Perceptions on gold and silver have changed dramatically over the last decade and as Wall Street has pushed the commodities sales pitch on Main Street we’ve seen a distinct change in the way commodities are perceived by investors. As I’ve previously discussed, I am not comfortable with the idea of most commodities as an “investment” (I prefer to invest in the companies that somehow benefit from the human ingenuity involved in extracting or utilizing these commodities), however, gold and silver can serve as a useful hedge in a portfolio (for a small to moderate portion of a portfolio) as they tend to be perceived differently from most other commodities.
In the following video Morningstar’s Abraham Bailin and State Street’s Anthony Rochte discuss the growing change in the perception on gold and silver and how small investors can use these assets to hedge a portfolio.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.