Physical Gold Investment

How Do I Know that Physical Gold Is a Good Investment for My Retirement?

Is Investing in Physical Gold a Good Idea?

A Maybe the better question is, “What can gold do for me that stocks can’t?”

Plenty, as it turns out:

• Gold is a hedge against inflation (and deflation too). This has been proven by studies. One important study discovered that gold is “the most effective indicator of rising inflation.” How does gold do this? By rising in price.
• Another study found that “A 5% investment of an equity portfolio in gold resulted in lower risk and higher return on assets.” Some experts will argue that for optimal downside protection an allocation of 6%–25% is even better.
• There are many studies that have shown that gold and precious metals are one of the few asset classes with a positive correlation coefficient with inflation. That’s not all: Precious metal are shown to be “the most positively correlated asset class to inflation.” Gold not only goes up with inflation, it actually increases at several times inflation’s rate.
• One research paper clearly showed gold’s importance to a diversified portfolio due to gold’s “unique properties as simultaneously a hedge instrument and safe haven.”
• As tangible, hard asset and part of a separate asset class, gold offers you the ability to diversify unlike any other investment.
• The Federal Reserve has been steadily increasing the money supply. What are the consequences to that? Even increases of as little as 1% in the money supply can trigger an average 0.9% increase in the price of gold––6 months later. Add to that Quantitative Easing and gold’s price should rise significantly.
• Gold is also an excellent indicator of money’s velocity (the rate at which money is exchanged from one transaction to another). Especially in the U.S., Gold’s price anticipates an increase in the velocity of money and interprets it as future inflation.
• And if that weren’t enough, gold has proven itself time and again as a haven against currency storms and black swan events.

So, as to the answer the question: “Should I invest in physical gold?” Given the facts, what do you think now?

Physical Gold vs ETF as Investment Opportunities: Physical Gold, Not Paper Gold

One of the crucial reasons for buying physical gold is that it is an investment that is outside of the financial system.

While it’s easy to buy instruments like paper gold on the stock exchange, they are subject to all of the risks and liabilities of the stock market. Only physical gold gives you insurance and hedge against all your other investments.

When the next market meltdown comes, paper won’t give any of the protections of actual physical gold.

What Is Paper Gold?

• Exchange-traded Funds (ETFs), Exchange-traded Products, and Close-ended ETFs: While they may have 100% bullion backing they are still beholden to exchange, premium, and liquidity risks.
• Unallocated Bullion Programs: In this investment you only get your physical gold when you sell, otherwise it’s only a promise. If your provider goes under, the promise you will be holding will be worthless.
• Shares in mining stocks: These are inherently risky as they are exposed to exchange and fiat currency risks. They are not a safe haven for savings.
• Leverage accounts: Put simply, when you introduce leverage, you introduce risk. A leverage account enables the investor to own more gold without paying the full price for it. The downside is, of course, if the investment loses money, your losses are exponentially greater. You are going up against a mathematical formula plus compounding fees engineered to work against you.
• Future options: Another version of the leveraged casino game. Unless you’re an aggressive investor or a day-trader who really believes you know what they’re doing, stay away from these.

Bottom line: Paper gold will never have the secure, long-lasting value of physical gold.

Learn How to Start Protecting your Valuable Savings, Now!

Before you invest any of your money, make sure to do your homework and get the best information available. You can begin by downloading a FREE gold and silver investment guide that will help answer many of your questions about gold investing and coins, which coins are the best investment, and investing gold in an IRA.

In our gold guide you’ll find answers to questions like:

• What’s the Best Way to Invest in Physical Gold?
• How to Buy a Gold IRA?
• How Do I Rollover my 401(k) into Gold?
• How Do I Know Investing in Physical Gold Is Safe?
• Should Put Gold into a Retirement Account or Take Direct Purchase?

Full of answers to these and other questions as well as many important money saving investment tips, this guide has helped 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.