The Dow Jones Industrial Average has lost 67% against gold since 1999. The US dollar has lost 85% against gold since 2000. With money printing, debt, and stimulus reaching all-time highs today, wealth preservation is at the forefront. We are frequently asked at Midas Gold Group what are the different ways that an individual can invest in gold?
An investor can buy shares in mining stocks
The stock market has been on an incredible run over the past ten years. Coming out of the last financial crash in 2006–2009, stocks have offered a great opportunity for the last decade. Buying shares in large gold operations like Newmont Mining or more speculative mining companies is one way to have exposure to the gold market. This can be looked at as low cost, convenient, and easy. Easy and convenient doesn’t mean not risky. Mining shares carry market risk, mining risk, geological risk, political risk, management risk, and execution risk. Mining funds can spread out these risks on any one individual company, but the management company behind these funds also needs to be trustworthy and reliable. Most investors who invest in mining stocks have not considered the overall risks in owning gold company shares or funds.
Mining company shares are still part of the banking and financial system.
An investor can invest in gold ETFs
Some investors are attracted to the ease and low-cost transaction fees of owning ETFs. The GLD is the most popular gold-backed ETF (Electronic Traded Fund). This ETF closely tracks the price of gold. An investor can buy shares in their stock account or retirement account. Each ETF is supposedly backed by a certain amount of physical gold. This “paper gold” goes up and down every day as the value of gold fluctuates. Many gold experts suspect that these ETFs are not telling the truth when it comes to actual gold ownership. Much more physical gold would be needed to satisfy every ETF share and thus every share-owner. ETFs are still dependent on your retirement company’s expertise, the electronic grid, your stock account platform, your advisor’s discretion, and the functionality of the overall equity markets. Some investors do not understand all these risks and assume owning a gold ETF is just as good as owning real gold. At Midas Gold Group we frequently hear I can own shares of an ETF at a very low transaction cost in my stock account.
A nest egg should demand more consideration than just a low transaction cost for most investors.
An investor can hold physical gold in their possession
A bar of gold or a gold coin is tangible wealth. Physical gold has been money for 5,000 years. Gold bullion coins, bullion bars, and numismatic coins offer investors the privilege to hold physical wealth in their own hands and individual retirement accounts. Physical gold is not part of the banking system, financial markets, has no third-party risk, and is not leveraged. The most popular gold bullion coins include the Eagle, Buffalo, Maple Leaf, Philharmonic, Kangaroo, Britannia, and Panda. The most popular bullion bars come from well-regarded private mints such as Credit Suisse, the Perth Mint, Valcambi, RMC, PAMP, and the Canadian Mint. Some of the most liquid numismatic coins minted before 1933 include the Saint-Gaudens, Liberty, and Indian. Of course, storing your gold safely and transporting physical gold needs to be considered.
Midas Gold Group is not your financial advisor; we are your gold specialist. The most recent crisis has caused prices to rise on these products and the inventory is tight. We expect these trends to continue and possibly get to be much greater. A greater gold value and a tighter supply as demand continue to increase looks inevitable. At Midas Gold Group we believe if “you don’t hold it, you don’t own it.” The next decade can be marked by great wealth destruction. The financial system built on leverage and debt will not be fixed by issuing more debt and more credit. The fiat currency system started in 1971 is imploding. Individual investors are becoming more aware of the possible destruction ahead due to creating money out of thin air. At Midas Gold Group it is irresponsible and a huge mistake to not take immediate action to protect your family and your assets in such a chaotic time. Call Midas today at 480-360-3000 and 805-601-6000 and see what you can do today to own physical gold. Protect your liquid and retirement account in gold bars and coins. Call a Midas executive today at 480-360-3000 and 805-601-6000 and schedule a brief phone consultation or office meeting today. Don’t let the banks or market take your money. Do something to protect what you’ve worked hard for before the bottom falls out. The World Economic Forum’s (WEF) annual gathering of the rich and the powerful in Davos will focus on a post-pandemic world in January 2021. The theme of the 51st World Economic Forum Annual Meeting is The Great Reset. Interesting choice of words.
