7 Solid Advantages of Owning Gold – Gold & Silver are Tangible Assets
Gold & Silver Coins, Jewelry, & Bullion are Real, Tangible Assets
As a Wealth Advisor, one of the most vital concepts I need my client’s to understand is that – as an investment – gold and silver are in a class of their own. They aren’t an abstract “concept” of value, like paper currency or bitcoins. They aren’t “representations” of value, the way stocks or bonds are. Gold and silver are actual, tangible assets. What do I mean by “tangible?” Well, here’s what that word literally means:
adjective: perceptible by touch; clear and definite; real
noun: a thing that is perceptible by touch.
And that’s exactly what sets gold and silver apart: you can touch, handle, and hold it. Whatever form a piece of gold or silver takes – it is palpable, physical, visible, substantial, solid, concrete – and utterly real.
Gold & Silver – Valued Down Through the Ages
Gold and silver have existed in real time and real space, in the same way, and in the same form for thousands of years. The first reference to gold and silver’s value was in 3100 B.C, before the concept of writing in language was even invented. And not only are gold and silver still recognized as valuable today, but that value has steadily increased throughout the centuries.
The world has considered a lot of things valuable and used them as currency for millennia – cows, stones, salt, shells, spices, tea, mirrors, and tobacco to name just a few – but there just isn’t any other “thing” of value that has the kind of track record that precious metals have. Cows come and go, tobacco goes out of fashion, spices are $.99 a bottle at Walmart now, but gold and silver have literally never – ever – not been valuable.
Why “Holding” the “Real Deal” is So Important
When I talk to my clients about “diversifying” their portfolio, or making sure they’re protected against inflation, or providing a financial safe haven for their family – I am not just talking about “investing” in gold and silver, I am talking about actually holding gold and silver. I am talking about keeping gold and silver safely at hand, in your possession, so that it is always accessible to you should the unthinkable happen – as it so often has (remember Katrina?).
Real Gold – or Gold Certificates? Do You Want a Seat – or a Certificate?
Now, a lot of my clients think that holding a gold certificate is the same thing as having and storing their actual gold, however – here’s an analogy that my father uses: let’s say you’re on a pleasure cruise on the Titanic (my father likes strange analogies). And as you board the ship, the Captain greets every passenger and offers them either an actual seat in one of the lifeboats, or a ticket entitling them to a seat in one of the lifeboats. If you take the actual seat – you go directly to a lifeboat and get in. But if you take the ticket that entitles you to a seat, you get to go on up to the opening night shipboard gala first, and dance and eat and have a fabulous time, because you can get your seat in the lifeboat later. With your ticket. Because, hey – you’ve got a ticket for a seat, right?
It’s pretty tempting to take the ticket, isn’t it? You get to eat and drink and dance for awhile, but what happened when the ship hits the iceberg?
The Titanic only carried 20 lifeboats, and 48 was the number of lifeboats that would have saved everyone on board. The designers and owners of the ship cut down the number of lifeboats three times, so there would be more room for “more pleasurable pastimes.” So – if you had a ticket for a seat in the lifeboat – chances were 3 to 1 that the seat didn’t exist in the first place, which was one of the reasons that almost two-thirds of the people on board the Titanic died.
Actual Gold = Actual Seat in the Lifeboat
The bottom line – and whole point of this story – is that the only sure way to survive the sinking of the Titanic was to have – and be sitting in – the seat on the lifeboat. The real, actual seat. Having a ticket might have gotten you a seat, but chances were good you’d still miss the lifeboat, because there were too many certificates – and not enough seats. So, when it comes to your family’s welfare – what do you want for them – seats – or tickets for seats? Gold versus certificate for gold?
The problem with pieces of paper is that they’re fragile. Paper can be altered, destroyed, lost – or simply not honored. A piece of paper only has value because a collective group of people agree to say it has value. But when trouble hits, those agreements may not hold. The problem with certificates of gold, or ETC’s is that they are still pieces of paper, and as such, the definition of ownership of the gold is not always clear-cut. Plus, certificates and ETC’s are still vulnerable to a run on a bank’s gold on deposit, or subject to improper allocation.
Direct Ownership of Gold
This is why actually holding gold and silver, in whatever form you prefer, whether it’s coins, or bullion, is a measure I have taken myself, and one which I strongly encourage my clients to take as well. The best and most convenient way to own gold is through bullion coins like the British Sovereign, South African Krugerrands, Canadian Maple Leafs, or American Eagles. Physical gold bullion can be bought in a number of countries as well. As a Wealth Advisor, I cover all of these options in careful detail for you, in order to help you make the best investment decisions possible.
There is simply nothing like the peace of mind that comes from knowing you physically have a portion of your assets in your possession, safely stored in a secure place of your choosing. When you have that, you know you have the means to care for your family no matter what national, global, economic, or natural disaster may come down the pike.
Gold & Silver – the Tangible Truth
For me, and for my father before me – investing in gold is not simply a wise financial choice, it is – in effect – part of our philosophy of life. A philosophy is a belief system that acts as the guiding principle for behavior, and for my family – our philosophy, our behavior centers around holding truth and reality as the foundations of an honorable existence.
This is part of the reason why I believe – with my entire being – that investing in gold and silver is vital to an individual’s financial well being. Gold and silver are absolutely tangible – they are real. Not only do they physically exist – they have existed in the same form for literally thousands of years. In ancient cultures, gold became a symbol of immortality because it does not corrode, rust, or oxidize it, and it has kept that kind of value down through the centuries, right up to the present day, and its value just continues to increase.