Here's why Indian dads will agree with investment ideas of Jim Rogers
"Everybody must own some gold and silver as insurance if nothing else," said Jim Rogers told Money9
Father’s Day is almost upon us. A good way to celebrate this day would be to use the financial wisdom imparted by your father to make the right choices and navigate through these difficult times.
Well, this advice from a legendary investor will see Indian dads nod in agreement.
“Everybody must own some gold and silver as insurance if nothing else,” said Jim Rogers told Money9.
While there is no such thing as safe in the world of investments according to the commodities guru, Rogers believes as a protection, the yellow metal should be a part of an individual’s investment portfolio.
Indian families have depended on gold for generations. This versatile investment comes in many forms. While some prefer to invest in gold bars or coins, many choose to buy gold jewellery. With time, many families are also opting for evolved forms of gold investments like Exchange Traded Funds (ETFs) or digital gold.
How much should you invest in gold and silver?
While financial planners have been advising investors to have 10-15% of their portfolios invested in gold and silver, Jim Rogers believes it must all depend on an individuals research and study.
“Hot tips will ruin you. If you know about precious metals, invest accordingly. If you don’t understand, you must learn,” he said.
He said that one must not make a investment decision based on someone else’s advice or popular tips. Each investor’s journey is different so they should find their own path.
“There is nothing such as how much should you invest, it all depends on how much you know. If you know a lot about Silver, you could also put all your money. If you know little, it could be a small portion, so it all depends on what you know. I’m waiting to buy more commodities in the way of indexes as I believe it is the easiest way for me. Many studies show that if you own the index, you’ll outperform most investors”, he added.
Inflation impact
He, however, pointed out at the importance of owning real assets. He said that time is ripe to invest more in silver and commodities as inflation is rising.
“The cheapest asset class is commodities, silver is down 50% from record levels, sugar is down 70%, oil is down 50% and this is not a bubble. One always needs to be protected from inflation by owning real assets.”