CategoryGold

The Gold Market And Gold Ownership From Philip Diehl’s Perspective.

Philip Diehl is the current president of the U.S. Money Reserve, a private firm that has been contracted by the government of United States to distribute its gold, silver and platinum coins in the country. Currently, the U.S. Money Reserve is the biggest distributor of government issued gold, silver and platinum coins all over the world.
Recently, Philip Diehl appeared before Enterprise Radio host Eric Dye to offer insight into his professional view and perspective of the hold market as an investment and about the gold ownership. As the president of the U.S. Money Reserve, Philip Diehl is in a better position to advise investors in America about investing in the precious metals industry.

Since the beginning of civilization, precious metals have not only been used as a medium of exchange but also a store of wealth. From what history has taught us, the precious metals as a store if wealth were very significant. It also the same as all the characteristics of the modern paper money as it was durable; it could easily be broken down; it was scarce in supply, and it could easily be transferred from one owner to another. The main advantage of the precious metals as a form of a store of wealth is that its demand increased day by day and thus its value also increased.

Philip Diehl urges the American people especially those seeking for investment opportunities to consider seriously investing in the precious metals industry. He says in the current world, keeping your money at a bank so that it can earn interest is a very risky game. This is because the current global economic state is not stable, and one is sure of the economic environment of tomorrow.

Inflation and devaluation are the biggest threats to paper money investment. This is beside the instability of interest rates. As inflation occurs the value of you, paper money investment reduces and its economic worth also reduces. This means that a number of commodities and services you would have bought with your money a few years back are more than what you can get currently with the same amount of money. Higher inflation rates lead to a fast devaluation of your money investment.

Your money investment at the bank is also subject to earning interest. This interest rates may not be as stable as you expect. During harsh economic times, the banks may award your investment as the small interest rate. This means that the longer the economic crisis, the lower your interest returns are. At the end of it you may not benefit from your investment.

Philip Diehl advises investors to go for gold investment as it is proof of all the disadvantages of paper money.

When Do Gold Investments Do Best?

One of the investments that many professionals recommend always be held in your portfolio is gold. While gold is recommended for its protection against inflation and other market declines and should be in your portfolio at all times, gold can also outperform the market in certain times and provide the ability to do well. It can therefore pay for you to hold higher amounts of gold in your portfolio at certain market times, which will be the focus of this article.

Gold outperforms the market in poor economic times mainly as gold is considered to be a stable investment that retains its value when the market goes south. Good and other precious metals are negatively correlated to the stock market appreciating when it decreases. People flock to gold in poor economic times and use it as a way of preserving their capital. There are many reasons gold is seen as a stable investment. For one, gold has universal appeal that has lasted throughout the generations. It is used for jewelry and coins and is stored as a reserve currency by countries. There therefore is a constant base level of demand for gold and the supply of gold is limited all of which bodes well for its value when other investments are in decline. As such, when the market is in free fall or you anticipate a big decline it is likely a good time to be overweight gold in your portfolio.

Miners are still mining gold but there is a finite supply of it available in the world. Paper money, on the other hand, can always be printed by central banks and therefore does not retain the same value of gold. This makes gold an excellent investment during times of high inflation or when you expect inflation to occur. Decisions by central banks to adjust interest rates can also drive inflation risk and if you believe a move by a central bank is imminent it may be a good time to be overweight gold. In addition it makes an effective hedge if the majority of your assets are held in one currency and you want to diversify away from it.

While making an investment in good can be particularly profitable at some various points it is particularly a good idea to always hold some gold in your portfolio. One firm that specializes in good investments is the US Money Reserve, Inc who have trained experts in gold investments and can provide recommendations on how best to hold gold and to provide you with recommendations for how much to allocate it. Gold is a different investment beast than other investment classes and it makes logical sense to gain their expertise when investing in gold.

© 2018 Greg Brownfield

Theme by Anders NorénUp ↑