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Financial advisors are famous for not introducing physical precious metals as an investment option for their clients – even though gold and silver enjoy a time-honored record as stores of value and safe-haven assets, and in spite of the fact that gold’s long-term record of capital appreciation over the last half-century is actually superior to that of the stock market.
Why would your financial advisor not inform you of the benefits of gold and silver? After all, isn’t it their business to give you advice that helps you achieve the best possible results?
Unfortunately, it doesn’t work that way. Think about the way financial advisors are compensated. They generally are paid with fees and/or commissions earned through the sale and management of securities, such as stocks, mutual funds and ETFs. Physical precious metals aren’t securities, so there’s no way for advisors to earn money from a precious metals sale.
Also, the principal investment environment in which a financial advisor operates is the stock market. Licensing requirements for registered financial advisors revolve around knowledge of equities and the equities markets. The investment perspective of advisors – their worldview – is largely shaped by this single-minded focus on equities.
For these reasons, financial advisors tend not to suggest alternative assets such as physical precious metals, even when the economic environment might make physical gold or silver a very prudent recommendation. Instead, when volatility strikes the markets, advisors are known to tell clients to “sit tight and ride it out” or perhaps liquidate their holdings and move to cash – earning practically nothing – and then hope they pick the right time to get back into the market.
Unfortunately, even though physical precious metals can make sense both to help offset expected market turmoil and as a core portfolio asset for the long term, the inherent bias of advisors means physical gold and silver likely will not be presented by them as an option. It is up to you to learn about precious metals and the ways they might help you protect your portfolio.
To learn more, browse the pages of this website or call 800-700-1008 and speak with one of Augusta’s knowledgeable gold and silver specialists.