The $7.4 Million Secret about Building a Gold Fortune

In a recent story on Fox News it was reported that a man inherited approximately $7.4 million dollars’ worth of gold from his cousin. The story mostly focused on the what and who aspects of the details such as how many gold coins were bequeathed, stock holdings and other assets such as his home. The real lesson to be learned from this story are in the details of how. How exactly did the original owner amass such an immense fortune in gold?

Dollar Cost Averaging:

It appears that our gold-hoarding hero simply bought gold bullion month after month for many years. At the time of his passing (age 69) he had eventually amassed close to 2700 coins of various sizes. By taking a simple set amount each month to purchase gold, he was able to eventually build a fortune.

At first glance it doesn’t appear the math adds up. “He would have to spend about $1700 a month just to buy one gold coin…” some may say. The fact is, 20 years ago gold was hovering right around the $350.00 per ounce mark. By focusing on dollar cost averaging, it’s easier than you may think to grow your wealth with gold.

Long Term Investing:

It seems our gold hoarder rarely sold his coins. Even during the 90’s when gold seemed to be at a plateau, there remained one simple fact. Gold never goes to zero. It is a true safe haven investment because gold will always be worth something. Furthermore, if you want to protect your wealth from inflation, buying a steady supply of gold each month is a perfect way to do offset this.

This may sound like “investing 101” but if you want to really see the returns from your long term investments, you need to buy gold and wait, not wait to buy gold. Stay the course and keep your eyes on the long term goal.

The Value of Gold vs. Other Assets:

Gold wasn’t the only asset in this story. He had a money market account, a classic car totaling $17,000 and his home which sold for $112,500. However, the fact remains the overwhelming majority of his wealth was in gold bullion. Simply by remaining focused on this asset alone, he was able to create a fortune.

We’re not saying to place all your eggs in one proverbial basket. Diversification is vital in any investment portfolio, however when a story like this surfaces it’s hard to deny the value of gold as an investment. If you have yet to include gold bullion in your wealth and investment portfolio then call us today and talk to our knowledgeable staff about your options.

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

American Bullion specializes in adding gold and silver to retirement accounts. If you have a question or would like to know more about your investment options, please call American Bullion at 1-800-326-9598 to speak with a precious metals specialist.