How Gold Protective Investment Against the Risk

Gold Market Ilustration

While paper investments and real estate are sensitive to the influences of changing times, gold continues to rise. When all else fails, a precious metals investment may save a portfolio.

The classic Chinese curse “may you live in interesting times” is especially applicable to the current period of American history. There is a lot going on right now, much of it frightening. Bill Gates, Warren Buffet, and billionaire speculator George Soros, to mention a few, are sinking their dollars, deutschmarks, and yen into gold, silver, and palladium in response to the events of our perilous age. Big financial organizations, such as Russia’s and China’s central banks, are also jumping on the metals bandwagon, driving the price of these valuable commodities much higher.

This is causing a gold rush not seen since the 1970s Misery Index years. Many financial experts now see gold, in particular, as an island of stability in a paper-based investment market that is becoming increasingly volatile, a trend that bodes well for ordinary people who wish to protect their retirement accounts with a precious metals hedge.

“People all over the world are losing faith in politicians and currencies,” says Marc Lubaszka, President/CEO of World Financial, a highly successful precious metals investing organization situated in Studio City, California. “This has resulted in a flight to gold and other precious metals, which have served as a storehouse of value for over 5,000 years.” Investors are withdrawing their funds from paper assets and reinvesting them.

Old Standbys Unreliable

Gold as Investment

Lubaszka explains that investments that were formerly thought to be as stable as stone are rapidly losing ground. One example is real estate. Home ownership, once regarded as a no-brainer by financial experts, is no longer regarded as a hassle-free way to profit. Stratospheric pricing and rising interest rates are putting unsustainable pressure on the present housing bubble, which is expected to burst sooner or later and plunge the overheated real estate market into deep freeze.

“The housing bubble will burst rather than gradually deflate, following the rapid and violent pattern of decline seen in nearly every financial bubble throughout history,” Lubaszka predicts. “Higher interest rates have a negative impact not only on the health of the housing market, but also on other economic segments.” The stock market suffers a setback.

Paper is Obsolete

Gold prices are rising 2023

According to Lubaszka, the US dollar has lost more than 80% of its original worth since the early 1970s, when we switched to a floating currency, a problem exacerbated by the Euro’s introduction in the late 1990s. Unlike US currencies, a component of the Euro is gold-backed, a trait that has helped it outperform the US dollar over time. A result, many international investors have been withdrawing money from US dollars and investing it into gold and oil instead, which explains why the prices of both have continued to rise in recent months.

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“Gold prices are rising right now because the Federal Reserve is printing money at an unprecedented rate.” must keep the real estate market afloat,” says Richard Russell, publisher of Dow Theory Letters, a stock market trends and securities report that has been published since 1946. “This causes inflation, which reduces purchasing power.” All of the world’s central banks are inflating right now, decreasing trust in paper and promoting gold purchases. India and China are also driving up gold prices. The world’s top gold consumer is India, and the Chinese government actively encourages its citizens to buy gold.”

“When gold peaked in the 1970s, interest rates were at an all-time high,” Lubaszka says. “Right now, we’re waiting to see the effects of the last nine interest rate increases, which typically take 6-9 months to have an impact on the economy.”  Now is a good moment to buy gold since rising interest rates put downward pressure on real estate, stocks, and bonds, while commodities like gold tend to rise. When rates fall from a high to a low, the opposite happens. That is the moment to minimize gold holdings and raise the paper portion of a portfolio.”

Purchase Without Getting Burned

Trading Gold as Investament

Michelle Henderson, the proprietor of a talent agency in Los Angeles, California, understands the stakes of investing. As an agent,  I work on a commission basis and must constantly invest in both  people and ideas, ” she explains. Even though I’d had bad luck with stock investments in the past, I knew I’d eventually find something that worked for me.” I invested in a metals portfolio comprised of palladium, silver, and gold and got a 38% profit on the palladium alone. I was able to make an above-average return and significantly improve the overall worth of my assets while remaining focused on producing money and following World Financials advise.” According to Lubaszka, “it’s probably best for the first-time investor to start conservatively by purchasing physical metals rather than gold stocks, which can be very volatile.” According to Clearwater, Fla.-based talk show presenter and gold analyst Tom O’Brien, when metals rise 20%, gold shares rise 50% to 60%. That’s terrific when it happens, but the opposite might also happen. Purchase gold bars or coins and store them in a safe deposit box. If you decide to buy coins from a coin shop, make sure you pay the lowest feasible price and that they have a buy back policy. Fees are unavoidable if you choose to utilize a broker because you are purchasing an actual product.

Brokers are classified into two types. The finest of the breed will answer any inquiries and make the process of buying gold for the first time less stressful. Great brokers are also easily accessible and quick to respond to any new information that may impact the value of the investment. Work with companies that have been in operation for at least five years, preferably ten. Avoid companies who bombard you with telemarketing pitches or use high-pressure sales tactics. Also, avoid paying large commissions. Some brokers charge multiple fees in order to gain more money than they do by investing on behalf of their clients. There are some companies who will not buy back metal. Keep a safe distance from them as well.

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Guarantees Five-star Customer Satisfaction

“Check references and Better Business Bureau ratings”, Lubaszka says. “Do business with a company that is genuinely interested in doing business with you.” World Financial, for example, guarantees five-star customer satisfaction. If a prospect’s queries are not answered or we do not return to their call or email within 24 hours, that person will receive a free one ounce silver American Eagle coin. A financial advisor’s goal is to make the investment process easier for customers and to ensure that they get the most bang for their buck. Good advisers are only adequate, but the finest are priceless.”

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