When was the last time your investment advisor recommended you buy physical gold in the form of gold bullion coins or bars? I’m pretty sure he or she never has.
How come?
The quick and simple answer is that your investment advisor won’t make a penny on the transaction. They won’t get a commission. Nor will they be able to charge you any kind of management fee, year after year.
When you buy gold coins or gold bars you are essentially removing your money from the system. And the system doesn’t like that one little bit.
This is why investment professionals typically refer to gold as an “alternative” investment.
This is also why they will choose their statistics carefully, and give you reasons not to buy gold. For example, in one article I read recently, a Certified Financial Planner wrote that between 1979 and 2000 gold lost about half of its value.
That sounds pretty bad. But he was careful to account for inflation, so the numbers would look their worst.
He also chose his dates carefully, didn’t he? He made 2000 his end date so he wouldn’t have to factor in the huge increase in gold prices between 2000 and 2011.
In fact, between 2000 and today the price of gold has increased by over 500%.
When you think about buying physical gold bullion, you have to be very careful when listening to professionals. Think carefully about WHY they discourage you from buying gold. Consider their motivation.
The bottom line is that investment advisors don’t want you to buy gold simply because it is not to their advantage. They won’t make a penny when you buy physical gold, and would much rather you invested – through them, of course – in stocks and bonds.
Further reading…
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