Investing in Gold
Facing ongoing crises in financial markets, the eroding effects of inflation, and geopolitical and economic uncertainty, more and more investors are diversifying their paper-backed portfolios with physical precious metals.
You may be shocked to learn how badly U.S. stocks have performed in the last 15 years.
Let’s say you had $100,000 on January 1, 2000 invested in the NASDAQ Index, your portfolio would be worth only $54,928 in January 2010.
Or, let’s say you had the same money in the S&P 500 Index. Your investment would have lost more than 23%!
That same money, invested in gold would have yielded a portfolio worth $397,152!
Results on $100,000 Invested in January 2000
Investing in gold can reduce the overall volatility of your retirement portfolio and play a part in your efforts to create a safe, stable, and profitable future.
Purchasing Power Protection
In the 1920s, an ounce of gold worth $20 could easily purchase a high end tailor-made suit. Today, that same ounce of gold still buys a high end tailor-made suit. The U.S. twenty dollar bill, however, will not even cover the cost of a nice tie. Gold’s purchasing power and wealth preservation have a proven track record, even prior to the start of our modern financial system.
Adding gold to your portfolio adds diversification, which helps reduce the overall volatility of your portfolio.
Hedge Against Geopolitical and Economic Crises
Reckless monetary policy, crippling national debt, inflation, market crashes, geopolitical conflict, and other crises can damage the value of any paper-backed assets in your portfolio. Physical gold, on the other hand, traditionally holds its value even when the economy is down, making it an effective hedge against such threats.
Aside from being an excellent source of value, gold is a very liquid asset. As a globally recognized currency, it can be readily converted into cash or goods as needed.