Gold and Silver

Gold and Silver: Check back weekly as we post short videos as a way to delve deeper into our Power Hour. This week – we turn our focus to Gold and Silver! Don’t forget to tune in for our Power Hour on Friday August 5th as we discuss Universal Family Office.

Physical Coins vs Gold ETFs

Including an ETF within your portfolio certainly has a place and can serve as a risk management tool; many of our portfolios currently contain gold and silver ETFs, especially at this time.

However, this is just paper markets and what happens can definitely affect the price of those ETFs as well.
On the contrary, owning the physical coins means you have possession and possession is kind of nine-tenths of the law. They’re not going to change the value as the paper market can.
Plus, they’re not reportable. It’s not tied to your social security number, it’s not on any report. If you sell them later, there’s no 1099.
There was a study done by CPM group looking at how owning gold and silver affects your portfolio. It showed owning any amount of gold and silver increases your portfolio’s performance, but having between 10 and 20% also decreased the risk.
When you’re trying to track the physical coins, it becomes a little harder as they are not going to show up in your statement. However, in the long run, it helps because it always keeps that steady growth.
Spot Price is the cost for gold and silver that’s still in the ground, which can be very volatile, but the physical coins themselves tend to steadily increase over time. One of the easiest ways to track this is to ask us once a year or so what the value is and track that over time.

Investing in Gold and Silver vs Collecting

People measure the value of gold and silver in ounces, regardless of whether it’s in a necklace or a coin; the value of ounces remains the same.

You often hear people selling these collectible silver coins for a crazy high price. The ounces don’t hold a higher value; it’s a collectible. To realize the same value, you must locate another collector willing to pay that price. (The value of the paper on which a baseball card is printed remains the same; its worth is determined by someone else’s willingness to pay.)

The value based on ounces for the coin is now about $39, so they’re trying to sell it for $1000, then know that’s a collectible price.
It’s important to know the difference between investing vs collecting.  If your intent is to collect, that’s fine, but know that the value you’re paying for a collectible coin is not that silver isn’t worth any more than the other silver is. It’s just you’re playing for the collectible items.
We work with National Gold Consultants as they have taken all the steps to take and show that they’re working as fiduciaries. They only work through advisors because they want to make sure it’s part of your overall plan. 

If you’d like to schedule a personal one-on-one call with Michelle, click HERE to access Michelle’s calendar and schedule a day and time that is convenient for you.

We serve clients in Mineral Point WI, Dodgeville WI, Platteville WI, Lancaster WI, Fennimore WI, Boscobel WI, Richland Center WI, Muscoda WI, Spring Green WI, Mazomanie WI, Sauk City WI, Middleton WI, Madison WI, Fitchburg WI, Verona WI, Mount Horeb WI, Barneveld WI, New Glarus WI, Monroe WI, Belleville WI, Oregon WI, Stoughton WI, Darlington WI, Cuba City WI, Hazel Green WI, Belmont WI, Dubuque IA, Freeport IL


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