You have X,000 $ - how to diversify your portfolio?

Discussion in 'General Precious Metals Discussion' started by TreasureHunter, Jun 11, 2017.

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  1. southerncross

    southerncross Well-Known Member Silver Stacker

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    LOL your 10% in BTC and ETH alone over the last twelve months would probably surpass any gains made in any other asset class in that time period.

    Just 5 K AU in each twelve months ago alone would see BTC return about $31500 AU today and ETH would gain you about $162,977 in today's right now value AU for the other $5000.

    And this value will only grow in time as well. Shares are an old school class of assets and probably quite reliable over the long term, but just as nobody had a mobile phone or a solar panel ten years ago , nobody owns Crypto's at the moment either.

    No Doubt there will be the argument presented that Crypto's can drop just as fast as well, but ....yeah but so can shares.... :)
     
    southerncross, Jun 19, 2017
    #21
  2. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    When assessing an asset class's capacity to preserve value, as was the OP of this thread, personally I would rate cryptos as a speculative play on capital gain as they don't return an income. For that reason, I would not include them in the OP's portfolio, as I don't include silver for exactly the same reason as history has shown and why I would suggest limiting exposure to gold. IMO the main goal of any investor seeking to preserve their wealth would be to look for asset classes that return a regular income stream firstly, any capital gain over time is a bonus.

    Contrary to your opinion about shares being an old school asset class - companies will always be looking for capital investment in order to bring new products to market or improve productivity, therefore, there will always be a solid place for share ownership in any portfolio and like property, they pay a rent.

    Another thing to consider is that shares, cash and property are the 3 most recognised asset classes - which is essential when applying for loans, and applying for loans is about the only way most of us can build wealth, short of winning lotto or inheriting the family empire.
     
    mmm....shiney!, Jun 19, 2017
    #22
  3. GoldenEye

    GoldenEye Well-Known Member Silver Stacker

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    Also, the loan should be used to gain returns greater than the cost of that loan. So you're using borrowed money to make more money, or to save on essential expenses such as house rent.
     
    GoldenEye, Jun 20, 2017
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  4. TreasureHunter

    TreasureHunter Well-Known Member

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    I see PM's have become less popular on this forum following the 2013 gold crash :)

    It is amazing how many are suggesting shares...

    So: the severe correction of PM's have lead to so much loss of confidence. If I would have asked this question in 2012, then 90 % of you would have emphasized on silver and gold! :) LOL
     
    TreasureHunter, Jul 2, 2017
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