All That Glitters

//All That Glitters

Got gold? The radio is teem­ing with ads pro­mot­ing gold as the panacea for our cur­rent eco­nom­ic and stock mar­ket woes, all tout­ing the many ways to prof­itably invest, whether in bul­lion, coins, ETFs or min­ing stocks. So maybe you’re think­ing you should own gold in some form since (accord­ing to what they say) it will always be worth some­thing.

But does gold real­ly have a place in your port­fo­lio? A thor­ough analy­sis should be made to deter­mine if own­ing gold makes sense for you.

First: are you pro­tect­ed from risk? Not mar­ket risk, but acci­dents, law­suits, dis­abil­i­ty and death. These risks can do sub­stan­tial­ly more dam­age over the long run than a mar­ket cor­rec­tion. Sec­ond: do you have enough in liq­uid sav­ings and are you adding to it in a sys­tem­at­ic way? The recent ral­ly in U.S. Trea­suries has proven that the good ol’ green­back is still the cur­ren­cy of choice through­out the world. Cash has the abil­i­ty to solve a lot of eco­nom­ic prob­lems.

If you answered “yes” to the two ques­tions above, then you can begin to con­sid­er your port­fo­lio: Is it in bal­ance? Are you too heav­i­ly weight­ed in equi­ties? And what about the veloc­i­ty of the cash flows cre­at­ed by your invest­ments?

What the ads don’t say is that gold is a sin­gle-use invest­ment with its own risk char­ac­ter­is­tics, not the least of which is volatil­i­ty. No doubt even a small per­cent­age of the pre­cious met­al in your port­fo­lio would have tak­en the edge off of sharp loss­es over the last two years, yet over the long haul–when you account for inflation–gold has had lit­tle lus­ter.

Instead of suc­cumb­ing to the lure of gold invest­ing, con­sid­er con­tact­ing a rep­utable jew­el­er and arrange for a cus­tom piece of gold jew­el­ry for your loved one. Not only will it be an invest­ment in gold that you can actu­al­ly enjoy, you will be doing your part to add to the econ­o­my.

If you still are unsure or would like to dis­cuss it fur­ther, call me today to dis­cuss your finan­cial goals using the proven PS&G Mod­el®, a tool we use at Chap­man Wealth Man­age­ment that is…

Well, you know…

2017-09-01T13:21:19+00:00