Are you looking for a safe haven investment, a form of wealth insurance to protect your portfolio from potentially devastating economic events? Are you looking for both a store of value and potential double digit growth? Then the answer is most definitely “yes!”
What makes gold unlike other forms of insurance is that not only can gold hold at least a major portion of its value, it can appreciate. If you purchased gold as wealth insurance 40 years ago, your “policy” today would be worth 12 times what you paid for it! Even going back as recently as 2001, your policy today would be worth nearly four and a half times what you paid for it, even after the price decline of gold off its 2011 peak.
Other than a single 3 year period over the last 50 years, anyone who bought and held gold would be in a profit position today. That is to say, had you bought gold in any of 47 of the last 50 years you would’ve made money. How’s that for insurance?
Gold as a Portfolio Diversifier
It’s understood as a universal truth among investment advisors that when it comes to insuring effective wealth management and long-term financial performance portfolio diversification is key. For this reason gold in an investment portfolio remains one of the best ways to diversify.
The value of diversification is that it is a smart way of preparing for a potential economic event. Because gold is of an asset class that operates both outside the stock market and the banking system, no other investment can offer the kind of true diversification and protection for your portfolio the way gold can. With a sufficient percentage of your portfolio exposed to gold, it won’t matter if stock markets crash, bonds lose value, or currency suffers debasement. The hard asset properties of gold will pick up the slack
Investment advisors will recommend holding anywhere from 5% to 20% or more of your overall portfolio in gold. As to the question should gold be included in institutional portfolios, as true as it is for the retail investor it’s even more so to the institutional investor. Billionaires and hedge fund managers understand this and are bullish on gold. John Paulson, George Soros, and others, have invested heavily in the yellow metal. Investors of all levels are being attracted to gold as a solid, tangible, and long-term store of value that has been proven historically to move independently of other assets.
Unlike other paper investments, gold is among the most negatively correlated assets to stocks––when stocks go down, gold goes up. In addition, gold also serves as a hedge against currency devaluation and hyperinflation. Studies have shown that diversifying with gold and silver can have a significant effect on lowering risk exposure in any portfolio.
When it comes to the World Gold Council and investing in gold, their studies show when gold is held in investment portfolios to protect global purchasing power, reduce portfolio volatility, and minimize losses during periods of market turmoil.
Learn How to Protect your Nest Egg Today!
We believe successful investors are willing to do their homework and educate themselves. Before you invest any of your money, make sure to do your own due diligence and get the best information available. You can begin this process by downloading a FREE Gold and Silver Investing Guide that will help answer many of your questions about gold and silver investing.
This gold investing guide will provide answers to questions like these:
Providing answers to questions like these and others our guide offers many important money saving tips. This guide has helped teach many of our clients how to invest in gold like an expert. If you’d like to save precious time and possibly thousands of dollars, you need to read this today!