What type of investment is NOT considered valid for endowment care funds?

The reasoning behind choosing precious metals as a type of investment that is not considered valid for endowment care funds stems from the specific regulations governing how these funds can be invested. Endowment care funds are typically designated to ensure the proper maintenance and care of cemetery grounds and facilities over time. To protect and preserve the fund's value while ensuring it remains productive, regulations typically favor stable, income-generating investments.

Investments like first mortgages, government bonds, and income-producing improved real estate are permitted because they provide a reliable stream of income and have a lower risk profile. These types of investments can support the long-term sustainability of the endowment care fund, ensuring the cemetery's maintenance needs are continuously met.

Precious metals, while they can appreciate in value, do not inherently provide income in the way that the other investment types do. As a result, they don't align well with the goals of endowment care funds, which prioritize generating a steady income to fund ongoing maintenance rather than merely appreciating in value over time. This ensures that the funds can be utilized effectively for the intended purpose of caring for cemetery properties.