An in-depth guide to making gold a serious part of your portfolio
Gold, the long forgotten store of value that was once the center of the global financial system, suddenly matters a great deal again. It has become a leading asset by virtue of its strong performance, and its booming demand has made it the only financial asset that remains in an uninterrupted bull market. And yet gold remains one of the least-owned financial assets in investment portfolios today.
Hard Money helps investors move beyond the simple, yet widely accepted notion that gold makes sense in today's financial environment, and explores ways to magnify potential investment returns driven by precious metals. This reliable resource examines the investment vehicles (bullion, stocks, derivatives, and even rare coins) and strategies (aggressive, conservative, passive, and variations) aimed at beating the price of gold as it rises, and ways to protect a portfolio should the metal decline.
Identifies five key drivers that should continue to push gold higher in the years ahead Explores the ins and outs of investing in gold and making this precious metal a part of your portfolio Examines the pros and cons of multiple ways to buy gold via coins, ETFs, mining and royalty stocks, and other investment vehicles Author Shayne McGuire is a highly-regarded expert on gold
Written in a straightforward and accessible style, Hard Money offers key strategies to enhancing returns with new methods for investing in gold.
4.5 Stars. A Great Read
Shayne McGuire has authored an excellent book well worth the time to read it. Mr. McGuire lends his experience managing institutional funds to a book that is ready to be applied in a practical setting today for all investors, this is Not expansive theory from academia, this is expertise from somebody applying it every day.
Hard Money flows very well and is extremely well sourced both by the author's experience and numerous other sources, something that tends to be lacking in many contemporary investment books regardless of whether they deal with hard assets, equities, debt, etc. Hard Money backs up the proposals therein with numerous Bloomberg sourced graphs and reference to coin and other hard asset dealers.
There are outstanding examples of how to incorporate not only Gold, but Silver, Platinum, and even Palladium in a portfolio and the examples are as applicable to individuals as institutions. Additionally, Hard Money goes into coin and physical Gold from an investor's perspective without droning on endless about coin grading and collecting, but that is included, just not to the nth detail and degree.
So why did I elect to subtract a half star? One of the early premises in the book about why to include Gold in an investment portfolio is scarcity and how in general Gold is not a part or only a very small part, less than 5%, of most institutional portfolios. Institutions are the 'elephants' that make the charts and Hard Money proposes that if they increase their holdings of gold by even a point or two Gold could skyrocket. I agree with this premise, but would say that is precisely a reason why it is unlikely to happen. Additionally, I think the author should do more justice to discuss the fact that Precious Metal futures and ETF's are denominated in Dollars. It is hard to imagine a scenario where Gold goes parabolic and valued in tens of thousands per ounce without an inverse crash in the Dollar. For cases like that physical gold is required to capture the return and that is rarely practical for an institution in size that matters.
Gold and other precious metals should be integrated into every investor's portfolio. Hard Money is a contemporary investment book that is a must read to understand how best to to do so whether you are managing thousands, millions, or even tens or hundreds of millions.