Senior Life Settlements, Physical Silver, The Gold Standard and Diamonds

Listeners’ Questions, Peter’s Answers- June 9, 2011

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Rob from Pasadena, CA
How do you feel about investing in Senior Life Settlements (SLS)? The traditional argument for them is that for relatively conservative and secure mid to long-term investments they return pretty high yields 9-15%. Are they less attractive to you because they violate your investment principles of staying as liquid as possible over the next decade? Is there an inherent flaw to these investments due to the fact they are often liquidated through depreciating flat currencies like the dollar?

David from Clemson, SC
I want to add more physical silver. Do you consider now a good to fair time to buy? Do you have a preference for building silver holding with bars, eagles, or junk?

Tom from Allenhurst, NJ
I’ve been listening to your reports about going back to the gold standard as the dollar collapses, and being the area to convert dollars into BUT — why do you not mention converting anything to diamonds, which is what the wealthy have done in the past when other countries economic structure failed? Diamonds are the only commodity that is portable and exchangeable in every country and is easily hidden when/if transporting large amounts of assets — unlike gold & silver.

Lisa from Florence, SC
I’ve heard Howard Ruff say that at some point all liquid assets will need to be converted to physical precious metal because of illiquidity of the markets in a major crisis. What say you? If you agree, will there be enough warning to cash out and convert?