Often we hear our clients say, “Let me ask my financial advisor about gold”. Being a savvy investor you should always do your research before making any investment decision. Sadly, when it comes to gold, you may not be getting the whole story from your financial advisor.
Gold’s value to them vs. gold’s value to you
If you are looking to move large sums of money around, the first thing financial advisors fear is that they are going to lose you as a client forever. They know that with every transaction made, they stand to gain or lose a commission. Ultimately, you buying gold will not help them earn commissions. Therefore, gold has little value to your financial advisor which means (in their eyes at least) you should stay away from gold.
Gold’s real value to you is not one your financial advisor wants you to hear. Did you know gold’s annual average return was 26% between 1999 and 2008? This simply crushes how most mutual funds performed during those years. Furthermore, gold offers another level of diversification in your overall portfolio. Is it really smart to tie up 100% of your retirement in mutual funds alone?
Financial Advisors are trained to talk you out of buying precious metals
“Let’s just stay the course,” or “How long have you been with me? Trust me on this…” are both common phrases you will hear. They will inevitably point out a positive track record and show you how much your wealth has grown with them over the past few years. They will also show you where it will be in 5 to 10 years if you keep your money where it is. After all this, most people agree it’s a good idea to “stay the course”.
It’s ironic because how a financial advisor “proves” your mutual fund is the better option, is the same way gold can be proven to be a better investment option as well: higher rates of return, what your money would look like in 5 to 10 years and the benefits of staying the course. It’s time to be blunt with you financial advisor and get some straight answers.
Here are a few questions you should be ready to ask next time you and your financial advisor meet. You will find they may not have all of your best interests in mind.
- How are your commissions structured with relation to my account?
- If the mutual funds you’ve showed me have an annual average return of 9%, what about gold, which has more than doubled that?
- Beyond mutual funds and real estate, what are other ways to diversify my retirement?
Listen with an objective ear – you may be surprised by the answers. If you understand the value of diversification beyond mutual funds, then allow American Bullion provide some of the answers you seek. Call us today at (800) 326-9598. It may be time to consider your options outside of the stock market.