With inflation no longer appearing to be "transitory" as the FED would like everyone to believe, now is a good time to consider diversifying your portfolio with some physical gold. Yes, physical gold! You might ask, why invest in gold? It has hardly performed over the past 10 years. Well that time is now as we are right on the precipice of the FEDs transitory narrative undoubtedly falling apart. Physical gold such as a gold eagle 1 oz coin acts as a physical store of wealth for your money and is considered legal tender in many states. It's a great diversifier like bitcoin and acts as a hedge against inflation. At the current moment, the charts look exceptionally bullish for the long term. We need to see sustained movement above $1,835 to confirm, which would give us the potential of the price of gold to easily break above the most recent high of around $2,000 and end 10 years of sideways performance. At this point we would be in a price exploration phase and the heights at which the price could reach is unlimited unless proven otherwise by a confirmed change in trend.
Gold cannot simply be created digitally or out of thin air and must be extracted from the earth which requires immense amounts of energy, expertise, heavy equipment, cash and most importantly, time, to extract physical ore from the ground to be refined. There is also a limited supply of gold within the earth that can be mined economically/possibly. This is why gold has been the best performing asset in the past 5,000 years as it is the basis of the supply and demand model and has outlived many of the failed currencies of past civilizations. Once demand peaks during inflationary times when people are looking for the exit into safety, price is sure to explode with growth.
When it comes to investing in gold, it is recommended by many wealth advisors to have at a minimum of 5% of your total wealth in physical gold with a max allocation of 20%. While one of the downsides of physical gold is storing the gold there are solutions to safely house your gold, which can be kept at home in a safe or within a vault at a bank. Another play would be to purchase gold miner stocks like Barrick Gold Corporation. With the increased price of gold, these miners profits would explode, resulting in huge price increases for the extremely undervalued gold miner stocks. The added benefit of high dividends is also a huge plus when investing in miners as you can use this to generate an income while still playing the physical gold “play.”
In short, if you are looking for ways to diversify and already have an interest in assets such as bitcoin as a hedge against the impending inflation then definitely consider visiting a local jeweler and coin dealer and speaking with an expert that can guide you in your first gold purchase.
Gold cannot simply be created digitally or out of thin air and must be extracted from the earth which requires immense amounts of energy, expertise, heavy equipment, cash and most importantly, time, to extract physical ore from the ground to be refined. There is also a limited supply of gold within the earth that can be mined economically/possibly. This is why gold has been the best performing asset in the past 5,000 years as it is the basis of the supply and demand model and has outlived many of the failed currencies of past civilizations. Once demand peaks during inflationary times when people are looking for the exit into safety, price is sure to explode with growth.
When it comes to investing in gold, it is recommended by many wealth advisors to have at a minimum of 5% of your total wealth in physical gold with a max allocation of 20%. While one of the downsides of physical gold is storing the gold there are solutions to safely house your gold, which can be kept at home in a safe or within a vault at a bank. Another play would be to purchase gold miner stocks like Barrick Gold Corporation. With the increased price of gold, these miners profits would explode, resulting in huge price increases for the extremely undervalued gold miner stocks. The added benefit of high dividends is also a huge plus when investing in miners as you can use this to generate an income while still playing the physical gold “play.”
In short, if you are looking for ways to diversify and already have an interest in assets such as bitcoin as a hedge against the impending inflation then definitely consider visiting a local jeweler and coin dealer and speaking with an expert that can guide you in your first gold purchase.