Don’t Buy Gold Because It Yields Nothing and Other Nonsense

Gold pays zero dividends. The yellow metal provides no income and in fact, may even cost money to hold.

Does that mean you shouldn’t include gold in your portfolio?

A Silly Argument

Some analysts argue against physical gold ownership for these very reasons. Why take $20,000, for example, and buy physical gold bullion when instead you could buy a dividend-paying stock or put that capital to work in a savings or money market account?

We feel it is important to address such an argument, and while we must acknowledge the validity of such an argument, we also feel compelled to point out the silliness of it.

Yes, it’s true. Gold does not pay you a dividend for holding it, and it provides no ongoing income.

What’s to say, however, that the stock you buy won’t go bankrupt and decline to zero?

Do you really think putting money into savings accounts at current rates is going to be of major benefit? Yes, some accounts may now pay as much as 3% per year. Does that really move the ground for you though?

The reality of the situation, however, is that gold is not bought for these reasons. Rather, gold is bought as a form of insurance against a multitude of economic and geopolitical possibilities. These possibilities include inflation, deflation, declining fiat currency values, and more.

Now For Some Perspective

Let’s now put this into perspective: If you own a home, you probably carry a homeowner’s insurance policy (or at least you certainly should). You may pay the premiums for such insurance coverage on a monthly, quarterly, or annual basis. Whatever the frequency of your premium payments, you still pay the insurance company knowing full well that the insurance company will pocket those premiums in the absence of any claims.

While paying for your insurance coverage may not be the best part of your month or year, you likely do so happily for the peace of mind that such coverage provides.

Chances are pretty good that you may file no claims against your coverage in a given year. There may even be a few people that have carried homeowner’s coverage for decades or even their entire lives without filing a claim.

That doesn’t mean that your basement won’t flood tomorrow…

Now consider this:

You regularly pay premiums to insure your home and perhaps other assets from the risk of loss. These assets may be worth quite a bit of money, and you have likely worked very hard accumulating them.

Paying for insurance provides peace of mind and allows you to sleep well at night.

Now think about this for a moment: Your retirement savings or investment portfolio may be your second greatest asset or even your number one asset.

Why wouldn’t you take similar steps to protect your savings and financial future?

We believe that allocating some of your portfolio into physical gold or other precious metals does just that…

Gold may potentially offer you a degree of protection from declining paper currency values and loss of purchasing power, inflation, deflation, economic distress, and other issues.

How can you justify not owning physical gold as part of your overall investment strategy?

While gold may potentially act as a form of insurance for your portfolio, it has one other big potential plus:

Gold may potentially appreciate in value…

Kind of like buying insurance but paying yourself the premiums…

Gold doesn’t pay a dividend and provides no income, yet we feel this asset class is a must-have in today’s geopolitical and economic environment.

If some of the most powerful financial institutions on earth are buying and holding gold, shouldn’t you?

Make sure you take steps to try to hedge your portfolio from many of the risks inherent in investing. If you aren’t including physical gold and other precious metals currently, now may be the best time to consider adding an allocation in these asset classes.

Doing so has never been easier…

One of the simplest ways to begin acquiring and holding gold and precious metals is to buy them through your IRA account. An Advantage Gold account executive can show you how the process works, and if you don’t have an existing IRA, we can even help you set up a new precious metals IRA.

You’ve worked very hard for your savings, now it’s time to try to protect the fruits of your labor. Explore your options and consider an allocation in physical gold and precious metals. Don’t delay.

Talk to an IRA advisor about how to roll over your 401(k) into a Gold IRA by opening a self-directed IRA account, contact us or call us at 800-341-8584 today.

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