Why a single-metal allocation leaves return on the table - and why a balanced, actively-managed five-metal portfolio captures more upside while spreading downside risk.
Auctus Metal Portfolios' team strongly advocates a balanced approach to investing in precious metals. Typically a precious metals investor will only invest in one individual precious metal - i.e. Gold or perhaps Silver - and then leave it in a vault to collect dust and hopefully appreciate in value over time. This approach will likely only yield the investor moderate returns over time, although it does indeed provide an "insurance policy" in terms of offering a hedge against unforeseen and negative macroeconomic events.
This is not, however, the approach an investor would normally take when investing across mainstream assets. Investors would prudently spread risk among a basket of shares for example, or other such investment alternatives, and would then re-weight their holdings periodically according to their individual market performance - taking advantage of price swings. Unsurprisingly, this tried and tested methodology for investing using diversification and an active management approach should therefore apply when investing in precious metals.
Auctus realized that investors' returns are consistently and substantially enhanced when a portfolio is optimally diversified across a basket of precious metals. The key to the selection of these metals is twofold:
Auctus has applied extensive research to the five precious metals that fit this criteria while continuing to ensure ownership of uncorrelated assets. These metals, in order of liquidity, are Gold, Silver, Platinum, Palladium and Rhodium.
Whilst these metals all function in different ways and their prices are driven by differing fundamentals, Auctus understood that a diversified investment portfolio could be built, carefully balanced across them, to both protect Auctus clients from downside risk and take advantage of market opportunities signalled by Auctus' proprietary algorithms. Auctus developed highly complex algorithms that process in excess of 55 variables - analysing precisely what drives each of the individual spot prices, which enables Auctus to actively manage the basket for its clients.
By using over 50 years worth of precious metals pricing data, we have shown that with a carefully weighted basket of metals, investors can generate substantial compound growth from their physical precious metals investments - with no paper trading, no collateralization and no leverage whatsoever - in both bull markets and bear markets. This balanced approach also protects clients from violent price movements in any single metal by spreading risk across the diversified portfolio.
By correctly diversifying and occasionally re-weighting our clients' metal holdings, we are achieving exceptional returns whilst concurrently serving as an essential hedge against negative global macroeconomic and systemic risks.
Find out how you can grow your wealth through the Auctus managed portfolio of precious metals.
