that precious metals are not a suitable hedge for currency devaluation.
Ha! Sorry, Even with this last purchase I made this week at $38 per oz,my average cost is still about $18.82 per oz...well below Donna's $25 per oz average. I've only been buying since June 2009 too.
=============== T-Neck; Interesting , a sand state MB, sure of a $100 /oz silver price Even more interesting, Mr Soros sold his gold & silver ''recently'' that WSJ [5-7-2011 ]article said.... Assume that WSJ got it right, on Mr Paulson still bullish on gold ?? I dont know anything about Mr Bass Hayman; but even if he bought the hi/fri[5-6-2011] & he may well have gotten a better price than siver hi/fri. The long term trend [1 yr,10yr]is still up.May low, frankly , is below APR lo/bearish.... That 55 yr old retiree maybe right in''dont believe correction will last long.'' However counter trends [corrections]may not 'last long'', but still can take out a huge %% . Not a prediction, that would be a better scale in buy if it did
Considering the mess the Ivy League economists have made of the economy, which they clearly have otherwise we wouldn't be discussing the best against a currency devaluation, I wouldn't pay them any attention.
More people should follow her lead. Keep a considerable part of your money outside of the financial system. Drain the system. Why should bankers get payed any more then someone who serves tables? I say it is time for the Donna Badach's to become the new elite...
Most of the empirical research I have seen (not academic Ivy League type that you so frown upon) suggests that commodities (incl precious metals) aren't actually the best-performing asset in a highly inflationary environment. So if the past is to serve as a guide, precious metals are good, but not the best. The beauty of owning them (talking my book a little, since I own quite a bit of gold) is that they're a good hedge for both non-linear extremes and that's unique. So owning precious metals is very much like being long a wide strangle: you have to pay, but it's good to own them wings.
Tell her not to worry. If silver drops to $10, government will bail her out and other big firms who got burnt by silver because they are too big to go bust.