It’s no secret there are beaucoup self-certified investing experts willing to dole out advice like candy to any willing listeners. Because I work in the precious metals industry, I get to hear many of these brilliant ideas sold to customers from a myriad of sources.
Too often, the well-intentioned (we’ll give them the benefit of the doubt) advisors sell ideas to the unknowing and create a bit of a mess.
The issue of investing is very personal and quite sensitive; with the state of the economy and the likelihood of ever redeeming that precious social security you’ve been paying into for years, most prudent people are seeking alternate ways to prepare for their future retirement. This leads individuals to stocks and commodities- often precious metals. However, if you are new to precious metals, you might be looking for help to get started.
I wanted to find out some of the worst advice given to potential precious metals investors and address the faulty logic used.
Alright. I understand most of us own at least a little tinfoil hat and believe a(nother) gold confiscation is possible; however, to sell bullion at a high premium because it’s “non-confiscatable” is simply a shady dealing practice used by dishonest dealers. In the gold seizure of 1933, collectible and rare coins were exempt from confiscation, but there is no evidence to suggest a dealer can predict what the government would or could seize in an unlikely seizure. Don’t fall prey to this!
Worst Advice #4: “Gold is the only safe haven investment. If you are wise, your portfolio will be filled with precious metals.”
Yes, gold is a safe haven investment. Yes, you should invest in precious metals. However, a wise investor knows diversification is key. Most economists suggest between 5-15% of your portfolio be invested in bullion, with other stocks and commodities included to reduce risk.
Worst Advice #3: “Gold should always be stored in a bank safety deposit box.”
I can almost hear some of you chuckling. I think most of us have at least a little distrust of anything federal. And, I know the Silverbugs‘ motto is “if you don’t hold it, you 
Worst Advice #2: “Buy what you like.”
If you are buying bullion as a hobby, without a true focus on investing, then you can buy what you like. However, if your end goal is investing with profitable returns, you should be seeking low premium bullion from reputable dealers. You could choose the safety of sovereign bullion, backed by a government- this holds a slightly higher premium, but for many, the security of sovereignty is worth it. An alternative is low premium, privately minted bullion- not guaranteed by a government, but oftentimes does offer that aesthetic factor some enjoy and can be reliable if you shop trusted dealers, like Provident Metals.
That’s right, folks; I saved the best for last. This is my favorite piece of terrible advice because it undercuts the value and importance of bullion in your portfolio as a safe haven, portfolio diversification, hedge against inflation, and historically valuable metal. A certain financial guru commented that gold and silver are terrible investments made by doomsday preppers because, in the event of an apocalypse type event, only supplies like food and water will have any value, and those with bullion will starve. I thought that was a bit much. While I can see where he is coming from, there are ample uses for bullion in industry, and time has proven the precious metals will always be valuable to society. For thousands of years, man has found utility for gold and silver, and great value has always been given to the precious metals. While I don’t foresee the end times to arrive next week, I do believe investing in bullion for a financial or apocalyptic crisis is a sign of prudence, not paranoia.
I can’t wait to hear the worst bullion advice you’ve been given! Let me know below!
If you are a “conspiracy theorist” like myself, you might enjoy our phenomenal new series, the Nordic Creatures. Pick up the epic Níðhöggr 1 oz Silver Antique Round, today!
Happy sta
-J
