Investment Pyramid
Updated October 28, 2011
Keep at least 60% of your savings in physical Gold and/or silver. Sell all Bonds, Money market instruments and Common funds. Don't keep cash or near cash (bank deposits, saving accounts) . Holding any material portion of your Wealth in Dollars, Euro's, Pound Sterling is suicidal, particularly if held in insolvent BANKS in the USA, Europe or the UK. (This implies you have to request physical delivery and paper Gold/silver is not a valid option!) An important part of the strategy is to (from a certain time on) move out of Gold/Silver into other instruments...
Recipe for a cake which is extremely benign for the financial health of your savings:"Mix physical Gold and Silver with Gold and Silver majors, add enough Juniors and Oil Stocks (fully integrated, service and drillers) and mix it with Uranium. Take each opportunity to add some flavor by buying abnormal cheap investment instruments (like US real estate at half its production cost). Do not stir (day trade) and cook until ready (may take several years). Avoid salt (us dollars) and pepper Euro's and keep cash in Swiss franc, Australian and Canadian Dollars" Communicating Financial Vessels: |
||
Bullish |
Neutral/Reversal |
Bearish |
Fiat paper Currencies are ALL Bearish expressed in Real Money (Gold). |
||
Aussie, Swiss Franc, Candollar, Japanse Yen |
US Dollar, South Africa Rand, British pound, Euro |
|
|
||
Bonds: Corporate & Government, Cash, Savings accounts, life Insurance, Pension funds |
||
All Bonds and Money market instruments, Cash and Saving accounts, ETFs, Derivatives |
||
Physical Gold & Silver : 60 % of your savings! |
||
Gold, Silver |
||
World Stock markets are Bearish expressed in Real Money but better than Bonds and cash! |
||
Dow Jones, SP500, British Footsie |
Australian ordinary |
|
Safer than Bonds, some Utilities, shares of certain LOCG |
Chinese Shanghai (SSEC), Japanese Nikkei |
|
German DAX ? , Swiss SMI ? |
Dutch AEX, French CAC, Belgian BEDOW, Italian Mibtel, Portugese Dow, ATX (Austria),Spanish IBEX |
|
|
||
Market sectors (see portfolio and shopping baskets for individual shares) |
||
Gold & Silver shares -, Junior |
|
|
Oil service & Exploration** |
Telecommunication |
|
Integrated oil co's |
Fertilizers |
Department stores & Retail |
Alternate energy |
Farming equipment |
Steel, Retailers, |
Uranium miners |
Transportation, Automobiles. |
|
Commodities (all commodities of Low Order Consumer Goods order |
||
Platinum |
||
Crude Oil |
Coal, Natural Gas |
|
Copper, Uranium |
||
Real Estate : Private & Commercial - Avoid and expect bottom in 2033! |
||
American Real Estate: USA |
UK, South Africa |
|
Spain, Portugal, Italy |
||
Art and Collectibles, Diamonds |
||
Art and Collectibles |
||
Investment instruments to AVOID ! |
||
Structured financial products; money market funds (based on bonds); most common investment funds; ETF's etc...ANY uncontrolled and unregulated investment instrument! |
||
NEVER invest in an instrument you don't fully understand! Don't invest in an instrument which has a PENALTY when you want to get out |
||
To do : invest in REAL ASSETS. Even when their price goes down, you're not going to loose them. Today it is important to |
||
"Models and technical analysis cannot always spot each change in market conditions. Independent thinking, emotional stability, a keen understanding of both human and institutional behavior is vital for long term investment success."