How to diversify your precious metals portfolio with the United States Gold Bureau.
At the U.S. Gold Bureau, we recommend that our clients not only diversify into precious metals, but also within precious metals, to make their portfolios as balanced as possible. With traditional investments, this might mean splitting your assets between stocks and bonds. With precious metals, the balance is between gold, silver, and other metals – and by metal types, such as bullion and investment grade coins. So what’s the difference? Why does it matter?
Bullion can be found as bars, government-minted coins, and privately minted coins, called “rounds.” Regardless of the form factor, they are all valued by their weight and metal content.
The value of bullion items floats up and down every minute with the market price of the gold, silver or other metal they contain. This is commonly referred to as the “spot price” – and it’s also how the market works for traditional commodities -- like crude oil, wheat, and pork bellies, for example.
On the other hand, Investment Grade Coins, which are the best specimens of certified coins by class, have a value that is driven more purely by supply and demand, much like prime real estate, fine art, or other non-reproducible tangible assets.
Since the price of Investment Grade Coins is not driven by the “spot price” of the metal, ownership of these coins, as part of a balanced portfolio, can help to offset some of the volatility of the commodity and equities markets.
The market value of Investment Grade Coins is also not subject to manipulation by the banking system, the Fed, government oversight, or other political forces. This is a unique factor that can make them appealing to investors looking for an alternative to traditionally regulated assets of the classical financial industry.
The most important thing to remember about bullion and Investment Grade Coins is that their performance does not correlate to the performance of stocks and bonds, meaning they do not necessarily go up and down at the same time. That’s why an investment portfolio that contains a balance of both is considered to be better diversified and less volatile as a long-term investment.
So what mix of bullion and Investment Grade Coins is right for you? It all depends on your individual tolerance for risk, your time horizon, and your liquidity requirements. Owning precious metals as part of your overall investment portfolio is not without risks. All investments, including precious metals, can go up and down in value. An Account Executive from the U.S. Gold Bureau will explain your options and help to customize a portfolio that best meets your goals and objectives.
We look forward to working with you and putting you on a path to a more secure and more prosperous future.
For a free consultation, call (800) 775-3504.
The information presented in these materials is based on our opinions and experience in the precious metals markets. All investments involve risk, and coins, bullion metals and currency are no exception. USGB, LLC, representatives are not licensed investment advisors. Consult with an independent financial advisor prior to making a decision regarding the purchase or sale of any investment security. Purchases from USGB, LLC, are subject to our Terms & Conditions of Sale, which are available online at invest.usgoldbureau.com/faq. All conversations and communications between you and the Company may be recorded.