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Investment in Gold VS Investment in Stocks

Gold Price Dynamics

Gold price in U.S. dollars reached its highest level on August 31, 2011, when the bar price hit $1,828 per troy ounce (31.1 g). There then followed a period of decline to $1,060 per ounce until December 2015. Since then, the gold price has resumed its rise, hitting in 2020 an all-time high in early August (above $ 2000 per troy ounce) and exceeding $1,870 per ounce in November. Experts forecast its further price growth, estimating that in December 2021 it will be at least $2,500 or even $3,000. 

This year gold has been the best performing asset. Our InternationalWealth experts predicted this trend several months ago, claiming that 2020 is the ideal time to add physical gold to investment portfolios.

Nevertheless, very few financial advisors will recommend you to invest in gold today. And the reason for that has nothing to do with the gold spot price.

Investment in Gold

Geopolitical Risks

Geopolitical risks, fear, and uncertainty in the market, which have always fueled the growth of gold prices, may have slightly decreased temporarily in summer 2020 but are back today.

Though Asia is finding its way out of the Covid-19 induced crisis, the rest of the world shows widespread spikes in virus cases, particularly in the U.S.A. and Europe. Comprehensive lockdown measures are being discussed by policymakers nationally and even internationally. Disruption now seems to be the status quo all over the world.

The U.S. economy is far from being on a swift economic and political recovery track. Europe has still not fully overcome the debt crisis. Brexit talks have been suspended again. Economic and political instability is growing in many parts of the world. Emerging markets have also been under pressure due to declining interest from investors. This has been felt even by Asian countries with their stable growth prospects and debt financing. As of Q1 2020, global debt set a record of $258 trillion or 331% of world GDP.

Tensions between the U.S. and North Korea have subsided but not disappeared. Trade disputes continue between the U.S. and China, as well as between the U.S. and the rest of the world, which strongly impacts the stock market.

Because of the global pandemic, economic and social shutdown, mass unemployment, enduring protest movements,  and the US presidential elections, the global economy continues to experience widespread disruption, and geopolitical tensions impact supply chains and trade networks. All this suggests the risks of another global crisis.

The above-said explains why many investors are beginning to pay attention again to precious metals and gold in the first place.

Why Wouldn’t Financial Counselors Advise to Invest in Gold?

An average financial advisor is used to doing familiar things. This is human nature. Counselors tend to keep to the safe beaten path, especially if some threat is looming. Financial advisors are used to dealing with stocks, bonds, mutual funds, etc. This is their comfort zone. Investment in gold or any other less conventional assets means to them a path to uncharted waters. It requires a certain amount of courage and independent thinking, which is becoming less and less common today.

Most investors prefer to stick to the established, well-proven strategies instead of looking for greater opportunities and incomes in the future. 

Their financial advisors also recommend mainstream approaches while pretending that they provide unique personal advice. 

Unfortunately, the choice of a popular path taken by everyone else disregards and eliminates the advantage of unique opportunities that are available in today’s marketplace.

Investing in Gold as an Alternative to Investing in Stocks

In the era of monetary and fiscal wastage, negative deposit interest rates, and the so-called “financial engineering”, reasonable investors cannot afford to ignore precious metals and in particular gold as one of the main assets meant for wealth preservation and growth.

Those who are negative towards gold investment, often refer to the fact that it does not bring interest in the short term. 

However, gold help to counter inflation and can preserve its value in the long term perspective. Besides, it is much cheaper to inherit physical gold stored in a specialized storage facility, than many other types of assets.

The modern financial system, which is based on paper and promises, is unlikely to ever earn the respect and trust of investors from around the world that could compare with gold.

What we see today is too much debt, too much regulation, and too much government intervention. Such a tightly regulated system will sooner or later collapse. World history has proven it more than once.

When big empires fall, it is not just the financial markets that are affected. Many other problems arise, ranging from all kinds and forms of financial repression to tax increases, waves of criminal prosecutions, social unrest, and even wars.

When another crisis occurs and the financial pyramid collapses, it will be too late to buy gold.

The biggest wins can be snatched or wasted in times of crisis. Only he who has been alert and preparing to make a scoop will earn a fortune.

Investment in gold is the opportunity to prepare for future shocks and to benefit from them. We recommend this option and offer physical precious metals – gold, silver, platinum, palladium – for safekeeping your fortune and making profits in the long term.

A Word to the Wise 

Please note that we mean investments in physical precious metals, not certificates. This is an offer for those who appreciate real assets, rather than stocks that can easily fall and suddenly lose their entire value.

Specialized well-protected vaults are available in Switzerland, Singapore, and Hong Kong. On placing your gold there, you will be able to arrange a visit and personally check its availability on the premises of storage at any time.

Our experts have advised that this year would be right for long-term investment in physical gold before it grows too high. Judging by the gold value dynamics, their recommendations are worth to be considered. 

You may also consider opening an account for purchasing and storing physical precious metals in Switzerland, Singapore, and Hong Kong.

Our experts can help you learn about the delivery and storage of physical precious metals.

For more information, as well as to set up a precious metals account, you can contact our experts at the address given at the top of this page.

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