A Bloomberg-Los Angeles Times poll released last week discovered that:

Sixty percent of affluent investors expect returns of 10 percent or more in 2006. Asked where they would put $1 million today, almost three in 10 say real estate, 22 percent say stocks, 14 percent say mutual funds, and just 8 percent say bonds.

What's wrong with this picture?

First, the expectation of double-digit returns by American investors who rely on stock and mutual fund performance is 20 percent below stupid, given the track record of equities over the last five years. USA Today reported in January:

2005 was a washout for stock investors. The major three U.S. indexes ended mixed, with the Dow at a 0.6 percent loss. The Nasdaq eked out a 1.4 percent gain for the year. And the Standard & Poor's 500 posted the best performance with its paltry 3 percent gain. U.S. indexes trailed virtually every foreign market. The Dow is still down 6.8 percent since the end of 1999.

Second, as further proof that even affluent American investors have a misguided trust in Wall Street-driven paper investments, of the 712 investors with household incomes exceeding $100,000, exactly "zero" mentioned placing any part of their mythical $1 million given to invest into gold or silver for safe keeping!

"Among less affluent groups, 5 percent chose gold," admitted the Bloomberg writer.

This tells me that the less affluent are at least taking a 5 percent insurance policy against further declines by hedging with gold ownership. These declines are quite probable in this secular bear market in stocks which began back in 2000. I say bravo for the less affluent! Gold is a friend of both princes and paupers, it seems.

Third, it appears affluent U.S. investors have missed or ignored the biggest paradigm shift in the last 20 years: The new secular bull market in commodities, which began five years ago! Bloomberg continues:

Eight of 10 well-off investors say stocks this year will perform as well as or better than they did on average in the last decade. Twice as many – 21 percent – say stock market returns will be above average in 2006 as say below average. For the next decade, seven of 10 say they expect stocks to do at least as well as in the last 10 years.

As I stated in a January 2005 WND commentary ("Bull Market in Stuff, Not Stocks"):

Tangible "stuff" is where the big money is moving and that means we are still in the early stages of a bull market that could last another decade. The next key is buying the right "stuff" (read: tangibles) and then to be patient. However, if you put your money in the wrong "stuff" (read: stocks only), being patient may not help, but instead it could stunt your growth potential.

Meanwhile, a United States $20 Gold Liberty coin (Mint-State 63) which sold for $600 back in 2001, today is cresting $1,200! That's 100 percent growth in four years, a 25 percent per year growth for an investment that requires no maintenance, no management, no volatility and no worry.

A bull market for every size investor

Yes, the bull market in precious metals has only just begun and now a growing number of market analysts agree. While all investments have risk, and past performance is no guarantee of future performance, conservative estimates are that both gold and silver could exceed the previous market highs of $850 per ounce and $50 per ounce, respectively.

Most investment opportunities today are skewed toward "big" investors on Wall Street it seems, but there are some smart options for those who want big money results with little money to start. Smaller investors often ask me: "What can the little guy do to protect and grow wealth? ... "Stick it in the bank? Buy a 'sure thing' stock? Buy euros? Buy precious metals?"

All may be valid choices, but which one offers the average investor the most safety and profit potential, the perfect combination to today's uncertain financial environment?

The key is to follow the lead of a few smart, value-based investors such as Warren Buffett, who is often referred to as the "Sage of Omaha." Mr. Buffett has made two very smart financial moves in the 21st century: 1) Hedging the dollar's 40 percent decline, and 2) Sinking over $1.2 billion into tangible assets like silver and gold.

Smaller investors should follow Warren's lead, quietly moving into silver and gold as Mr. Buffett has done for the long haul, just on a smaller scale.

A tangible asset diversification strategy will likely keep your assets safe from market shocks. But don't expect a shortcut to wealth, as many investors have come to expect.

A wise long-term investment strategy

Before you invest, please ask yourself these four simple questions:

1. How long do you plan to hold your investment?
2. What level of return do you hope to achieve?
3. What degree of risk are you prepared to accept?
4. What type of liquidity do you need to have?

Based on your personal choices you should adjust your own investment strategy. My hope is that my WND readers are smarter than the Bloomberg-Los Angeles Times average affluent investor this year when it comes to including tangible assets into their portfolio.

Yes, unrealistic expectations still rule Wall Street today. Don't let them rule on your street. In today's short-term investment world, very few investors are thinking beyond a year or two. In contrast, previous generations of investors thought in terms of a generation or two ... or three!

The financial wisdom of gold coins always pays dividends to long-term investors – whether big or small, affluent or not so affluent.

For more on this subject, I recommend a new CD by Joseph Farah on "The Rule of Gold"