Since the dawn of time, precious metals such as Silver, Gold and Platinum have been recognized as valuable assets. And today, precious metals have their place in every good investment portfolio; precious metals have high economic potential for asset appreciation, in addition to providing a hedge against inflation and stock market correction.
As for FOINS, we focus solely on precious metals, specifically Gold (XAU) in this asset class. Precious metals have stayed rather quiet since 2012-13, coinciding with the S&P 500 bull market run. Gold as an investment class, is a good insulation and insurance against inflation and stock market depreciation.
While precious metals are sexy by nature, investing in precious metals is probably not a “sexy” move under current investment environment; they may not produce very high returns in the short term. But if one would agree with the investment philosophy of “Don’t place all your eggs in one basket”, then precious metals should become one of the key components of every investment portfolio. The recent stock market corrections which started in February 2018 should serve as a good reminder/motivator for one to start developing certain defensive investment strategies and measures toward asset-class diversification.