Protecting your wealth
During many financial crisis over the centuries investors have turned to Precious metals in general, and in particular Gold & Silver to protect their wealth. This was especially true during the financial crisis of 2007 - 2009. Our clients who allocated 10 to 15% of their investable assets to Gold found that the gains in gold more than offset the losses to their stocks and bonds. During that period when stocks were down 40 - 60%, gold was up as much as 487%. Historically precious metals have had an inverse relationship to other investments; ie: stocks, real estate, the US dollar. A side note here. In managing portfolios for over 26 years I have learned that you want to avoid chasing the latest shiny object. When a particular investment is hot, like the stock market, the real estate market and crypto currency today to name three, you are paying a premium when you chase it. It is often wise to look at what is not "hot" and place your money there. Quite often it is greatly undervalued. Gold and Silver are greatly undervalued right now. As the old saying goes, "buy low and sell high". By avoiding the current "hot" segments you also avoid buying in at the peak with nowhere to go but down. A good example of this is a stock market investment strategy named the "Dogs of the Dow". The way this worked is every year the investor would move their money into the 10 worst performing stocks of the Dow Jones Industrial Average from the previous year. Thus avoiding chasing the shiny object and investing in poor performers from the previous year on the belief that they had more upside potential. Buy low, sell high. It often works.
It is also true that Gold offers protection against inflation. As you probably know, a dollar isn't worth what it used to be. Compared to 1975 the dollar is only woth about 20 cents. In other words the buying power of the average US citizen has declined by as much as 80% over that time frame. And it is decling even more now. Another good reason to add Gold and Silver to your portfolio. As you may know the US dollar along with the currencies of many other nations, were backed by Gold and Silver for many decades. That is why we have Fort Knox, to store that Gold and Silver. A currency that is not tied to a permanent asset is called a fiat currency and that alone is not a good thing. Many believe that many of our country's financial problems would not exist were we still on the gold standard. But, like it or not we are not. Not being on the gold standard is also a major reason we have the amount of inflation that we do. As you have seen in the media, when the government needs more money than they have they vote to increase the debt ceiling. Put another way they print more money without any assets to back it up. One of the primary causes of the decline in the value of the dollar and the subsequent decline in Your buying power. That's why when I bought bacon this week it was $8.80 instead of the $7.40 I paid last week. That's almost a 20% increase. I mention this to point out that Gold and Silver also protect you from inflation.
I use the only Gold & Silver resource that is licensed, bonded and a member of the Better Business Bureau, National Gold Consultants. They do not use National advertising like their competitors but rather work thru a newtwork of licensed Financial Advisers like me. No expensive television ads or expensive celebrities allows NGC to pass those savings along to you when purchasing gold and silver.