Properly allocate-ing your IRA with Gold & Silver
If you’re looking for IRA Eligible Gold and Silver, Vermillion Enterprises has a wide variety of Gold & Silver to choose from. Providing you the resources to properly allocate your IRA with Gold & Silver.
We do recommend that you speak with your financial advisor or IRA custodian PRIOR to making any portfolio purchases. However, we also recommend that in addition to your portfolio precious metals, you have a personal stash as well.
Please check out our IRA Eligible Gold and IRA Eligible Silver pages for additional information. No collection is too small or too large. Which means. We buy and sell anything – from 1 oz. to 100,000 oz. Vermillion Enterprises is your Gold & Silver Source.
Allocate in Gold & Silver
Reasons to Invest in Precious Metals
Declining Dollar and Money Printing Policies:
History has proven that any decline in the value of the dollar correlates with a rise in the price of precious metals – such as gold and silver. While all other assets tend to follow the health of the dollar, gold and silver give your portfolio added protection. Precautionary in case the dollar goes south.
Inflation AND Deflation:
History has shown that gold not only responds positively during inflationary times but holds up against deflation as well.
Investing in precious metals isn’t a “Get Rich Quick” scheme. However, unlike stocks and bonds, the value of precious metals can never be zero. The point in diversifying is to ensure there is a safety net, at all times.
Portfolio Diversification and Protection:
When precious metal prices are up, you can bet on your bottom dollar. Your other stocks, bonds, and the dollar are LOW. Is your portfolio stock-heavy? All successful investors will tell you that when it comes to investing: Don’t put all your eggs in one basket. Balance your portfolio: Don’t be too top heavy, or you’ll topple over. Don’t be too bottom heavy, or you’ll never climb. Stay even footed, and you’ll always be balanced.
Safe Haven – Geopolitical, Economical, and Financial Crisis:
Precious Metals are “crisis commodities”. Because people worldwide rush to its relative safety. Especially when world tensions rise. Meanwhile, governments and central banks respond by printing more money. Gold cannot be produced. The limited supply makes the demand rise.
Supply and Demand – The Fundamentals:
Gold and Silver have commercial uses in various industries such as electronics, architecture, high-technology, medicine, and much more. There are a limited amount of gold and silver mines.
How Much Should I Invest?
Dependent on your situation and what you can invest will determine how much you should invest. Always speak with your financial advisor or SDIRA consultant before making any drastic investments. Diversifying is key!
However, most experts will advise that a 5% – 25% investment is not only “safe” but wise.
For instance, hedge fund manager Ray Dalio, follows economic seasons in his All Weather Portfolio. Rainy days. Stormy nights. Sunny weekends. Cool mornings. The same can be said of the economy and how it fluctuates with the stock market, political ambitions, and supply/demand. For starters, anyway.
I’m no hedge fund manager, let alone expert. But taking the time to understand the basics in diversifying, will help you in the long run. We quickly realize how fast life goes by. And we all understand we can’t take it with us in the end. But we can provide a nest egg for our legacy. Whether it be to ensure our children have less worries, or continuing a donation to feeding the homeless after our time has passed, or simply allocating to a trust fund for future investments in our name.
The All Weather Portfolio – Allocate Gold & Silver in an IRA
The All Weather Portfolio is a product of hedge fund manager Ray Dalio. He is the founder of Bridgewater Associates. Which, according to Forbes, is considered the “world’s biggest hedge fund firm”. Managing over $160 billion!
Dalio isn’t exactly a rags to riches story. However, he grew up in Middle-Class America and started his quest for the stock markets young. Caddying for golfers. Please note, I’m not pushing his methods on you. I am merely opening the doors to a method of investing in precious metals. At the very least, it’s worth exploring. Knowledge is power. Be powerful in your investments.
What is the All Weather Portfolio?
The asset allocation of the portfolio is broken up like this:
- 40% long-term bonds
- 30% stocks
- 15% intermediate-term bonds
- 7.5% GOLD
- 7.5% commodities – such as SILVER, cotton, oil, etc.
