Moves Independently from Traditional Securities
Gold is a physical asset, meaning you own something you can hold that has inherent value. In contrast, stocks are equities that signify partial ownership in the issuing company, with no inherent value.
Gold is also among the most negatively correlated assets to stocks -when stocks go down, gold prices go up. That is why we strongly recommend allocating up to 20% of your overall financial portfolio to precious metals and rare coins.
An Ideal Way to Mitigate Risk
Every sound investment strategy should include limited high-risk growth investments offset by less vulnerable and easily liquid holdings. As this risk pyramid demonstrates, gold is safer and more liquid than even cash, providing a stable foundation for building a well-balanced portfolio.
Gold vs Stocks Since 2001
This conversative investment offers the highest short-term returns. One-ounce gold bullion coins minted by the U.S Mint move dollar-for-dollar with the spot gold price. Investment grade gold, also known as “bullion with muscle” offers the same benefits as bullion but with higher profit potential.
This graph shows a 2001 investment in gold bullion had grown 331% as of 12/31/16. That same investment in S&P 500 stocks grew only 72% over the same period of time.