Guide to Investing in Gold (part 2) | The Gold Standard 2235

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We continue discussing how to invest in gold for financial protection. There is widespread concern amongst retirees and soon-to-retire investors about the increasing volatility in the stock market. The reason is easy to understand. Retirees withdraw money to live on during retirement. They don’t have the time to wait for a market recovery.

Owning physical gold has proven to be the most reliable investment when all other options are questionable. The current situation is a textbook example of when to diversify wealth holdings by owning physical gold and other precious metals. Soaring inflation and rising interest rates have made it a rough year for the stock market.

Investment strategies must always align with goals, risk tolerance, and time horizon. Ensuring your portfolio has diverse assets helps you weather financial storms, an assortment of volatilities, and unpredictable geo-political environments. Ken Russo explains the importance of planning for the unexpected by making a lateral move into owning physical gold.

Now is not the time to be timid. The worse thing to do is nothing. Ken talks about taking a portion of your 401(k), an existing IRA, a 453, a 457 plan, and a TSP and moving it sideways into a Gold IRA. This strategy avoids huge market losses and devaluation of the dollar, which is right around the corner.

The day-to-day roller-coaster ride of the spot price of gold can distract from the fact that it is the US dollar, not gold, under threat of devaluation. The dollar price of gold will be irrelevant once confidence in the dollar evaporates. Then it will likely be affordable.

A bond is a loan from an investor to a borrower who uses the money to fund its operations. The investor receives interest on the investment. The US issues bonds from the Treasury, also known as T-bonds. When investors buy a T-bond, they’re lending money to the government. In return, the government pays interest twice a year for the bond’s life. Some bonds are 20 or 30 years.

Interest rates are going up, and that’s a bad sign for the future of bonds. Investors holding bonds until they mature are guaranteed not to lose their initial investment. Government bonds have a reputation for being risk-free investments. But it’s the same guarantee we’re given on fiat currency, backed by the full faith and credit of the US Government.

If interest rates keep rising, purchasing bonds begin losing their attraction because the fixed interest rate is likely to underperform the market.

There is a physical gold market and a paper gold market. Paper contracts like COMEX futures, Exchange Traded Funded, or ETFs, Gold swaps, Gold Leasings, and unallocated gold form the paper market. As Ken reminds us often, “if you can’t hold it, you don’t own it.”

The paper market is much larger than the physical gold market. The paper gold market can be a hundred times larger. People who own paper gold don’t own anything but a piece of paper. That’s the way you should look at it. Few of them will get their hands on physical gold when panic strikes.

The quantity of gold being stored dictates how it should be stored. Keeping a half dozen one-ounce gold bullion coins in a drawer is one thing, but you wouldn’t want to hold $100 million in one-kilo gold bars at home. You should store large amounts of gold with a third-party custodian. The other option is to install a home vault protected by multiple security measures.

News of Queen Elizabeth’s passing has spread quickly across the globe. Tributes have been spilling in from the international community. She devoted her entire life to serving her country. To honor this moment in history, Ken shares one of the first gold coins to be used in the civilized world, the British Gold Sovereign. The Gold British Sovereign has known the world over as the iconic coin representing the power and majesty of the United Kingdom. More than 500 years since its inception, the “chief coin of the world” still shares a close relationship with the crown.

The legacy of the Gold British Sovereign dates back to 1604. From the beginning, the coin was known for displaying the sovereign leader of the British Empire. Now, the Gold British Sovereign will say King Charles, the Third. After him, the coin will show Prince William, Prince of Wales, since he’s the next in line to be king.

Since 1979, the Royal Mint has issued Gold Sovereign as a bullion coin, complete with proof versions, each with a face value of one pound Sterling. The obverse features a profile portrait of Queen Elizabeth. Her Majesty has graced the Gold Sovereign since 1952. The latest mintage features the fifth depiction of the Queen, each one reflecting her corresponding age.

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