GOLD: $1685.63 SILVER: $19.71 PLATINUM: $905 PALLADIUM: $2110
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For nearly 3,000 years, gold has been recognized as an exchange standard for internation trade, with many currencies being backed by gold. However, in the last 50 odd years, governments started adopting paper-backed currencies and IOUs – because of this, the purchasing power of these currencies has been steadily eroding ever since. Despite the removal of the gold standard, gold remains one of the most coveted assets in the world. This means gold is highly liquid. Other investments with relatively low risk, like bonds, CDs, and real estate are notoriously illiquid. This means if you need your money quickly you could end up paying a significant portion of it in fees if you can even get it at all. Contrastingly, gold is often called the borderless currency due to the historical ease of exchanging gold for cash throughout the world.
Gold is recognized by all major governments and central banks. All major banks and central governments are invested in gold, with the largest holders of gold being the economic powerhouses of the world. As Alan Greenspan, the former Federal Reserve Chairman has said, “Gold still represents the ultimate form of payment in the world. Fiat money in extremis is accepted by nobody. Gold is always accepted.“
You’ve worked too hard to prepare for your retirement to simply gamble with your savings. Unfortunately, with your current retirement plan, you may be doing just that. Fox News recommends that even the riskiest retirement portfolios should have no more than 90% invested in the stock market, but with the current economic and political climate, that value of 90% seems to be far too risky. According to a Modern Portfolio Theory, there is no single magic percentage of Gold that will insure your portfolio's financial success, as it will depend on your goals and your age. The percentage in a portfolio can be as low as 10%, while others suggest going as high as 20% on precious metals. The amount you decide on should be influenced by both your personal goals and the market. When bonds deliver low yields and stock markets are struggling, many move their gold holdings up to 20% or more.
In the last few years, the markets have seen an unsustainable amount of growth and volatility - the same thing that happened before the 2008 Financial Crisis, the Dot-Com Crash of 2000, and even the Great Depression in 1929. After the 2000 crash, the market fell nearly 50% and took 8 years to recover, which was immediately followed by another crash of nearly 50% which took over 6 years to recover from. Many economists agree that we are due for a major economic recession, and with the current state of our government and rising international tensions, it may just be sooner rather than later.
Modern Portfolio Theory was first described by the economist Harry Markowitz, and its framework continues to influence investors and financial advisors today. Modern Portfolio Theory seeks to maximize returns while minimizing risk and it applies a mathematical formula to arrive at that decision. To do this, a portfolio must be diversified, and have a balance between riskier investments like Stocks, and safer ones like Gold and Real Estate.
While most financial experts agree that the safest investments are bonds, real estate, and precious metals like gold, silver, and platinum. All it takes is a look at performance and how liquid all these “safe” options are, to come to the conclusion that gold provides the best balance between liquidity and asset performance.
Furthermore, a physical allocation in precious metals provides an unencumbered investment with no counterparty risk, strong liquidity for average to large investors, no dependence on management for performance, provides insurance against failure of all other investments, and is the only asset class with a positive correlation coefficient with inflation.
Most financial experts firmly believe gold is the perfect way to safeguard and grow your wealth. Most financial experts agree that all investors should be diversified, and gold is the ultimate diversifier. This is because the price of gold has historically had an inverse relationship with the U.S. dollar (USD). Normally, when the paper-dollar-backed stock market crashes and the government prints money in excessive abundance, the price of gold goes up. Adding gold to your investment portfolio can as much as double your risk-adjusted returns. Historically, Gold advocates have seen the yellow metal as a safe-harbor asset that protects purchasing power against inflation during challenging economic times, since it tends to hold its value over the long term despite fluctuations. However, many tend to overlook just how powerful an investment Gold is by failing to recognize Golds outstanding performance in the time of aggressive Federal Reserve monitary policy.
Look no further than the 21st century, where gold has performed well against market the average index performance.
Example: $100,000 purchased in gold in the year 2000, your investment would be over $670,000 as of March 2022. However, if you took that same $100,000 and invested it in the market, the returns would have been measurably smaller with the S&P, the NASDAQ and the DOW performance less than half than that of Gold.
* Please consult your financial advisor. The statements above are not investment advice and precious metals like all investments call lose value.
Bullion Bars
Bullion bars are gold in bulk form and are regularly traded on major markets.
Bullion coins are coins made of gold that are valued by weight and are usually legal tender in whatever country they're minted in.
Semi-Bullion coins, often called Semi-Numismatic coins are a cross between Bullion coins and Numismatic coins. The value of these coins are mostly based on the value of their metal content with some additional value added based on the collectability of the coin.
These coins are valued by collectability, rarity, artistry, condition, age, and limited mintage, in addition to the value of the content metal. It is not uncommon for premium coins to be sold at many times the value of the content metal.
Rare and ultra-rare coins have their values based almost entirely on their collectability, rarity, artistry, condition, age, and limited mintage. The price of these coins are rarely linked to the value of the content metal, and instead based on the market’s current demand.