I’m Worried That Gold and Silver Are Too Risky An Investment

Ask the Expert

Damon Geller
President
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We all worry about risky investments. Yet gold and silver often get lumped together erroneously with other paper-based “investments” in the risk basket. I would argue that they should not be, especially gold. To us, gold is one of the least risky places you can store your wealth and it has also been one of the least risky places to find yield. Investments that work are ones that go up and have intrinsic value. Dollars in the bank or government bonds are nothing more than debt-based savings, while gold is real savings. When you consider what the bank is paying, real negative interest rates, and current Fed policy, sitting with your money in a bank has proven to be much more risky than gold.

Looking for wealth preservation or yield in the equities market certainly must be considered risky given it’s volatility and downswings, not to mention possible failure. When I hear people say they perceive hard gold ownership as “risky,” I can’t help but hope that they are capable of a change of perspective, because it’s their faith in paper that should be seen as risky and is misguided in our professional opinion. When paper provides no return, is losing value, losing faith, and intrinsically worth zero, hard monetary-based assets like gold and silver are the least risky assets.