1. GOLD IS UNDERVALUED
In 1970, the price of gold continued to be suppressed at $35 an ounce. When gold ownership was legalized in 1975, the fair market price of gold went up to nearly $200 an ounce. Now in the early years of the 21st century, we believe gold remains undervalued at its current price. This relatively low gold price can be measured by today's higher pricing for housing, automobiles, education, medical treatment, entertainment, etc.
2. GOLD OFFERS PRIVACY
When you store some of your own wealth in gold, you maintain a level of privacy that cannot be attained in most investments. Personal storage provides protection for your personal wealth from political, economic and financial insecurity. You control the asset, not a third party.
3. GOLD OFFERS SAFETY
Gold serves as a financial safe harbor in uncertain and turbulent financial times. Whenever there is political, social, and financial unrest around the world, people flee to tangible assets and away from government currencies. Gold ownership serves as a sense of stability and security in the face of an unsure future.
4. GOLD OFFERS GROWTH
Historically, our government's short term fixes for the current financial crisis have translated into long term inflation and further ex post facto devaluation or actual financial devaluation of the U.S. dollar. As a result, we believe gold will continue to appreciate and grow for the decade to come. From 2000 to 2008, gold increased at a rate of 15% or more per annum. In 2009 to 2012 gold increased even more while the financial world continued in turmoil. Today the world is experiencing both inflationary and deflationary factors with falling commodity prices. Therefore, gold's value today appears to offer still another opportunity for growth.
5. GOLD OFFERS SECURITY
Owning gold makes your wealth portable and personally manageable. Gold provides a safeguard against the future possibility of the devaluation of U.S. currency and the instability of financial institutions. Gold's ease of liquidity allows for transfer into the currency of your choice in times of need.
6. GOLD OFFERS TAX DEFERMENT
Each year you make a profit on stock holdings, you pay taxes on that profit even when you do not see the profit through stock sales. When you physically own the gold for more than one year, you defer all tax consequences until you physically sell and your profit is realized. As long as you own the gold, you have an ongoing tax deferment and are given capital gains treatment.
7. GOLD OFFERS DIVERSIFICATION
Typical portfolios traditionally consist of stocks, bonds, mutual funds and money market instruments. Including gold in portfolios introduces a level of protection not found in other asset investments. Because the factors that influence the price of gold are, for the most part, independent from those that affect the prices of these other assets, gold can help offset market fluctuations and may help reduce volatility.