Why Gold Should Be the Foundation of Your Portfolio
Adrian C. Spitters FCSI?, CFP?, CEA? President, Author, Private Wealth Advisor
I Execute Tax-Efficient Investment Portfolio Solutions So That Your Business, Family, And Estate Assets Are De-Risked And Protected Against Financial Risk, Economic Threats, Inflation And Higher Taxes.
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Source Article: Martians Are Wrong About Gold
It Starts with Gold
Gold is the foundation of a well-diversified investment portfolio that includes income-producing private alternative assets like private equity and private real estate. These investments can help fortify and de-risk your portfolio against financial institution risk, economic threats, inflation, and higher taxes. Gold has long been considered a safe haven in times of economic uncertainty. Its stable value makes it a reliable hedge against inflation and market volatility. Gold represents security and confidence, serving as a foundation for wealth preservation. Contact New World Precious Metals to discuss your purchase options.
The Timeless Value of Gold
A Martian gazing down from his red perch — Mr. Warren Buffett once razzed — would marvel that Earthlings dig Gold from the ground… merely to re-entomb it in vaults. That is, the business is senseless. It is pointless. It is juiceless. At first blush, our spaceman is justly puzzled. Why would humans shovel up hunks of metal merely to lock them away, idle? Yet the Martian — and the Nebraskan — jump past a fundamental truth of human nature. Men act with purpose. They do not squander their time, energies, or resources on senseless, pointless, and juiceless pursuits.
The question then arises: Why would men expend time, energy, and resources to haul up Gold… and risk their lives deep in dangerous mines to seize it… if they lacked compelling reasons? Indeed: Why do men — to this day — toil extravagantly to wrest gold metal from stingy earth?
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The Gold Standard of Money
Perhaps men continue plucking up Gold for this reason: Thousands of years of history demonstrate that Gold is worth plucking up. Gold is perhaps the ideal money — if you will forgive the expression — the gold standard of money.
Money must be rare. Rocks cannot be money — for example. Simply consider the quantity of rocks lodged within the skull of a single United States senator. Multiply it by 100 skulls, and you have a near-infinity of rocks. Multiply it by all the skulls in Washington, and you have your infinity. This vast abundance discredits rocks as a form of money.
Nor can sand meet the monetary standard — and for the identical reason. Yet there must be enough money to “go around.” Gold is rare, it is true. Yet its quantity is adequate for its purposes. Gold is likewise durable. Gold mined thousands of years ago lives yet fresh as a sprig, with no wrinkles, no sags. And unlike gems or diamonds, Gold is divisible. It can be fashioned into bars or coins as required.
Money must be a store of value. Gold has maintained its value across centuries and millennia. Hence, it meets money’s strict conditions.
“No Central Banks [Provide] That Kind of Price Stability”
Explains author Edward Griffin in The Creature from Jekyll Island:
"In ancient Rome, the cost of a finely made toga, belt, and pair of sandals was one ounce of Gold. That is almost exactly the same cost today, 2,000 years later, for a hand-crafted suit, belt, and a pair of dress shoes at Barneys in New York."
There are no central banks or other human institutions that could even come close to providing that kind of price stability. Can paper money approach this flatlining stability? Consider the dollar of the United States…
This debased currency has shed some 98% of its value since the Federal Reserve’s 1913 demon birth. The greatest plummets came after 1971 — when Old Nixon scissored the dollar’s last chain link to Gold. One 2024 dollar purchase is under 15% of the 1971 dollar. That is, the 1971 dollar did the duty of seven-plus 2024 dollars. Is this monetary stability?
If this is monetary stability, then schizophrenia is psychiatric stability.
Sound Money Is Honest Money
We stand in defence of Gold because it is sound money. Sound money is honest money. And sound money equals sound government. It chains the government down in impossible fetters. Explains the titanic “Austrian” economist Ludwig von Mises:
"It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically, it belongs in the same class as political constitutions and bills of rights. [The] postulate of sound money was first brought up as a response to the princely practice of debasing the coinage."
Label what you will the money of the United States. You cannot label it “sound.” And we trust its issuer no more than we would trust a dog with our dinner. The thing is less money than an instrument of credit. That is an instrument of debt.
Before the 20th century, debt was a cultural taboo — a scarlet “D” emblazoned upon the bosom. Credit for households was virtually unknown. And only the poorest households resorted to debt-financed consumption. But along came the 20th century with its wars… its world-improvers… and its cranks. Gold was in their way.
“Gold Has the Public Spirit of a Cat”
Gold proceeds at its own leisurely pace. The greater good is beyond its care. The milk of human kindness? You will not find it in Gold. Gold — instead — embodies the civic spirit of a cat. Gold turns from the roar of cannons. “You go over there,” Gold tells its fiat counterpart. “I’ll stay here.”
