Do Gold and Silver Have A Place Inside My Portfolio?

During our First Friday LIVE this past week I spoke with Ryan Long, President of National Gold Consultants in Monticello, Minnesota. We focused on gold and silver and if they might have a place inside your investment portfolio. 

 

Why might you be interested in gold and silver as a form of investment? One thing to consider is that it is wealth insurance. When you consider traditional investments, they’re something that you trade and take out. With gold and silver, it is more of a long-term strategy. If you decide to invest this way, you’re investing for the long haul to get that protection. 

 

I think an important thing that we keep in mind is that because gold and silver is wealth insurance it needs to be coordinated. What do I mean by that? We need to make sure that this type of investment makes sense in your overall strategy. 

 

We know that you have to have income, so if you’re in retirement or close to retirement, that is one of the first things that we need to establish. Make sure you have a strong retirement income base. 

 

We spoke in more depth about this in a previous blog post, How Can I Create Income In Retirement. 

 

Wealth Insurance and Inflation

If we don’t need as much income as your assets can generate then we can look at Gold and Silver as well as other Long Term Care and other investment strategies. If you need as much income as your portfolio can generate, then we don’t suggest you take less income just so you can add gold and silver.

 

We focus on the income first and then if it makes sense, we can look at buying gold and silver.

 

Another thing to consider when talking about gold and silver is inflation.

 

When you add nearly 40% more money into circulation in one year, that doesn’t bode well for what’s going to happen to our dollar’s purchasing power. 

 

There’s not a better hedge against inflation than gold and silver. 

 

Currency vs. Commodity

 

There are different ways that you can buy gold and silver, but of course, you can use gold and silver ETFs as a little bit of a hedge inside of your portfolio. 

 

You can have gold and silver in an IRA account or any Roth. You can own physical gold and silver bars in these accounts too, but they have to be kept in a vault. 

 

When we are talking about these two options, Gold and Silver is a commodity. 

 

If you’re taking money that you just had that is in savings and you buy the physical coins, that you physically take the position of, that’s currency. 

 

The difference between commodity and currency is important. 

 

The currency is where it’s the wealth insurance. It’s private. It is liquid because these are coins you can get. 

 

For example, you give a dollar to the bank and they give you two rolls of pennies back. It’s a completely anonymous transaction and that’s all we’re doing here is you’re converting your dollar, whether that’s actual greenback cash or you know it’s or it’s in that account. 

 

All you’re doing is you’re just transferring from this digital currency to a hard currency, and it’s completely anonymous when you purchase and also when you liquidate. 

 

So remember, Gold and Silver ETFs or new coins or new bars that have that three-letter partner involved, the IRS, is a commodity. Position is 9/10s the law, physical coins that you physically possess is currency.

Integrity

The last thing that I think is very important to talk about is integrity.

 

When you’re getting into gold and silver there are lots of commercials on TV and different information flying around, but you have to really think about where they’re coming from and if they’re spending all of this money advertising, they’re taking it from somewhere.

 

It’s important to know that gold and silver are great currency tools to use. However, you can sell it without even having a driver’s license. So that’s something that I think is important to think about.

 

Think about the integrity and character of the person or company that you’re going through.

 

That’s why we work with Ryan because we know him as a person and the integrity that he and his company has. He has gone through the process of being insured by Nationwide, which just backs his integrity even more.

 

We are confident that he will be the best connection for you if you have any questions about gold or silver. There’s no cost to connect with Ryan and ask your questions, so don’t hesitate to reach out.

 

If you have questions on this topic, or any other retirement or investment strategy topics, please let me know. Schedule a call with us and we will connect you with Ryan or whoever the best contact would be.