When I was in London in December, I got the chance to speak with an expert in rare and ancient coins. He showed me a rare Roman coin, with the face of a long-dead emperor still clearly stamped in the metal. He also spread Viking coins and others from an array of different periods in Europe across the table between us.
After years of staring at computer screens, watching stock prices inch their way up or down a chart, it was almost a surreal moment to hold those coins in the palm of my hand, to feel their weight.
There was no mistaking, in a world of fleeting paper profits, what I was holding in my hand was true wealth.
And I’m not the only one who believes it’s time to get a little more physical with our wealth…
Gold in Your Pocket
Demand for physical gold is on the rise. The World Gold Council revealed that while overall gold demand for the first quarter dropped 18% from the same period a year ago (where the 2016 first quarter was the strongest first quarter ever for gold demand), gold bar and coin demand increased by a healthy 9% at 290 tons.
What’s more, Bloomberg recently reported that two firms have plans to open new vaults in Europe capable of holding more than $112 million in gold.
BullionVault revealed that it added three tons in gold in the past 12 months, lifting its total holdings up to nearly 38 tons.
The Bank of England — which stores gold for the U.K. Treasury, other central banks and private firms — has added 6% to its holdings since the beginning of 2016, bringing its total holdings to 5,067 tons in February.
As you can see, more investors are adding physical gold to their portfolios — gold exchange-traded funds (ETFs) just aren’t going to cut it when you consider the fees associated with the ETFs.
And which would you prefer in times of turmoil: paper gains or the weight of a gold coin in your hand?
Many investors around the globe are adding physical gold to their assets for three big reasons:
- Rising inflation. We are starting to see signs of inflation in the U.S. and across Europe. In the past, we’ve seen the price of gold climb in tandem with inflation, allowing investors to stay ahead of its bite.
- Negative interest rates. While not a problem in the U.S., part of the world is still struggling with negative interest rates. And rather than giving over more of their wealth to banks, investors are opting to invest their cash in physical gold. (And considering that U.S. interest rates are still low, gold potentially offers a better return.)
- Geopolitical uncertainty. Questions about the health of the economy, the length of the bull market’s run, fighting in Washington, terrorist attacks, elections and more have left investors on edge, waiting for the next black swan event to swoop in and send the market crashing. In moments of chaos and destruction, gold is the safety net you want to have in place. Stocks plummet and bonds implode. Gold holds its value and even climbs.
A Safe Place for Your Gold
Acquiring gold coins or bars and storing them doesn’t have to be a difficult process.
One option is New Zealand Vault — an independently owned company that runs safe-deposit vaults located in Auckland and Wellington, New Zealand. With a stable government and banking system, New Zealand offers a secure location to store your wealth away from the hot spots of the world.
New Zealand Vault has developed a unique process that allows clients from anywhere in the world to open a safe-deposit box online, purchase bullion and have it deposited into their own private safe-deposit box.
In addition, New Zealand Vault is an authorized distributor for the Perth Mint and several of the world’s largest bullion wholesalers, which gives its clients access to all the major mints of the world. These include the Royal Canadian Mint, the U.S. Mint, Swiss PAMP and Johnson Matthey.
For full details on New Zealand Vault, you can visit its website at http://www.nzvault.com.
Another avenue for adding physical gold to your portfolio is the EverBank non-FDIC insured Metals Select® Allocated Account. It’s a great way to increase your own economic power. It allows you to purchase specific coins and bars, and it’s even IRA eligible (gold and silver American Eagle coins only).
For the sake of full disclosure, we receive a marketing fee based on our relationship with EverBank. But, honestly, we’d work with them regardless.
Regards,
Jocelynn Smith
Sr. Managing Editor, Sovereign Investor Daily