At Augusta Precious Metals, we sell precious metals. But that’s just part of our overall mission to educate and empower Americans. We want to be a trusted source of information to help people obtain peace of mind about their retirement savings. Helping savers understand diversification using physical gold and silver is one example of how we empower by educating.
“Diversification” is a term that’s thrown around a lot in the context of savings. Unfortunately, it’s frequently misunderstood. When two assets in the same portfolio are fundamentally uncorrelated with one another, the result is diversification. What does “fundamentally uncorrelated” mean? Uncorrelated assets are characterized by the tendency NOT to move in the same direction at the same time by the same amount. That kind of potential non-correlation may help to diversify your savings.
Let’s say there’s a period of great volatility and the entire contents of your retirement savings sinks at the same rate and by the same amount. It’s likely you own no assets that are fundamentally uncorrelated with one another. You also can probably conclude your savings was not sufficiently diversified to weather the volatility.
Unfortunately, many retirement account owners believe they are effectively diversified when they’re not. Popular asset classes offer a universe of different options to retirement savers. People often select a variety of those options in the belief they will be diversified. But as long as the options they choose represent the same asset class, then effective diversification is less likely.
One of gold’s advantages is that it’s an alternative asset often providing statistically low correlation with other asset classes. Over time, gold has shown a tendency to rise in value even during economic volatility.
If you’re like many Americans looking down the road toward retirement, you may be worried about long-term concerns you have about your savings, including economic stressors that devalue the dollars you’ve saved. Isn’t it good to know there’s something you can do, such as buying physical gold and silver, which may help you diversify your retirement savings?
If you would like to know more about how gold and silver could help diversify your savings, call Augusta at 800-700-1008.