The Wealthy Are Buying Physical Gold By the Ton – Why Aren’t You?

One of the reasons for gold’s push to all-time higher prices today, could be because of a story that came out saying that the wealthy of the world are making moves to protect their portfolios by buying more physical gold. The question is, why haven’t you?

In a Reuters story coming out of Switzerland, fears about the return of a double dip recession have fueled the appetite for the precious metal;

The world’s wealthiest people have responded to economic worries by buying gold by the bar — and sometimes by the ton — and by moving assets out of the financial system, bankers catering to the very rich said on Monday.

UBS is recommending top-tier clients hold 7-10 percent of their assets in precious metals like gold, which is on course for its tenth consecutive yearly gain.

What Do the Wealthy Know that Those Not Invested In Gold Don’t?

There are many reasons you haven’t invested in gold and silver, and most are not your fault. One thing the wealthy have that most in America don’t have is a good financial advisor that understands currency risk. Americans are stuck with insurance agents who push annuities, financial advisors who push mutual funds or managed accounts where they get paid a percentage on the assets invested, or someone at the local bank who sells both types of assets.

None of these advisors sell physical gold, and I’ll speculate they don’t even know how to go about acquiring physical gold and silver for one’s portfolio.

The Financial Services Industry Has Let You Down

One of the reasons for this is the superiors at all of these investment outlets look down on gold as a legitimate asset class. This is because the entire industry looks at the U.S. dollar as the “risk free” asset. This is what the Nobel Prize winning “Modern Portfolio Theory” has taught them.

But what they don’t realize, and I have been saying over and over on this site as well as in my book, “Buy Gold and Silver Safely,” is there is risk to the U.S. dollar and anyone invested in U.S. stocks, U.S. corporate bonds, and U.S. government bonds, is subject to that risk.

If the U.S. dollar falls 10% and your U.S. stocks gain 10%, have you gained any wealth? The answer is no, you haven’t. I made this case in October of 2009 in DOW 10,000 In 2009 Is NOT the Same as DOW 10,000 In 1999 – It Buys You 23.8% Less Today.

An investment in gold during those 10 years would have more than made up for the 23.8% loss in purchasing power. But your financial advisor never told you about it.

The Gold Dealer Industry Has Let You Down

Instead, investors were left with trusting the advice of unscrupulous gold dealers whom they heard advertised on radio and TV shows, selling expensive European coins at 30% to 90% premiums. These gold dealers are ripping investors off but they don’t know any better. Heck, their financial advisors don’t know, so how are they expected to know?

Some financial advisors are now putting investors into gold via the various Exchange Traded Funds (ETFs) around like GLD. These investments are like a proxy to gold. They are not ownership of real gold because you can’t take delivery of the gold. If you can’t take delivery, do you actually own it? No, you are simply Trading Paper Gold and Silver Versus Owning Physical Gold and Silver.

Why I Wrote “Buy Gold and Silver Safely” and Started My Own Gold and Silver Bullion Sales Company

I was a financial advisor for over 20 years. I saw flaws in the advice that was given by financial advisors. I also saw the flaws in the gold dealer industry having worked for one of the largest gold dealers in the United States.

I set out to expose these flaws and they are there for all to read in my book “Buy Gold and Silver Safely.” This is a good place to start in educating yourself how gold and silver fit into a properly diversified portfolio.

Once educated, I wanted to give those who understood investing in gold and silver bullion the opportunity to buy at the lowest prices in the industry. I wanted to be the Walmart to the gold and silver dealer industry and have done so by offering gold and silver bullion at just 1% above my costs.

But you won’t see my advertisements on radio or TV. This is because I don’t sell the rare or semi-numismatic European coins with a mark-up of 30% or more like almost every other of the over 5,000 gold dealers do in America.

I don’t have Glenn Beck or Mark Levin touting my company. I also don’t have the overhead that comes with running such a company. This allows me to offer the lowest prices in the country.

The U.S. Mint dictates that gold dealers cannot sell gold and silver bullion below cost. Of course gold dealers, if they could, would do so because once someone calls in, they bait and switch them to buy collectible coins rather than bullion coins using fear tactics such as the government will confiscate your gold. I expose these fear tactics in Gold Confiscation Nonsense; How Some Gold Dealers Rip You Off.

If you don’t know anything about investing in gold, start with reading my book “Buy Gold and Silver Safely.” If you are ready to make a purchase or add to your current portfolio of gold and silver, as a hedge against the U.S. dollar decline, call us today at 888-604-6534. When it comes to buying bullion gold and silver, why pay more?

About Doug Eberhardt

Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534