Cautions In Commodity Investment

I always try to err on the side of caution. Where investment is concerned I tend to do my homework and often find myself swimming outside the whirl pools that are a consequence of trends.

That is why the Walewski and Bendahan article on CityWire caught my eye, ear and interest this morning. Here are two very prominent fund managers limiting their exposure to precious metals. Going against the trend in a still rising market! Always a good warning sign for us little folks.

Where gold, silver, platinum and palladium are concerned, your holdings will always have value. Just don't get the idea that their value will always go up. As with any investment it is never wise to hold on too long trying to hit the peak. If you find yourself at the top of a market with large holdings, it's not so easy to jump off before the downhill slide. Selling in a declining market can be difficult and holding on, waiting for a return of the bull market can sometimes take years. Ask anyone who had a stake in gold or silver in 1979 and still had it in 1980.