Asset Allocation and Precious Metals Are you an investor looking for a new way to profit from the stock market? If you are not familiar with the investing world, you may not realize that precious metals and traditional stock investments are different. While traditional stocks are usually classified as equities, precious metals are classified as commodities. If stockholders can profit only after the company stock they own are in good business standing, one might find that also investing in the precious metals market can help diversify their investment portfolio. After all, precious metal investors profit when the demand for that precious metal increases. Why put all your money in one place when you can spread out your investments to lower your risk? Developing a sound asset allocation strategy takes time and effort. No one can figure it out overnight. With so many different asset classes, it can be difficult to find a starting point. Not all assets, of course, are included in an asset allocation strategy. One might find that bonds or real estate may not be applicable to oneâ€™s investment goals or risk tolerance. Thus, bonds or real estate may not be part of that individualâ€™s investment portfolio. You may also find that without having much experience in the market, it can be difficult to gauge your risk tolerance. Therefore, proper balance is key to a winning investment portfolio.
Various assets perform differently in different economic conditions. Since precious metals are of high economic value, it is often regarded as a symbol of wealth. Gold, silver, titanium and the likes are deemed precious metals and provide many uses including jewelry and used as a form of currency. With increased market volatility, many investors seek out commodities (e.g. gold, silver, etc) to reduce their risk and increase their returns. The goal of your investment portfolio is to build one that matches your ability to accept risk while meeting your need for expected returns. To become a topnotch investor you should develop an asset allocation strategy unique to you. Meaning, you should invest your portfolio in different parts of the market (e.g. stocks, commodities, bonds, real estate, etc) to spread out and balance your risks. Develop an asset allocation strategy that fits your risk tolerance and investment goals. Investing in gold or other precious metals can serve as a hedge for investors against future economic currency crises like inflation or war. As the month of November draws to a close, a monster gold penny stock worth mentioning would have to be Astur Gold Corporation (TSXV: AST, OTC: ATRGF). If
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Are you an investor looking for a new way to profit from the stock market? If you are not familiar with the investing world, you may not rea...