Can the Average Return on Your Gold Investment Compete with Stocks?

What Is the Best Performing Asset of the 21st Century?

Care to guess? How about a stock market that has already had two bullish rides in this young millennium? Or bonds or mutual funds?

Nope.

Remember the two crashes? And the global property slump that followed after the year 2000? This didn’t do the stock market any favors.

If not stocks, what then? How about gold?

Bingo.

2013 not only marked gold’s first drop in 12 years, but the first time it lagged inflation since 2001. Considering other investments, that’s a pretty stellar performance. But let’s take a deeper look at history. Let’s go back 40 years to 1975. From 1975 to 2015 gold’s cumulative change is 582%! This beat all other commodities, inflation, housing, and cash. Going back to the crash on 1981, the worst year for investments generally, gold still performed better than stocks, bonds, and overseas equities.

For the 21st century, gold is up 340%. How’s that for an average return on investment? Compare that to corporate bonds which have grown at a relative modest 160%.

But what if you don’t plan on holding your investments for that long? How about over the last 10 years? In that time the Dow Jones––as was mentioned before, enjoying two bullish runs––grew by an impressive 172%.

Gold? How about 271%? Gold left the stock traders in the dust.

Gold Is in a Class All Its Own

Of the many advantages of gold, one of the most important is that because gold and other precious metals are of a different asset class, they tend to rise in price when other investments are falling; it protects against rising inflation; and next to cash, it is the ultimate in liquidity––it can be bought and sold easily.

Investment advisors universally recommend portfolio diversification for effective wealth management and long-term financial performance. Gold investments such as bullion coins are the best way to you can diversify your portfolio because they perform independently from the stock market. This is why many financial advisors recommend an asset allocation of up to 20% of your overall financial portfolio to precious metals. Gold and silver should be considered prime candidates for helping balance the equity, interest rate, and real estate––yes, real estate––risk in your broader investment portfolio.

Decades of market research and hands-on experiencing working intimately with our clients’ investment objectives have shown us that as an asset allocation strategy, gold offers the best performance over a period of five or more years.

Gold for the Future

The year 2015 could be a banner year for growth for gold and precious metals. Many respected financial advisors and precious metals experts including Fund Manager Jim Rogers, analysts Peter Boockvar and Peter Schiff, Swiss economist Marc Faber, and billionaire David Einhorn all see a bullish year ahead for the precious metals market.

What’s so special about the year ahead?

• After years of Quantitative Easing and zero percent interest rates, it’s looking more like this will be the year that they rise.
• Increasing demand from global central banks, and especially China, as they attempt to diversify their risk by buying gold.
• Currency wars are happening throughout the world and money is being debased. This usually has a very positive effect on the value of precious metals and gold
• Industrial demand for gold, including jewelry––which already accounts for about 55% of global demand––will increase as economic growth in the developed economies is expected to increase.
• Gold, at its current low price, is at the production threshold. This will likely slowdown industry operations as mining becomes less profitable. This will lead to a dwindling supply of the gold.

Start Protecting Your Nest Egg Now

Transferring a portion of your retirement savings to gold can help to protect your retirement from the highly fluctuating stock market. But before you do anything with your hard-earned money, make sure you do your homework and get the best information available. You can begin by downloading a FREE mini-course that will help answer many of your questions about gold IRA rules, gold investing and coins. Full of important money saving investment tips, this guide has helped to teach many of our clients to invest like experts. If you’d like to save precious time and possibly thousands of dollars, you need to read this today!

An investment portfolio that isn’t diversified could be leaving your retirement in danger. The clock on your money is ticking. Don’t wait to protect your assets.