As wrote our co-founders Bill Bonner and Addison Wiggin in Empire of Debt:
"The trouble with Gold is that it turns its back on world improvers, empire builders, and do-gooders. The nice thing about Gold is that it is so unresponsive. It neither laughs nor applauds. That is precisely why Gold could not endure…"
Debt-Based Money Is Ideal for Public Service
Only a debt-backed system of paper money could finance the great wars, the social improvements, and the fevered dreams of the 20th century. This money is ideal for public service. It is civic-minded. It has a heart. It follows orders. Whatever war, whatever boondoggle, whatever swindle it is ordered to stand behind… it will stand behind. Fiat money willingly sacrifices its value for the greater good. Gold, meantime, is jealous of its value. It guards its virtue.
Thus, we speak our piece for Gold. Multiple millennia of history attest to its enduring value. Those same millennia attest to the unenduring value of paper money. They have all ended in history’s hellbox. As the United States dollar one day will…
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Why Gold Should Be the Foundation of Your Portfolio
Gold's stability and reliability make it a strong foundation for a well-diversified portfolio. Its value remains steady even in times of economic turbulence, offering protection against inflation and financial uncertainty. Given the potential vulnerabilities in the financial system, as highlighted by the practices surrounding securities entitlements, having a secure and tangible asset like Gold is paramount.
Combining Gold with investments in private real estate, such as multifamily rental apartments, can further enhance portfolio diversification. This approach safeguards wealth and taps into the growing demand for rental properties driven by immigration and demographic changes. By investing in both Gold and private real estate, investors can build a robust, resilient portfolio that mitigates risks associated with financial intermediaries and systemic financial collapse.
Complimentary Portfolio Evaluation
As a valued reader, I am offering a complimentary portfolio evaluation to discuss how investing in alternative assets such as private equity, private real estate, precious metals, commodities, government-sanctioned flow-through tax-efficient structures, and tax-minimizing corporate insurance solutions can help to fortify and de-risk your portfolio against financial institution risk, economic threats, inflation, and higher taxes.
To book your consultation, email me at [email protected] or use my Calendly Link. Alternatively, you can contact New World Precious Metals to discuss purchasing options for physical precious metals.
In these turbulent times, it's crucial to ensure that your portfolio is well-positioned to withstand potential economic challenges and market fluctuations. By considering the incorporation of Gold, you may be able to fortify your investments and better navigate the complexities of the current financial landscape.
A Partnership for Holistic Wealth Management
As a dedicated advocate for de-risking business, family and multi-generational wealth, I am partnered with one of the leading independent private wealth management firms. My team serves high-net-worth clients nationwide. We provide professional investment management and comprehensive wealth planning solutions from a fiducially focused, client-first perspective. We provide access to sophisticated tax-advantaged strategies and solutions traditionally reserved for the ultra-affluent.
We are driven by a "capital preservation first" philosophy. Our team generates consistent, tax-efficient returns uncorrelated to public markets. By leveraging our expertise, you are granted access to key industry professionals, gaining exclusive entrance into alternative investments such as private equity, private real estate, precious metals, commodities, government-sanctioned flow-through tax-efficient structures, and tax-minimizing corporate insurance solutions offered through mutual life companies. All are designed to fortify, secure and de-risk your family, business and estate assets against financial risk, economic threats, inflation and higher taxes.
To receive a complimentary digital copy of "Who's Investing Your Money?," email me at [email protected] or book a complementary portfolio evaluation with me through my Calendly Link.
The Custodial Model: An Additional Layer of Protection
In light of the revelations in David Rogers Webb's book The Great Taking , to further safeguard wealth, the firms I work with employ a custodial model, where client assets are held securely by an independent third-party custodian rather than commingled with the firm's assets. This crucial segregation of assets provides an additional layer of protection, reducing the risk of seizure or misappropriation in a financial crisis or institutional insolvency. The custodial model offers investors a safeguarded solution to help secure their wealth separately from the investment management firm.
Watch The Great Taking Documentary
Additional Resources:
Exploring the U.S. for Wealth Security
Amid economic uncertainty and high taxes in Canada, many affluent Canadians are considering relocating their wealth to the United States. The U.S. offers a more favourable tax environment and stronger asset protection laws. Peter J. Merrick, a renowned cross-border specialist, assists Canadians in navigating international wealth management complexities, facilitating seamless asset transfers to diversify holdings and safeguard their hard-earned assets from potential risks.
For Full Details, CLICK HERE
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Adrian C. Spitters FCSI?, CFP?, CEA? President, Author, Private Wealth Advisor
I Execute Tax-Efficient Investment Portfolio Solutions So That Your Business, Family, And Estate Assets Are De-Risked And Protected Against Financial Risk, Economic Threats, Inflation And Higher Taxes.
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4 个月Very useful information.