Gold and other precious metals are, we believe, the best investment you can make to securely diversify your portfolio and protect your retirement. We believe that when you invest in gold and other precious metals (or just precious metals) you can potentially realize market gains while simultaneously offering true diversification. Many asset classes that were supposed to provide safety during the previous dark times of the equity markets failed to do so. In fact, many performed as bad or worse as the broader stock markets. Let’s look at a handful of reasons why you may want to invest in gold.
Gold and precious metals have historically been sought out for their safety. This may be attributed to the nature of how they have actually performed throughout many of the economic collapses and wars the world has endured over the years. When you invest in gold, you get access to a sort of financial “safe heaven” which acts as a potential hedge against inflation, deflation, and eroding paper currencies. It is also a recognized monetary asset class around the world. These are important qualities that you will have difficulty finding in other investments. We believe owning gold and other precious metals is for the longer term minded investor, the smart, market aware investor who knows diversification into precious metals is the best way to prepare for an uncertain world.
Performance: Tradition Gold was established in 1998. We’ve been analyzing gold’s performance year in and year out and a lot has happened since 1998! We’ve witnessed virtually every market scenario, short of a world war or complete global armageddon. In short a fact we continually point to; Gold has returned 331.78% vs DOW 126.16% & S&P 183.86%.
Diversification: When you invest in gold, you gain powerful diversification and protection for your portfolio in times of crisis and uncertainty. Gold is a safe haven in times of market disturbances caused by varying factors such as economic, geopolitical and monetary events. Precious metals add valuable diversification and active return on investment.
Personal Protection: Precious metals are certified, weighed, tested for purity, and issued by select and secure minting process. Gold is very difficult to counterfeit or copy. Precious metal fraud rarely happens and is non-existent when compared to all other types of fraud.
Liquidity: While it isn’t terrible to have some illiquid assets, it’s vital a portion of your wealth is vested in assets that you can sell quickly if needed. Some illiquid assets have the potential for long-term gains, but you have to be in a situation where you don’t need to sell them; you need to be able to hold onto them until the opportune moment when they have appreciated in value—and there’s someone willing to buy them. Liquid assets are those that you can access quickly. In some cases, even cash can be somewhat illiquid. Think about a certificate of deposit. With a CD, your money is tied up for a set period of time. You can’t access it early without incurring sometimes-hefty penalties. When you look at your asset allocation, make sure you consider how you will access some of your wealth if needed.
Those are just a few of the many reasons why you may want to invest in gold.