How much gold and silver should you own?

Sean Brazney: Hello! My name is Sean Brazney, Sales Director for Monex Deposit Company. I’m here with Jeffrey Christian, Managing Partner and one of the Founders of CPM Group, the Founder of CPM Group, one of the many analysts over there. Thank you for being with us today, Jeffrey.

Jeffrey Christian: It’s always a pleasure to be with Monex and to be with you personally Sean.

Sean Brazney: You know our theme this year and the reason why we get together every month is 2024 Precious Metals in a Rising Storm. We have this resource available for our listeners and our viewers every month to call in and get this report, but I teased a little bit last time we got together, there’s another report, you do an annual report for us every year, a little bit more comprehensive report, and this is probably going to be available by the time people are viewing this video. So, I kind of want to make mention of it. It is Global Uncertainties and Their Effects on Gold and Silver. There’s part of this report that I want to bring up. It’s a common question that comes up that we deal with all the time, but I’m really eager to hear your take on it, and we have investors that ask us, “How much gold and silver should I own? How much should I buy?” and I really love your take on it from your perspective.

Jeffrey Christian: Yeah, and our answer is we can set up parameters, and I’ll talk about that in a second, but it really depends on who you are, how much wealth you have, how much portfolio you have, where you are in life, what’s your age, what’s your income, you know, all of those factors come into play. Our view is that everybody should own some precious metals, some gold and some silver, physical metal as insurance, and how much you have and what percentage of your wealth or your portfolio is in that, really depends on who you are. Historically, in terms of the parameters, you know the rubric has always been 5% to 10% of your portfolio or your wealth should be in gold and silver, and when things are really going well economically and politically in the world maybe it’s 5%, and when things are scary it’s 10%, but that data was really based on research done in the early 1980s using data from 1968 when the gold price was freed to 1980. We redid that data and that methodology, that was done by Ibbotson Associates in Chicago, Ibbotson was a professor at the University of Chicago. We redid that using his methodology in 2016 and we continually update it now, and what we found was that if you look at it over the longer term, you know, the optimal amount of your wealth, your portfolio that you should have had in gold or silver, 25% or 30% in the period 1968 to the present. Yeah, that’s a lot there. So, it’s somewhere between 5% and 10% and 25% and 30%, and part of that depends on who you are, and part of it depends on where we are in the economic and political cycle. We’re in a very scary place politically and less scary, but still scary economically. There are a lot of storms that have been brewing for years and decades that are right on top of us right now. Those of your viewers who have been listening to us know we’ve been saying that we thought 2024, 2025 was going to see sharp increases in gold and silver prices, because of these economic and political factors, and we’re seeing that in the first half of this year already in gold and in silver. One of the discussions the analysts at CPM group were having among ourselves is, okay we could see that and we could see the economic problems, but do we really think things will get better in terms of economics and politics in 2026, 2027. We have watched for 25 years now, since 2000, a deterioration of economic and political conditions, and we’ve watched gold go from $270 to $2,300, $40 today silver going from $3.50 to $50 and about $33, $32, right now. The question is… Do we really think that economic and political conditions are going to get better after 2025, 2026? We’re not convinced that they will, but we are convinced and we have very high confidence that what we been expecting for 2024, 2025 is unfolding, and we will see even higher prices for gold and silver over the next 18 months, 24 months. We’re at that… we’re at the high end of that range, where you say it’s not 5% 10% or it’s not 25% it’s 30%, it’s definitely there.

Sean Brazney: Yeah, I like to look at that, you know, 5%, 10% is maybe a core position in the metal, and then when you see spikes to the downside, you can expand that position a little bit, and then when we see runs on the upside or a trend that plays out on the upside you can kind of par some of that off and bring your core position down a little bit. You mentioned another thing that’s actually in that report, as well as, some of the geopolitical things that shifted kind of coming into 2000, 2001 timeframe, you know on a government level, you know global level that’s in this report, as well, but one of my favorite parts of the report that you did here Jeffrey is what I think is a real personable kind of approach to what’s best for you and that really is something that you, as the investor, needs to decide. What a better way to do that than call Monex, you can talk to an account representative, and share some of your why, your wishes, wants, and desires for why you’re buying the metal, and you can get your free report from Monex today.