7 Solid Advantages of Owning Gold – #1 Diversification

 

While diversifying your portfolio is not an absolute guarantee against loss, it’s certainly the safest way to reach your financial goals through investing. Many professional investment advisors – and I am one – maintain that diversification is the single most important component in building a successful and profitable investment portfolio.

Why?

Gold Plans for Gain and Protects Against Loss

Here’s a diversification analogy I’ve always liked: say you saw a street vendor in New York City, and that vendor was selling umbrellas – and sunglasses as well. Now, umbrellas and sunglasses have no relation to each other, so you might think that’s odd. But here’s why the street vendor is almost guaranteed to be successful: when it’s sunny – the vendor’s got sunglasses – and that’s what people want to buy. The vendor will clean up. When it’s raining – people need umbrellas – and again – the vendor will sell out and make a profit. That’s the point about diversifying: rain or shine – that vendor is going to make money.

Diversifying an investment portfolio works the same way. It’s important to analyze the variables and put your investment dollars where they will work hardest and do the most good. But it’s also important to have a number of different kinds of assets; having only two assets, or even just a few different investments won’t do it. Successful portfolio diversification means that you strategically plan for the possibilities for gain and protect against the potentials for loss – by spreading your money across a number of different categories of investments. That means that – if you’re a New York City vendor – you buy and carry an inventory of mittens, fans, bottles of water, knit scarves, t-shirts, sundresses, and galoshes – because that way you’re going to make a profit in virtually any kind of weather.

Gold Diversifies Your Investment Portfolio

That’s exactly the kind of security that investing in precious metals offers as well, and diversifying your portfolio is based on exactly the same principle – plan, protect, and cover all your bases. That’s where the solidity of gold and silver comes in – it’s an asset that offers stability because it’s going to be in demand – no matter what kind of weather may rock the boat.

Here are 7 reasons why precious metals help create a good balance in a diversified portfolio:

  1. The value of gold and silver is a hedge to asset fluctuations like inflation, deflation, exchange and interest rates.
  2. Governments and paper currencies rise and fall, but precious metals have transcended the test of time and will never fail.
  3. Precious metals tend to hold their value or appreciate during periods of political instability.
  4. Gold and silver raises the stability of an individual’s investments.
  5. A portfolio diversified with gold and silver is the only way of providing wealth insurance to keep an individual’s portfolio safe.
  6. Gold and silver can both protect a retirement portfolio and allow for long-term gains.
  7. Many experts believe that adding gold to a portfolio often improves its performance.

My name is Mike Rowlands and I’ve been a precious metals investment advisor and Wealth Coach for 15 years. I help people realize their financial goals, dreams, and a lifetime of economic security by helping them develop personal strategies for investing in gold and silver; the one investment that is globally recognized as intrinsically valuable.

An Investment Advisor is a Long-term Financial Relationship

Investing is highly personal, and as a Wealth Coach my goal is to help my clients assess their long term financial needs through analyzing their age and time horizon, the amount of capital they have to invest versus their future capital needs, and their personal principles in terms of risk tolerance and asset allocation belief system. As a Wealth Coach, I specialize in creating a lasting relationship with my clients, a relationship that is based on their success, because their success is my success.

An Investment Advisor Helps Define Your Financial Security

I not only advise my clients – I educate them on exactly what financial security looks like and how to achieve it. Stocks, bonds, and cash are all highly correlated and affected by the instabilities of today’s world. By adding gold and silver to your investment portfolio – you “hold” your investment portfolio steady when Wall Street rocks to the tune of geopolitical unrest and global catastrophes. Diversifying your investment portfolio minimizes your risk –while it can maximize your returns.

Investing in precious metals is my living because it is fundamental to my personal belief system and philosophy; I’m not in it to “make a buck.” My livelihood and sense of integrity are based on the financial growth my clients achieve as a result of their belief in me, and in the value of gold and silver. This is why my client’s goals are my goals. My job is to help them figure out what those goals are – and then help them get there.

Learn What Investing in Precious Metals Can Do for You

I believe in having integrity, giving value for value, truth, and honesty; those are my own personal principals, and the mission statement of Scottsdale Gold and Silver as well. I believe in investing in precious metals because I invest in them myself. I have first-hand knowledge of the advantages of this investment program because I’ve helped innumerable clients invest in precious metals, and I’ve seen first hand the solid, tangible, and profitable results of this investment strategy. Gold is the one and only currency that has held it’s value throughout history, and you can’t argue with thousands of years of success.

If you’re curious about gold and today’s markets, or you’ve always wanted to know more about it, I’m always happy to just sit down and chat with you about precious metals as an investment; it’s an endlessly fascinating subject with an amazing history. Call and make an appointment today to start learning what an investment in gold can do for your portfolio. I welcome a chance to help you discover the exciting potential of investing in gold, and what it can do for your future.