own gold

Why the Wealthy Own Gold

Today many of the world’s wealthy class own gold. What do they know that others don’t?

It was billionaire tycoon JP Morgan who stated, “Gold is money; everything else is credit.”

Most wealthy people don’t view physical gold as an investment, but as wealth preservation. They realize gold outperforms cash and other riskier assets when viewed from the perspective of centuries, not just years or decades. In addition, their goal is to be prepared in the event of an economic or political collapse.

Below are a list and comments of wealthy investors and experts who believe physical gold should be part of a diversified portfolio.

 

Donald Trump in 2011 accepted three 32-ounce gold bars as a security deposit from Apmex for a Wall Street real estate rental. Donald stated, “I would rather be paid in gold than U.S. dollars because we all know where the U.S. dollar is heading.”

 

own gold Alan GreenspanIn an article titled “Golden Rule: Why Bejing Is Buying”, Alan Greenspan wrote, “If the dollar or any other fiat currency were universally acceptable at all times, central banks would see no need to hold any gold. Of the 30 advanced countries that report to the International Monetary Fund, only four hold no gold as part of their reserve balances.”

 

 own gold - robert kiyosakiIn an interview with Kitco.com, Robert Kiyosaki was asked where he would invest $10,000 in 2014. Here’s a portion of his reponse:

“Learn about different investment vehicles and asset classes and become your own best advisor in terms of the best place or places to put your money…and once you’ve gained the knowledge (and some experience) you can make confident, informed choices about what’s best for you. That said, and looking ahead to 2014, this is how I would allocate my investment dollars: 5% equities; 40% real estate; 25% precious metals; 20% oil; 10% cash.

With gold and silver prices heading down, I would be acquiring a larger position in physical gold and silver. When the stock market goes down, panic will set in, and gold and silver are likely to hit new highs.

I am very concerned about the millions of baby boomers who are counting on the stock market to deliver them a safe, sound, long retirement. I am afraid the baby boomers who are counting on the stock market are in trouble. When the big bad wolf blows on their portfolios made of paper, chances are the wolf will have a feast. I would rather be building a house of ‘bricks—gold, silver, oil, food, and businesses…tangible assets—not paper.’”

 

jim cramer - own goldJim Cramer, the “Mad Money” host recommends gold because it tends to go up when everything else is going down. It is the investors’ insurance against geopolitical events, uncertainty and inflation.

He said, “I think that 10 percent is the upper limit because I consider gold as an insurance policy and no worthwhile insurance policy should be 20 percent of the money you have invested.”

 

james rickards - own goldJames Rickards is a best selling author of Currency Wars and The Death of Money, portfolio manager at West Shore Group, and and adviser on international economics and financial threats to the Department of Defense and the U.S. intelligence community.

In his book, The Death of Money, he listed five investments that are most likely to remain robust in the face of extreme inflation, extreme deflation, or a condition of social disorder. One of the investments listed was owning gold. He recommends from 10 – 20% in physical gold.  He says, “Secure logistics, easily  accessed by the investor, should be considered, but bank storage should be avoided, because gold stored in banks will not be accessible when most needed…A useful way to think about gold’s insurance function is that a 500% return on 20% of a portfolio provides 100% portfolio hedge.”

 

own gold - mike maloneyMike Maloney is the producer and host of Hidden Secrets of Money, an acclaimed investment education series. Take the time to watch all of them, especially Hidden Secrets of Money, Episode 4 which gives you an eye-opening and easy to understand explanation of how the financial system works.

On Mike’s website he gives you a list of reasons why gold ownership is on the rise. Here are some of them:

  • Gold is universal money, a tangible store of value and wealth protection.
  • Physical gold cannot go bankrupt or broke.  Gold bullion will never default on promises or obligations.
  • Gold is not created by governments nor is its value dependent upon governments.  All of today’s governments issue paper fiat currencies ( dollars, euros, yen, pounds, yuan, rupees, pesos, etc. ).  Fiat currencies have no tangible value and are backed only by government decree ( namely legal tender laws ). Historically, governments always create and issue too much fiat currency.  Over the longterm, paper fiat currencies are worth less and less, until they are ultimately worthless.  The average lifespan of a fiat currency is 27 years.
  • Individuals can buy and own gold (physical gold) privately and anonymously.
  • Gold bullion investments are extremely portable, liquid, and easy to store in one’s home.

 

own gold - john hathawayJohn Hathaway, senior portfolio manager of Tocqueville Asset Management, manages all gold equity products and strategies at Tocqueville Asset Management. James Rickards mentions that he follows John’s investment advice.

In August 2014, John said, “I think the rationale for owning gold is as strong as ever. Radical monetary policy probably won’t end well and any thinking person should be concerned about it. That’s why we believe you need to have some exposure to gold. Markets today are over-exuberant: pumped up equity valuations, nonexistent spreads between quality and junk, record issuance of low-grade paper, all of these things are typically indicative of an endgame in financial assets. Gold is not at that party. It’s conspicuous by its absence. In our view, it’s pretty hard to say that anything represents value these days except precious metals. Gold is wealth insurance.”

When asked in August 2012 what percentage of precious metals he would recommend in a diversified portfolio, John stated, “In today’s world, I think 5% to 10%. By physical, I do not mean an exchange-traded fund (ETF) or commodity contracts, which are really paper gold, but actual physical gold that you can touch—gold that is outside of the banking system, that you know where it is stored and what your bar numbers are.”

 

matt rettick - own goldI saved Matt Rettick for last. Not only is Matt a financial advisor, founder and CEO of three financial services companies, an author and host of his online financial news show, but he has recently become an affiliate with Karatbars International.

In a recent interview Matt stated,I’ve been looking for 25 years for a good source for my clients to buy gold and I never found it until recently… With gold, you want to have some small, usable quantities if anything goes awry with our economy. And then hang on to that gold because it’s going to keep you ahead of inflation.

As a financial advisor, and I have securities licenses, insurance licenses, I have 5 financial services companies that are still in existence today and doing well. I have to be really cautious with anything I personally get involved in or recommend or promote.

I started August 1, 2014 and took 30 days to investigate [Karatbars International] myself doing some background checks,  investigations, online searches.  I even had my compliance officer… do some due diligence. But after 30 days my compliance officer and myself came to the same conclusion –  this is a very strong company.”

 

With Karatbars, the “average Joe” can slowly and privately own gold one gram at a time as a hedge against inflation and as a “wealth insurance”.

When we start acquiring gold in small, usable quantities as part of a savings plan, our mindset moves toward a wealthy mindset. We look at gold and consider its value, not its cost.

Let me show you how to set up your gold savings plan.

good money

 

 

 

757-310-9175
jameslawson.ws@gmail.com

1 Comment

  • Fonda Waddell

    Reply Reply January 21, 2016

    Great blog, It’s all about educating yourself. Just Curious if USA is still representing 71% of the reserves, holding over 8,100 tonnes of gold?

    #gotgold?

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