Vista Financial Advisors

Investing in Tomorrow. Today.
Vista's Investment Strategies

Precious Metals

We know that at any point in time, events can occur that send the investment world and our sense of security reeling.  Sometimes these events are sudden and their impact is almost immediate such as major terrorist attacks or nuclear/war related concerns.  There are also very real developments in our economy such as increasing debt levels and possibility of default by major corporations, derivatives risk and potential effects of long-term declines in real estate that could have far-reaching consequences for our economy and even our currency.

None of us knows what will happen tomorrow.  The turns of events mentioned above, while negative, tend to be the very catalysts that often drive the price of gold and other precious metals upward—often quickly and severely.  Much like investments in energy that are designed to protect you against inflation, investments in this category are designed to protect your portfolio and your net worth from panic.  Although precious metals by themselves are volatile, you can and should feel an additional degree of comfort and peace of mind if you have the proper percentage of your portfolio allocated to positions in precious metals (gold and silver) as part of the overall “catalyst diversification” strategy.  These are the assets people historically flock to when they panic.

Since we are all human, it will also be easier for you to avoid panicking yourself if you don’t have to watch your portfolio fall suddenly when such an event occurs.  A specific example of this effectiveness was clearly demonstrated during the terrorism shock period following the 9/11 attacks: Precious metals went up considerably. Should that type of event occur again, owning precious metals could offset the impact of a sudden decline in value of your US stocks. And the time to invest in precious metals is now, because, when you need them, you can no longer afford them.