International Finance

From an investment perspective allow me to go back to something I said earlier, “Some decent percent of folks’ reserves should be in precious metals.” That percentage is really up to you but given the current state of global finance, I would suggest not less than 15%.

Precious Metals

If the dollar completely goes to hell, which is not out of the realm of possibility in the not-too-distant future, precious metals are a form of exchange which could – likely would – be used. At the very least, from a long-term, strategic perspective, precious metals have been on a long-term uptrend.

Look back and you will see that gold has gone from $253/ounce to its current $1,750/ounce.

Silver is similar, as I’ve said earlier. Silver has gone from roughly $5 an ounce to more than $21 per ounce today.

When you have the kind of fiscal irresponsibility that gushes out of Congress and the Fed today, it becomes all too obvious that some of your reserves should be in precious metals.

Foreign Currencies

In addition, I recommend people diversify out of US dollars to some small degree into some other foreign currencies. Personally, I’m a fan of the Norwegian Kron because of the oil revenue that flows into that from the North Sea, and lately, elsewhere.

“In spite of the climate crisis, Norway’s love affair with petroleum seems to be continuing. Never before has the country enjoyed such high revenue from its oil and gas industry.”

Norway Announces Record Oil & Gas Revenues in 2021

Norwegian Krone has oil behind it and has been up-trending lately.

Diversify Your Reserves

Perhaps some precious metals, or selected foreign currencies. I’m not saying everything. I’m just saying take a little bit of the reserves as it helps diversify your bets.

Precious metals, foreign currencies, and cash – that’s how you stay out of debt. Occasionally people ask about real estate. Right now, as a general statement, the real estate market is declining sharply but there are always exceptions. With a smart broker, you can find “off-market gems.” Work with a pro that knows this world.

A friend, who is also a client of mine, came to me some time ago and told me what he thought to be an excellent real estate deal. It was a four-bedroom, two-bath home available for $38,000, as it was in foreclosure. My response was, “Check it out. Make sure it’s legit and not subject to major repairs. If it passes your due diligence or that of your broker, that’s a killer deal.”

So, yes, there are exceptions to pretty much everything, and it is possible to find some amazing real estate investment opportunities.

In economic times like these, CASH is King, and so are precious metals.

Stay liquid.

John Truman Wolfe