Guns and gold: investing alternative to stocks and bonds

Guns and gold: investing alternative to stocks and bonds

Guns and gold: investing alternative to stocks and bonds

June 18, 2012 166 view(s)

It is no surprise that the global economy today is unsteady, but are investment experts suggesting investing in firearms and gold assets already? The answer is yes, according to a recent article in the IB Times. The article suggests that individuals worried about the volatility of the stocks and bonds market should begin investing in gold if they want a stable asset that is also easy enough to liquidate should times get difficult. Not just gold, the reporter went on to say, but silver too remains a solid choice for those that are looking for a truly alternative investment.

"German and U.S. bonds actually charge buyers interest rather than pay buyers interest. The euro zone's survival appears at risk and China's red-hot economy, the second-biggest in the world, is not so red hot anymore," the reporter pointed out; and it turns out that Germany itself may be facing larger problems than most had expected.

"Today [German Prime Minister Angela Merkel] warned the political world that Germany probably can’t take much more and tried to turn the spotlight on the U.S.A.," reported top financial publication Forbes in an article expounding upon the likelihood of economic collapse in the Eurozone.

Regardless of whether the euro collapse, plenty of other concerns plague those being driven to consider options such as precious metals that otherwise might have thought stocks or bonds were all they needed. Investment experts are suggesting that the time to diversify is now and choosing liquid assets is best. Those that sell well such as silver or gold assets have a consistent level of demand shown through history. The experts explained that collectible items including classic cars, fine art and similar luxury goods can be difficult to sell if the need should arise.

Whether investors will hear the call and begin investing in gold in earnest remains to be seen, but it is certainly interesting that trauma across the globe is finally driving many to consider the yellow metal.

Many of those just now looking to enter the world of precious metals are doing so because they have seen the problems emerging not just in the stock market, but also the banking sector. The Washington Post recently reported that further testimony to the US Senate from JP Morgan Chase & Co CEO Jamie Dimon has shocked plenty of economic observers.

"Dimon described to the Senate Banking Committee how the New York-based company’s $2 billion loss on credit derivatives stemmed from a unit of the business that helps invest part of the lender’s $1.1 trillion in deposits," the respected paper reported.

As one of the largest and most powerful banks in the United States, one would expect that, particularly after the series of financial crises from only a few years ago, losses at this level would be uncommon if not outright unheard of. The level of volatility found in what should be respected institutions is precisely what is driving so many investors to seek out alternatives.

What investment experts of many different schools of thought and investing styles seem to agree upon is that precious metals continue to remain a viable alternative investment because they do not have a value which correlates with paper-based investment markets. This means they do not sink with those investments and can help balance out a portfolio. In times like these, that is exactly the stability many investors are looking for.