218 THE BiG DROP
these metals rose, making them great instruments to diversify
your investment portfolio. As 2015 unfolds, investors search-
ing for hedges against both deflation and inflation will find
their way to precious metals.
You don’t need to worry about management fees, since the
PMC Ounce is not a fund. There is a modest premium over the
spot price, as with any bullion purchase. You can find the real-
time PMC Ounce spot price easily through the PMC Index on
Neptune Global’s site.
You can also own the PMC ounce within or outside your IRA.
For more information, visit http://www.neptuneglobal.com/
pmc-ounce/, or call Neptune Global at (302) 256-5080. Be sure
to mention that you’re a Jim Rickards’ Strategic Intelligence reader.
What I like best about this is that the index actually out-
performs three of the four index components with less volatil-
ity. That means a much higher Sharpe ratio — a measure of
risk-adjusted performance — than either gold or silver.
The reason is that when gold is getting smashed, silver is
not, and vice versa. The blended product dodges these bullets
and reduces volatility, for a higher total return.
Of course, this product has been beaten down lately, like
the precious metals themselves, but that actually makes this
an attractive entry point.■ Gold Coins
I recommend you have a 10% allocation to physical gold if
you don’t already. Here I recommend American Gold Eagle or
American Buffalo gold coins from the U.S. Mint.
The American Eagle is 22-karat gold, and the American
Buffalo is 24-carat gold. The Eagle is more durable than the
Buffalo because it has some alloy, but both have 1 ounce of gold.
You should not buy so-called “collectible” gold coins or
older coins, because dealers charge a premium that is not