Why do you need an Insurance Policy for your Investments?
First you should ask yourself; why do you have “Home Owners Insurance”, “Car Insurance”, “Life Insurance”, and any other insurance policy that you have?
You’re protecting yourself from a disaster in any one of the areas that you have an insurance policy for.
We live in economically turbulent time and not having an Insurance Policy for your investments is not something that I would recommend.
We live in a world where our money is not backed by anything, so there is no fall back if what many are predicting to happen, happens.
We have all heard the doomsday predictions that we are headed for an economic disaster where we could lose 50 to 95 percent of our investments that are tied to the dollar.
What if they are correct and we wake up to such a nightmare?
Look at what happened to the people of Greece!
Could this happen in your country?
Could this happen in America the place with the strongest Reserve Currency that practically every country in the world is tied to economically?
Very few people were prepared for the U.S. Housing Market Crash of 2008, but there were signs that very smart people ignored, and many of us woke up with 30 to 40 percent less in our retirement accounts than we previously had.
Seven years later and the Central Banks of many countries including the United States have been printing money without any regard or care in the world.
The United States has already seen what the results of that can be when we had to raise the Debt Ceiling for this country in 2011.
Here’s another thing to think about.
No fiat currency has lasted more than 30 years ever, except for one.
The U.S. dollar!
The U.S. dollar has been operating as a Fiat Currency since August 15, 1971, when President Nixon took the United States off the Gold Standard.
If you’re not worried about the possibilities of what could happen, you probably have been locked up in solitary confinement and just got out.
Whether you believe that an economic disaster is imminent of not, you should have an Insurance Policy for your investments.
How exactly do you take out an insurance policy on your investments?
Invest part of your portfolio in gold bullion.
That’s it, there’s nothing else that you have to do.
Think about it for a moment before you click away.
If there is an economic disaster that is on the horizon; why wouldn’t you want to protect yourself from losing a large portion of your investments?
If the U.S. dollar does indeed crash (which is what the smart people are predicting), the best decision you can make is to have some of your portfolio invested in gold.
Whenever there is turmoil in the stock market, and there will be if the U.S. dollar crashes, investors are going to put their money in precious metals, and the precious metal of choice is GOLD.
If you listen to Michael Maloney (Guide to Investing in Gold and Silver) gold will possibly sell for as high as $56,000 an ounce and silver for $9,000 an ounce if the U.S. dollar does indeed crash.
Others are predicting gold to sell for at least $7,000 an ounce.
We will use the lower of the two predicted prices of gold for our example.
What if you had a portfolio of $100,000 and you wanted to invest only five percent of it in gold. As of the writing of this article gold has fallen below $1100 an ounce, and is at its lowest amount in 5 years.
What if the prediction comes true and we all lose 50 percent of our investment portfolio? That would leave you with $47,500 in stocks and $31905 in gold.
Your portfolio took a hit, but not as big a hit if you had it all invested in the stock marker.
What if you were more certain than most that something drastic was going to happen and you increased the percentage of money invested in gold to 25 percent.
You would have $37,500 in stocks after the crash and $159525 in gold for an increase in your portfolio of $97,025.
Are you now beginning to see the value of having an insurance policy for your investments?
What do you think the sign below means, and how will it affect everything priced in dollars?
The above picture is of a billboard on the road outside of Bangkok Airport.
Why would the Chinese display such a billboard if they were not confident that the Yuan was going to become one of the world’s dominant currencies?
For years the Chinese have been buying gold mines because they know that any attempt by them to buy gold bullion would cause an increase in the price of gold.
China does not want to be chasing the price of gold, they want their currency which some feel they will back by gold, to increase in value with the increase in the price of gold.
If predictions about this are true, that would mean that 10s to 100s of billions of dollars would flow out of investments based in the U.S. dollar into investments based in the Chinese Yuan.
How do you protect your investments if the Chinese Yuan does become a World Reserve Currency?
If you’re going to buy gold bullion, why not buy it in small gold bars (1 gram, 2.5 grams or 5 gram bars)?
Smaller size bars will give you more security and leverage if those doomsday predictions do come true, and if they don’t; you will still have an asset that has out-performed any currency over the last 5000 years.
Click the following link to find out how you open a Free Gold Savings Account to purchase gold bullion and start an insurance policy for your investments