I should trust the same analysts and consultants that cost me 40% of my retirement? When I asked them about investing in precious metals, they laughed. So I did my own research and made my own purchases, and I've done ok.
On the other hand, I agree that putting all of your eggs in one basket means that you are protected from one scenario only. If you own nothing but precious metals, you are exposed to the downside of a major deflation. If you own nothing but cash, you are exposed to loss through inflation. If you own stocks or mutual funds, you are subject to irrational market movements and economic shocks that can cause stocks to crash. If you own bonds, you can be wiped out by a rise in interest rates.
Diversifying, to me, means having some eggs in many different pots, knowing that some of them are contradictory, because the world is an unpredictable place.
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