Euro Pacific Asset Management

The Case Against Financial Illusions Macroeconomic shifts require a cold, hard look at where we place our capital. For years, speculative bubbles inflated on a sea of cheap debt. That era is ending. As the air escapes the system, the assets that surged on pure hype will likely suffer the steepest falls. Investors must look toward tangible value to weather the coming storm. Rethinking Asset Allocation Peter Schiff, chief economist of Euro Pacific Asset Management, advocates a hard pivot away from domestic markets. He manages five mutual funds designed to capture growth outside the United States. His prescription for the average investor is precise: own physical precious metals, acquire mining stocks, and diversify into foreign equities. Schiff practices what he preaches. His own portfolio holds a massive concentration of gold and silver mining shares alongside international energy and emerging market stocks. The Anatomy of a Wealth Protection Portfolio * **Physical Gold:** A recommended 5% to 10% minimum holding for baseline insurance. * **Mining Stocks:** An additional 10% to 25% allocation to capture operational leverage on rising metal prices. * **Global Diversification:** The remaining balance positioned in dividend-paying foreign equities, emerging markets, and short-duration foreign bonds. Why Bitcoin Fails the Resilience Test Proponents of Bitcoin often cite "Pascal's Wager," suggesting that keeping a small percentage in crypto acts as cheap insurance. Schiff rejects this logic. The asymmetric upside of the early days has vanished now that the asset has entered mainstream political and corporate circles. With a pro-crypto administration and saturated public awareness, the potential for exponential gains is gone. Dollar-cost averaging into a stagnant or declining asset generates heavy opportunity costs. Capital wasted on crypto could instead yield substantial gains in rising commodities. Building for Sustainable Growth True wealth management requires discipline, not speculation. Chasing volatile digital trends often results in permanently impaired capital. By centering a portfolio on physical assets, mining operations, and non-U.S. dividend-paying companies, investors position themselves to thrive during systemic inflation and global de-dollarization.