According to multiple reports, governments and institutional asset managers have been stockpiling gold recently. What do these nations and companies know that you should know? Just this: Precious metals is perhaps the last remaining bastion of real money out there, which makes gold investment a viable option to protect your savings.
When nations and billion-dollar hedge funds build piles of gold as a “just in case,” they’re telling the world gold can save them in the event of economic catastrophe.
In a recent article over at The Gold Telegraph, Tom Lewis writes that a growing number of nations are repatriating their gold stored at the U.S. Federal Reserve. Germany, Belgium, Austria, The Netherlands, Russia, and China are among those nations electing to bring their gold home in the face of both significant global economic trouble and ever-present geopolitical tension.
Turkish President: “Gold is Unlike Anything Else”
Lewis writes that Turkey is another country physically reclaiming and stockpiling gold that already belongs to it. Turkey repatriated 220 tons of gold on April 18th. President Tayip Erdogan wants his gold home to “prioritize” Turkey’s currency. Additionally, Erdogan recently suggested the International Monetary Fund should be paying loans in gold rather than dollars:
“These debts should be in gold. Because at this point the karat of gold is unlike anything else. The world is continually putting us under currency pressure with the dollar. We need to save states and nations from this currency pressure.”
Additionally, a Seeking Alpha article some months back notes sizable global asset managers also have been considerably increasing their stake in gold. Even though predictions for a significantly higher stock market were all the rage at that time, billion-dollar hedge funds such as Chevy Chase Trust Holdings and Stifel Financial Corp. increased their positions in physical gold ETFs. In the case of those two funds, the increases were by 42% and 63%, respectively.
The two hedge funds revealingly opted for physical gold ETFs, not mining stocks or any of the other less-direct forms of precious metals investing financial advisors typically – and reluctantly – suggest when clients raise the subject of silver and gold investment.
Is Physical Silver & Gold Investment a Potential Savior of Your Portfolio?
This current trend of stockpiling gold among many governments and international money managers is a great example of why it’s important to read between the lines and think for yourself. Alternative assets such as gold and silver are rarely brought up by financial advisors despite this demand by governments and fund managers and despite the metals’ demonstrated ability to effectively diversify a portfolio. They ignore the fact that precious metals historically have helped portfolios not only remain stable but continue appreciating during prolonged periods of economic upheaval.
As the Seeking Alpha article goes on to say, “Gold is not on the mind of the average investor, but clearly it is on the minds and in the portfolios of these hedge funds and governments.” And when you notice some of the largest, most prominent public and private entities in the world turning to stockpiling gold for added financial security, the question isn’t why they’re doing so, but why you’re not.
You can learn more about why some of the world’s most economically powerful governments and most prominent asset managers are stockpiling gold at this time by calling Augusta Precious Metals at 855-242-4121. While you’re at it, ask the Augusta team member you speak with how a rollover to a physical silver or gold investment could be a potential difference-maker to help you reach your retirement objectives. Already have an IRA or 401(k) comprised of traditional assets such as stocks, bonds and cash? In today’s economic climate, that may not be enough to ensure you meet long-term financial goals.