Investing In Gold
Gold As An Investment
Is gold a good investment? That is the big question confronting you and a lot of people are probably telling you that it isn't. Well, I am here to tell you that they are wrong and you need some gold in your portfolio.
The two main arguments against investing in gold is that it doesn't give you dividends - so doesn't provide you with any income - and it is moves up and down a lot so it is risky. You probably have heard that there is no way for you to know what gold should be worth.
The truth is a lot of people simply do not understand the proper role that gold plays in a portfolio and simply do not want you to buy gold, because they rather see you buy something else.
A stock broker or investment adviser makes income by getting you into mutual funds and investment vehicles that he makes a commission off of. They don't just make a commission off of a trading fee, but receive commission trails as long as you stay in the fund. The typical fund will charge you a one to two percent fee for investing your money and give your money manager a kickback for keeping you in it.
Well, if you put your money in gold you escape this commission system that is really what makes Wall Street a fortune. So they don't want you to do that.
There are many too that fear if you put money into gold you won't have money in the bank on deposit that the banks can loan out. So people don't like the idea of you escaping the fiat money system by owning gold either.
In other words Wall Street and central bankers hate it when people buy gold, because they want them to stay inside the system so that money can be made off of their assets. Therefore most brokers will tell you it's risky to own gold.
As far as the idea that it doesn't pay you dividends - well in today's ultra-low interest rates it is almost impossible to get much in dividends in anything safe.
Bonds pay almost nothing and neither do CD's.
Most stocks do not pay any dividends that all and those that do have been going up for years and are highly valued now - and that makes them risky.
Besides, the idea with gold isn't to put all of your assets into gold, but to use it as simply one important element in your portfolio.
And it's a critical one, because gold has been a safe haven for three thousand years that provides a protection for wealth in times of turmoil from wars and inflation.
We live in an era in which the United States government is heavily in debt and in an economy going through a financial crisis that is likely to get worse in the years to come. The dollar went off the gold standard in the 1970's and is now backed by nothing.
The price of the dollar fluctuates up and down, but overtime is has consistently been declining in value. The price of everything is going up.
Gold protects you from inflation. That is why it's wise to have a percentage of your assets in gold at all times. I recommend that you consider having ten percent of your assets in the yellow metal.
You can buy gold from a dealer and then own it physically or have them store it for you. Or you can own some in your brokerage account through an exchange traded fund that trades on the New York Stock exchange.
And there are ways that you can actually own real physical gold in a retirement account with a gold ira rollover.
I also own several gold mining stocks in my brokerage account. I have been investing in the financial markets now since before 1999. In fact I ran a hedge fund about ten years ago. I retired and now play in the markets and run this financial blog.
Big mining companies like Newmont do in fact pay dividends. So you can get involved in the metals markets and earn dividends too. It's fun.
You Should Invest In Gold
In fact I think you should invest in gold now. The reason why is for the very reason people tell you not to. That is because of the big moves it makes.
Gold has been in a secular bul market since 2002 when it bottomed under $300 an ounce. The gains since then have been tremendous.
However, gold has had big ups and down. Gold and gold stocks got hit hard during the 2008 stock market crash.
They then rallied up strongly for several years and make a peak in 2011. They then dumped big time again until they bottomed in 2013.
The gold chart shows that the yellow metal is now turning up to go up for the next several years. What this means is that you want to buy now after the big drop we saw in the last gold bear cycle that ended in 2015, because that downtrend is over and gold is now in a bull market. We've had a big bottom and the move from here is up. So you buy on the dips and pullbacks that happen from time to time within a bull market. And it may be time to even consider executing a gold ira rollover safety plan.
So now is exactly the type of time you want to get started with gold. I can help you on this website. Take a free membership to this site and I will give you ideas on investing in big miners and junior mining stocks and updates on the action in the gold market. This is going to be the next big thing in the financial world and you need to be a part of it. Just get on my free email list by clicking here.