Whether you’re a sophisticated portfolio manager, or an individual
investor seeking to optimize your holdings, times of financial crisis
typically yield the best opportunities to “rebalance” your assets.
This, for several reasons. First, severe market movements cause you
to reconsider your investment theses. Second, they can provide
opportunities to purchase favored assets cheaply – both on an absolute basis,
and relative to others. And finally, they afford the opportunity to
engage in tax-favored transactions, such as taking losses to offset gains in
other assets.
I have personally undertaken this process countless times – including this
year, when I took advantage of what I perceived to be an “overvalued”
gold/silver ratio – to take losses in some of my past gold purchases, and
re-allocate the proceeds to silver. Moreover, given the weak demand
environment in U.S.-based Precious Metals demand – ironically, as the U.S.
Mint reports all-time high silver Eagle sales, just five months after a severe
metal shortage – I have taken advantage of sagging premiums on limited
edition coins, like the Royal Canadian Mint Wildlife and Birds of Prey
series; and Perth Mint Funnel Web Spiders; to purchase “numismatics” at
nearly the same price as generics.
To that end, just yesterday, I purchased 2015 limited edition, .99999
fine, Royal Canadian Mint “Growling Cougar” gold coins, at prices barely
above 2016 generic gold Maples. The Growling Cougar is the second of
the three “Call of the Wild” limited edition coins (the third will be
released next year); and given the success of the first – the “Howling Wolf,”
which trades at a $100/oz premium to generic gold Maples – we have been very
high on the Growling Cougar since its February
2015 release.
As we are just a week from year’s end, it couldn’t be a better time to
consider “optimizing” your Precious Metals portfolio, to take advantage of
unique commodity “wash sale” tax loss exemptions; your personal view of the
gold/silver ratio; and opportunities to purchase limited edition coins with
essentially no numismatic premium.
To that end, Miles Franklin has been arranging such swaps for two decades
– as discussed in thispodcast
I taped with Miles Franklin’s President and Co-Founder, Andy Schectman,
earlier this year. If you have any questions, please call us at
800-822-8080, or email me at ahoffman@milesfranklin.com.
