Scraps of Paper Be Damned

By MN Gordon, Economic Prism

Today we begin with several data points…

First, if you hadn’t noticed, gold and silver bullion coins are selling faster than boysenberry funnel cakes at the county fair.  January 2013 U.S. Mint bullion sales of the American Eagle 1-ounce gold coin increased 47 percent from January 2012.  In addition, American Silver Eagle (1-oz) bullion coins sold by the U.S. Mint rose 22 percent in January 2013 from January 2012.

Second, Olin Corporation, the biggest retail supplier of small-caliber ammunition, enjoyed a jump in pretax earnings at its Winchester unit to $16.5 million during the fourth quarter from $500,000 the year before.  By our rough calculation that’s an increase in pretax earnings of 3,300 percent.

Third, the S&P 500 just notched its best January in 16 years.  For the month, it (Read More….)

The Importance of Precious Metal Portfolio Diversification

Don’t put all your eggs in a single basket!

Precious metals are a great hedge against inflation, but diversifying it is essential for long-term financial planning and investment risk reduction, as

PrimeValues.org (precious metal investments advisor) advises us.

Here are the main reasons why you should and how you should diversify your precious metals portfolio:

1. It splits the risk:

every investment is risky, even if only slightly – by investing in multiple assets, you split the risk, thus becoming more secure on the long term.

2. More opportunities for growth:

if one of the metals in your holdings “jumps up” in terms of price, then you’ll rejoice gathering profits on it – silver and palladium are for instance, metals with higher potential for growth than gold

3. Gold is the most convertible precious (Read More….)