3 Reasons to Add Gold to Your Portfolio Right Now

When many investors think of investments in gold, they think of higher gold prices. Investors have been thoroughly trained to think of investments in terms of if I buy XXX at $10 and sell it later at $20, I have made a 100% return.

Now, let’s be clear. There is nothing wrong with buying low and selling high. And who wouldn’t want to make a profit on an investment. Gold, however, offers numerous intangible benefits in addition to the possibility of higher prices. Many of these other potential benefits could come in handy in the months and years ahead.

Here are three reasons you need to have a significant allocation in gold right now:

 

  1. Gold carries no counterparty risk: Think counterparty risk isn’t important? Think again. Every single time you invest in a paper asset, you have counterparty risk. Companies and governments can and do default on obligations. Currencies can and do fail. History has shown these issues to be true, and owning physical, hard assets like gold may potentially provide a degree of protection. Gold cannot go bankrupt or default, and its inherent value is recognized all over the globe.
  2. To hedge against inflation: Just because the Fed has not yet been able to spur significant inflation doesn’t mean that inflation will remain dormant forever. The last decade of ultra-low interest rates and money printing will come with a price tag, and that price could be rampant inflationary pressures. Inflation erodes the value of assets, and eats away at real returns. Hard, physical assets like gold may potentially provide a meaningful hedge against inflation, as they may hold their value better than other assets or even increase in value.
  3. The dollar may continue to weaken: Fiat, or paper currencies, have historically lost value and purchasing power over time. This is nothing new, and modern day government debt levels and spending may simply speed up the decay process. As the value of your dollars declines, the effective cost of everyday goods and services increases. Imagine for a moment paying $5 for a loaf of bread or having to shell out $150 to fill your gas tank. Hard, physical assets like gold do not have the same tendency to lose value over time. Gold has been considered a reliable store of value and protector of wealth for thousands of years: a reputation that is not likely to change any time soon.

 

Higher gold prices may simply be viewed as the icing on the cake. If you don’t think you need assets like gold in your portfolio, now is the time to reconsider. Just ask those who invested in stocks that went bankrupt or those who lost tremendous wealth during periods of hyperinflation.

Adding physical gold to your holdings has never been easier than it is today. Simply pick up the phone and speak with an Advantage Gold account executive today. Our associates are here to answer any questions you may have about investing in gold, and can even show you how to quickly and conveniently use your IRA account to make such investments.

Don’t wait for the next major default, currency crises or hyperinflation to take a bite out of your holdings. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started today.

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