With global economies in flux, investors should brace their portfolios with greater investments in precious metals, according to a new report from Bullion Management Group Inc.
In its report, the Toronto-based firm warns that current fiscal and monetary policies will have global setbacks. That uncertain global economic forecast will include continuing issues related to sovereign debt, currencies, hyperinflation and bonds, Bullion Management Group predicts.
To prepare, Bullion Management Group, which works with investors to buy and store gold, silver and platinum, urges investors work to counter those trends by increasing their bullion stakes.
Bullion investments should always account for 10% of an investor’s portfolio, Bullion Management Group states in its report. In current economic conditions, that percentage should be higher.
Where should investors go to find the funds to make those investments? Through the cash part of their portfolios, the group said, such as checking and savings accounts, term deposits and guaranteed investment certificates.
Bullion Management Group’s advice comes as bullion investments, particularly gold, have reached a new fervor in current economic conditions. But fear of a gold bubble should not dissuade investors, the group said, as bullion markets are still relatively small compared to other markets.
“Even after the past ten-year rise, the total value of all gold bullion in the world is but a fraction of the value of the $200 trillion currency-based financial asset market,” Bullion Management Group Chief Executive Nick Barisheff said in a statement.