Anti-Gold Bias: The Big Secret Wall Street Doesn’t Want You to Know
The comments below are an edited and abridged synopsis of an article by Stefan Gleason
Last year was one of the worst on record for a conventional stock and bond portfolio. The major stock and bond market indexes both fell by double digits.
Those who invested in precious metals fared better. They made slight gains, which translated into a massive outperformance versus conventional financial assets.
Unfortunately, conventional financial advice continues to keep most investors 100% allocated to financial assets with zero diversification into hard assets.
This shunning of gold and silver serves the interests of brokers and investment bankers, not clients who stand to benefit from exposure to precious metals. Jeff Christian summed it up like this:
“… if I sell an investor a stock or a bond or an ETF or a note indexed to the stocks, the turn on that is probably somewhere between three quarters and five quarters.”
“So I’m going to see that money come out of that asset and get redeployed, reinvested in another asset and I’m going to get a sales commission.”
“But if I sell that investor physical precious metals, I’m not going to have another commission on that money until he’s dead. Because people tend to buy, especially gold, they tend to buy gold and not sell it.”
“So you have an institutional bias on the part of mainstream sell-side financial corporations against selling precious metals—physical precious metals.”
Gleason discusses Modern Portfolio Theory and its drawbacks; how precious metals complete the investment picture; the financial industry’s bias against bullion; how much you should allocate to precious metals; preparing for tough times with bullion; and diversifying within your bullion holdings.