How does gold and silver fit in the Allocate-ion?
The reason he chose those assets goes into his theory on economic “seasons.” According to Dalio, there are four things that affect the value of assets:
- Inflation. The increase in prices for goods and services — and the drop in purchasing value of a currency.
- Deflation. The decrease in prices for goods and services.
- Rising economic growth. When the economy flourishes and grows.
- Declining economic growth. When the economy diminishes and shrinks.
Based on these elements, Dalio explains that we can then expect four different seasons that the economy can go through. They are:
- Higher than expected inflation (rising prices).
- Lower than expected inflation (or deflation).
- Higher than expected economic growth.
- Lower than expected economic growth.
The point of the seasons is to be able to go with the flow. Instead of fighting the current. Which in turn will allow one to be financially stable (and secure). Not only through the bull markets. But the bear markets, as well.
A market in which share prices are rising, encouraging buying. The bull market is the condition of a financial market in which prices are rising or are expected to rise. The term “bull market” is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, real estate, currencies and commodities. Because prices of securities rise and fall essentially continuously during trading, the term “bull market” is typically reserved for extended periods in which a large portion of security prices are rising. Bull markets tend to last for months or even years.
A time when stock prices are declining and market sentiment is pessimistic. Generally, a bear market occurs when a broad market index falls by 20% or more over at least a two-month period.
Now apply those two markets to the seasons Dalio outlined to explain the economy and essentially, what it means for each item in a diversified portfolio.
Remember, when stocks and the dollar are low, precious metals are high. Not all commodities trade in the same way or experience the same market. Understanding the differences is fundamental to growing any portfolio.
The All Weather Portfolio – Review
- Relatively Low Amount of Stocks: Due to the high volatility of stocks. Note: if you’re trying to make a portfolio that is as risk-free as possible – Minimize the stocks.
- Bond Majority: According to Dalio in MONEY, “this counters the volatility of the stocks”. Thus, making it key to building a portfolio that prioritizes minimal risk over making as much money as possible.
- 15% Commodity Allocation. With the high volatility of those assets, historically they do well in environments where there is inflation. Splitting the commodities with half gold and half other will ensure a balance through inflation and deflation.
Combined this makes a well-balanced portfolio that can weather any season. Past. Present. Future. Stormy. Rainy. Sunny. Bright.
Comparisons to Other Portfolios?
Experts have compared this model with other proven models. Showing that back testing, even during the Great Depression, this model would have outperformed even the 60/40. With minimal loss. Learning from the past, makes our future possible. But don’t take my word for it. Do the research. Look into it for yourself. Speak with your financial advisor. Make a portfolio that suits your needs and expectations.
Allocate your Gold & Silver in a Precious Metal IRA
Expectations. Diversification. Balance.
“The best laid schemes of mice and men often go awry.” – Meaning, the best laid plans can be overturned in the blink of an eye. Nothing in life is guaranteed but eventual death. That isn’t meant to be pessimistic at all. It just means that one day, you can be preparing yourself for law school with expectations of joining the Navy and JAG. The next, your direction is being rerouted because you chose to rescue dogs. Now you’re in the Gold & Silver industry with 6 pups! Story of this girls life!
Being prepared for unplanned events is what diversification and owning your own personal precious metals commodities is what this post has been about. Providing you with a proven method in doing that. Not every portfolio will do the same. Not every method will work for every single person. But understanding your financial needs and how to properly diversify your portfolio will be the greatest asset you have. There’s no bullion around with that!
Vermillion Enterprises is here to help!
Properly allocate your IRA with Gold & Silver TODAY!
Vermillion Enterprises is here to help you with all your precious metal purchases AND sales. Whether you buy or sell your IRA eligible gold and silver OR it’s for your own personal stash. We are here to help. No collection is too small or too large. Which means. We buy and sell anything – from 1 oz. to 100,000 oz. Vermillion Enterprises is your Gold & Silver Source. “May the source be with you!”