Take a look at this comparison chart and see the ROI for these few important Metals performance.
The best is COPPER and the worst is Platinum since the March Low.
I am investing for the long term and will wait for healthy correction to add more long positions. And I have reiterated the volatility of this PM and personally, I do not take a large positions in each of these PMs.
I am often asked how to diversify your portfolio ? The answer is pretty straight forward. It depends on the size of your capital. If you are starting out with a small capital of say 5 to 10,000, then I would say 50% in SPX500 and the rest in growth stocks.
If you have 100,000 to 500,000 then it becomes easier to allocate a certain % of your capital to other assets class like PMs. And even then, start with 1 or 2 before adding as this over-concentration can cause some traders/investors sleepless nights like the recent March crash. Imagine you have all 5 of these PMs, a 10% fall in 1 metal is amplified by 5 times if you purchased all though the reverse is true as well.
So, how much risks you can stomach has also to do with your capital base and your personality, imo.
Also, there are many complicated instruments out there being promoted by various brokers like DLCs, leveraged ETFs, options, etc. Personally, I do not have expertise in these instruments and would not comment if it is worthwhile.
Just managing my own portfolio across commodities, stocks, futures, ETFs, currencies IS MORE THAN ENOUGH for me to handle. Then again, to each his own. If you have the bandwidth and knowledge , it is OK to expand your investment reach into these new products. But always start small and gradually inch in as you gain more confidence.
The best is COPPER and the worst is Platinum since the March Low.
I am investing for the long term and will wait for healthy correction to add more long positions. And I have reiterated the volatility of this PM and personally, I do not take a large positions in each of these PMs.
I am often asked how to diversify your portfolio ? The answer is pretty straight forward. It depends on the size of your capital. If you are starting out with a small capital of say 5 to 10,000, then I would say 50% in SPX500 and the rest in growth stocks.
If you have 100,000 to 500,000 then it becomes easier to allocate a certain % of your capital to other assets class like PMs. And even then, start with 1 or 2 before adding as this over-concentration can cause some traders/investors sleepless nights like the recent March crash. Imagine you have all 5 of these PMs, a 10% fall in 1 metal is amplified by 5 times if you purchased all though the reverse is true as well.
So, how much risks you can stomach has also to do with your capital base and your personality, imo.
Also, there are many complicated instruments out there being promoted by various brokers like DLCs, leveraged ETFs, options, etc. Personally, I do not have expertise in these instruments and would not comment if it is worthwhile.
Just managing my own portfolio across commodities, stocks, futures, ETFs, currencies IS MORE THAN ENOUGH for me to handle. Then again, to each his own. If you have the bandwidth and knowledge , it is OK to expand your investment reach into these new products. But always start small and gradually inch in as you gain more confidence.
Comment:
all metals are displaying a downward spike currently.
