Gold Coins and Ingots

Is Gold Bullion Real Insurance?

Scott Hage Gold

Is gold bullion real insurance? What makes it different from the other assets you own in your portfolio? 2016 thus far has seen gold and silver outperform analyst’s expectations with gold up 20% YTD and silver up a whopping 33% YTD. So why are investors interested in bullion? There are several reasons beginning with common sense. Investors have been burned by Wall Street, the banks and the government too many times. Gold and silver bullion is different and gives investors’ confidence in a great economy or a bad one. Unlike other “assets” that can be created out of thin air, silver and gold bullion coins and bars represent tangible wealth you can hold in your hand. A strong argument can be made there is no safer asset to own on the planet.

Millions of investors worldwide have turned to precious metals to protect their assets. When “BREXIT” passed and the UK decided to leave the EU, investors took the flight to safety into gold moving prices higher. The global financial crises of 2008 saw smart money double down hard on gold and silver bullion and as a result became part of the daily conversation on the financial channels.  History tells us gold bullion has withstood the test of time and has always been considered a safety net for retirement assets, and yet is lightly considered by financial planners today. Gold bullion in the form of paper is not a substitute for gold ownership. It may be vital to your financial future that you understand the difference between gold bullion in your hand and ink on a piece of paper.

In fairness to Wall Street real gold can’t make you rich, but it will keep you rich. If the price of your gold doubles in value there is a reason for that – most likely a weaker USD. But what do you have when gold doubles and you convert your gold back into greenbacks? Investors who buy gold bullion believing they are going to create more wealth, are usually left frustrated and disappointed when they hear how much money their friends are making in the stock market. Gold bullion does not give you income. It does not pay you any interest or dividends. What gold bullion does perfectly is protect your wealth when the currency fails, when the other purported safe havens fail. It protects your wealth when the government can no longer keep its promise to pay its debts.

The Wall Street culture has sucked everyone into thinking one way, and if you want to make money it’s the only way to think. This endearing mindset has promoted wealth, freedom, prosperity and the American dream. If you want to preserve your wealth and keep the dream alive during great times or bad, we advise  you place more dollars into hard assets  while the price is still low.

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