News & Opinions About Gold & Silver

December 01, 2023

Reasons to Buy Gold

  • Gold as Alternative to Near-Zero Interest Bonds
  • Protecting Against Stock Volatility
  • Wealth Preservation Generation to Generation
  • Diversification Beyond Ordinary Approaches
  • Growth of Wealth Despite Inflation
  • Privacy Protection from Government Agencies
  • Building a Precious Metals IRA 

Since the onset of the COVID-19 it has never been more important to re-examine our lives, our long-term goals, retirement plans, and exactly what to do with our investment portfolios. In the report, we discuss how to use Gold in the wisest ways.

Alternative to Near-Zero Interest Bonds— Most Bonds generate miniscule returns, even less since the Covid19 pandemic. The Federal Reserve has declared interest rates will continue with rock bottom returns for the foreseeable future.

If you would to like to lose money, keep your savings in banks, CDs or lousy Bonds that pay less than current inflation. We believe net negative interest rates will only get far worse as inflation rises due to massive money creation in response to the pandemic. Gold offers an ideal edge against inflation.

 Protecting against Stock Volatility— The next stock market crash isn’t a matter of if, but when. We could use the 2008 Mortgage Crisis as an example, but today’s high flying tech Stocks remind us more of the Dot Com crash that began in 2000. After years of irrational exuberance in high tech and internet Stocks, the party came to an end abruptly as all Stock bubbles eventually do. 

Dot Com Bubble Nasdaq Crash

From a March 2000 high of 5,048 the NASDAQ index tumbled to 1,139 on October 2002 for a whopping 76.81% wipeout.

The Dow Jones fell 27.38%. The S&P 500, largest companies in America cratered 43.19%.

The dot-com crash destroyed more than $5 trillion in market value. The NASDAQ took 15 years to recover to the highs of year 2000. Please don’t think the Stock Market quickly recovers because many investors lost everything as dot coms when bankrupt or out of business.

As an investor you need to know there are proven approaches to help you avoid losses from which your portfolio cannot recover. 

Historically, Gold and Silver serve as hedges (insurance) to protect you from crashes and extreme Stock volatility. A core holding of 5% to 10% in precious metals can provide stability from Stock volatility.

Wealth Preservation Generation to Generation— Depending on who has control of the White House and Congress, the so-called “death tax” could change at any time. The federal estate tax is a tax on property (cash, real estate, stock, or other assets) transferred from deceased persons to their heirs.  Only the wealthiest estates pay the tax.

Acquiring Gold that you hold privately, in your possession, is an ideal way to hand down wealth from generation to generation providing you with flexibility and safety. (Always keep up with and obey all IRS regulations.)

Diversification is a Tricky Business— One of the most often ? I’ve heard over the decades has been “I’m not worried about a Stock Market crash, my broker has me in a diversified portfolio of stocks.” The heartbreaker we’ve seen in the 1987 Crash, Dot Com Crash of early 2000s and the 1987 Market Meltdown is that In a full scale crash just about everything falls rapidly across the board.

It’s a far worse risk these days because so many Investors were told to just buy Stock Index ETFs. They called this diversification. Indeed, you may own a variety of Stocks in many different business but are holding only Stocks and thinking you’re diversified could be a catastrophic mistake. 

In today’s electronic trading, down-swings of 10% can occur in minutes. Declines of 20% or more can happen overnight when you can’t trade on U.S. exchanges. The insiders sell, but the average investor is taken to the cleaners.

The price of Gold likewise can be subject to volatility. Once the smoke clears, we’ve found Gold not only recovers quickly but has dramatically increased in value in the years prior to and after a Stock Market 

Gold rises in value after a financial crisis as investors rush into precious metals in a lack of confidence and an alternative to Stocks and Bonds.

Gold for Growth—Sitting quietly in vaults around the world, Gold has increased in value xx% over the last xx months. It may be surprising to you just how profitable Gold can be during a bull market.

2 Year Gold Gains

(Like all investments, Gold and Stocks can go up and down in value over time. Past performance is no guarantee of future value.)

Privacy Protection— Precious metals are totally private. Name any other asset you own that you don’t sign legal documents giving others your social security number. That number identifies you so your profits are automatically reported to the IRS. Name another asset where a computer is NOT responsible for tracking what you own and when you sell.

In this day and age of computer hackers, government spying, and white collar crime, it’s nice to know that you can buy and hold Gold in complete privacy. No one will mail a monthly statement. No one can suck your Gold from your account by electronic transfer or identity theft.

Of course, it is your responsibility to safely store your Gold. We continue to use secure, insured, bank safety deposit boxes and recommend that approach. 

 Building a Precious Metals IRA— Recent changes now allow you to hold precious metals in your IRA.

We have just scratched the surface as to the benefits of maintaining a core holding of private, non-reportable, portable, physical Gold. No doubt, you have questions about the process and unique advantages of acquiring Gold today. We highly recommend you reach out to Austin Rare Coins & Bullion for how to buy Gold. It’s simple and easy.



Speak to an Austin Advisor

Roxanne Byrd


Speak to an Austin Advisor
Roxanne Byrd