Diversify Your Portfolio

Gold and Silver

Diversify Your Portfolio - Gold and Silver

Gold has been used as money and a store of value for over 6,000 years. Now, gold is also viewed as wealth insurance that protects portfolios. It is the most liquid monetary asset available and is acknowledged and accepted throughout the world since it can easily be stored, hidden or transported. For these reasons, our Founder, Chris Sumner believes owning physical gold represents financial freedom, privacy and safety.

As there are numerous reasons to buy gold, silver may have even more upside potential. Silver, like gold, has been used as money for centuries. But unlike gold, silver has more industrial uses, resulting in quicker depletion of silver supply. Today, an enormous shortfall is developing in silver. Available supplies of silver have been shrinking steadily over the past decade as many of the silver mines closed due to depressed prices; meanwhile, global demand has surged as low prices make silver more attractive to manufacturers and investors.

For decades, top Wall Street brokers have talked about the need to diversify your portfolio – the “don’t put all of your eggs in the same basket” mentality that has now become common sense. But in practice, much of Wall Street misses one key element in this strategy – physical gold and silver coins.

When Will America Wake Up

As the debt crisis in Greece, Ireland, Italy, Spain and most of Europe accelerates, the price of silver and gold will most likely be driven up. Investors all over the world are looking for a safe haven to park their assets. Do you feel comfortable on the stock roller coaster?

How about buying Certificates of Deposit (CDs)? At returns less than 1%, a CD is almost worse than sticking your money under your mattress! We view CDs as “going broke safely.” Using the official government statistics, you're looking at 3% to 6% inflation on your money, which is only giving you a return of 1%. That means even with the conservative inflation numbers, you will go broke by playing it safe. Moreover, according to John Williams of Shadow Stats, inflation today is actually at 11% and will be at 14% by year end. That would mean none of your investments will keep up with inflation. One of the only ways to keep up with inflation is by owning physical silver and gold. Silver has had a spectacular run, and with all of the global uncertainty, the best is probably yet to come.

As referenced before, our founder Chris Sumner, believes diversification is key to a healthy portfolio, and silver is one of the most under-used in America, yet simultaneously most effective ways to do that. A proper position in silver dollars gives you the peace of mind that your portfolio is insured against uncertain times. When America “wakes up,” the supply of silver and gold coins could become scarce and expensive, which is already the direction it’s heading. There has never been a better time than today to buy physical silver and gold coins for protection, privacy and to maintain buying power.

Talk to an RS Financial Group Advisor Today!