Gold Bullion

We Recommend Gold Bullion as an Asset Diversifier

Throughout the 20th Century, financial experts have recommended investors hold a balanced portfolio of financial assets including stocks, bonds, mutual funds, real estate, and hard assets including gold, bullion, gold bullion, silver bullion, platinum bullion and rare coins. Most portfolios today are invested far too heavily in stocks and mutual funds typically containing no gold bullion at all.

Adding gold bullion to a portfolio introduces an entirely different asset—a tangible or real asset—thus increasing the portfolio’s degree of diversification. The purpose of diversification is to protect the total portfolio against fluctuations in the value of the other assets. Gold bullion does exactly that.

Gold Bullion Adds Balance and Diversity
Gold's ability to serve as a diversifier is due to its low-to-negative correlation with stocks and bonds. Economic forces which determine the price of gold bullion are different from, and in many cases opposed to, the forces which determine the prices of most financial assets like stocks. The price of a stock depends on the earnings and growth potential of the company it represents. Likewise, the price of a bond depends on its safety, its yield, and the yields of competing fixed income investments.

The price of gold bullion, on the other hand, depends on different factors: The supply and demand for gold, inflation, the status of the U.S. dollar, and interest rates. While the effects of these factors are somewhat complex, the important point to remember is that they cause the price of gold to move independently of the prices of other assets in a portfolio.

The chart at right clearly shows gold's negative correlation to other asset classes. This is exactly why gold bullion can lower portfolio volatility and risk.

Move to Gold Bullion Now
We feel that the volatility in U.S. stocks will continue and fully expect a sharp decline in the fourth quarter.

If you're worried about your portfolio, then moving 5% to 10% of your life savings into gold bullion can help reduce your stock risks. At the same time that gold bullion offers you insurance against declining paper assets, it also provides a long-term storehouse of value, privacy, security, and outstanding upside profit opportunity.

Gold bullion is available in many forms including physical gold bars, American Eagle gold coins, Canadian Maple Leafs , Pre-1933 U.S. gold coins, British Sovereigns, French Gold Francs, and Swiss Gold Francs. The best way to acquire gold bullion is to talk directly to a Gold Specialist.