The Six Keys to Successful Gold And Silver Ownership
The comments below are an edited and abridged synopsis of an article by Michael Kosares
Precious metals investing comes down to who, what, when, where, why and how, and Kosares discusses each.
Who invests in gold? Central banks, billionaires and private individuals.
What is gold’s role in the investment portfolio? Kosares includes an excerpt from his book, The ABCs of Gold Investing: How to Protect and Build Your Wealth with Gold. Though investors use gold for varying purposes in the investment portfolio, they are all secondary to its roles as the final means of payment and an enduring store of value under even the most adverse economic conditions.
When is the best time to invest in gold? Panics, manias, crashes and collapses: Whether brought on by popular delusion, unscrupulous market operators, misguided governments and/or central banks, or some random, unforeseen shock, black swan events are part of the human experience. They are just as permanent a fixture in our history as wars, pandemics and natural disasters. In the end, gold is not an investment at all, but a form of wealth insurance.
Where to invest in gold? This is a critical step in the process of becoming a successful gold and silver owner. A wrong step can be detrimental, if not devastating.
Why invest in gold? A series of charts tells the tale: monetary eras 1915 to 2020; gold’s average annual price since 1971; gold’s real rate of return since 1970; gold and the US federal debt; gold and the US dollar index (1970—2019); gold and the dollar index (2017 to present); gold and the purchasing power of the US dollar; gold annual returns.
How to invest in gold? There are many different product choices. Sifting through them can be confusing and overwhelming. However, gold investing is quite straightforward once you know how to approach it. Kosares lists five primary genres of precious metals ownership. Whether you own one or a mixture, the choices you make should reflect the goals you are seeking to accomplish.