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Diversifying Your Canadian Investment Portfolio with Precious Metals


Any serious investment strategy includes the word “diversification”, yet many financial advisors will not immediately provide valuable insights into precious metal investments. 

Perhaps financial advisors do not get kickbacks from precious metal sales, or perhaps it’s too much of a bother for them. Still, by not having gold, silver and platinum in your investment strategy, you are missing out on an opportunity that has been proven to profit investors. 

It’s Time to Set the Record Straight on Precious Metal Diversification

Diversifying your Canadian investment portfolio will help ensure you continue to profit even when another aspect of your portfolio fails. 

It will happen. So be ready for it to ensure that you are not caught. Sometimes it will start with a collapse of the housing market. Another time it will be the automotive sector or the travel industry. It’s time to diversity with gold, silver, palladium and platinum. 

This diversification strategy, your financial goals, and risk tolerance will help create the portfolio best for you.

What Should Canadians Have in Their Diversified Portfolios?

Investment portfolios should include many assets, such as equities, property, cash, precious metals, etc. Diversification should not mean only a wide range of assets like tech stocks, commercial real estate or even precious metals. There should be a balanced portfolio with various categories.

Why Should Canadians Hedge Their Investments

Most importantly, what is hedging? Hedging ensures that your investments are set up so that if one part of your portfolio is negatively affected, another part will offset the losses. You should hedge against upcoming negativity like inflation, negative economic growth and Elon Musk’s tweets.

Which Precious Metals Should I Invest In for Optimal Diversification?

Buying a healthy mix of precious metals types, sizes (1 oz, 2 oz etc.) and formats (coins, bars etc.) will spread your investment evenly. Gold is often used for jewellery and investment reasons, while silver plays a huge role in manufacturing. Platinum and palladium are critical for automobile emission reduction. With so many purposes, there is always one that outperforms the others. 

Although you are in this to make money and will likely invest in bullion more than other types which lean toward numismatic purposes, there is much to be said for investing in collector products. Coins, bars and rounds are often produced in short supply and can be highly valued on the open market today and for years from now. Stocking up on numismatic products could be another wise diversification strategy within the precious metals subset.

Is Your Investment Portfolio Diversification Strategy Worth Its Weight in Gold?

Well, it certainly should be. Increasing your proportion of precious metal assets before a market turmoil has historically benefited those who see the crash coming. And understanding all of your investment options is crucial to your plan’s success. 

Remember that every investment carries risk, but it’s up to you to ensure that your hard-earned money today continues to make money for you in the future. Review your precious metal diversification options now available in Royal Bull’s online shop