How Your Financial Advisor is Killing You

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Stephen Leeb
Friday, April 15, 2016

For as long as I can remember, gold has been a forbidden investment for most financial advisors.

My understanding is that Certified Financial Planners (those people who are licensed to plan your retirement and give you financial advice for various stages of your life) will likely not be admitted into the CFP club if they argue on their exams that gold and precious metals should be part of a sound asset mix.

I'd say that's a shame, but I'd be understating the truth of the situation.

If your financial advisor isn't telling you about what's really going on in the gold markets and showing you easy ways to add gold to your portfolio, then from my perspective, I'd call that a tragedy.

Why am I calling this a tragedy?

Because gold has outperformed every major asset class this century!

Despite the correction in gold since its high in 2011, the yellow metal would still have given you better returns on your money than any other investment class.

More precisely, since December 11, 2001, the price of gold has climbed 360%, while stocks have gained about 80%. Gold has outperformed stocks by four-fold.

Moreover, if you divide the century into two (pre and post Great Recession), gold has outperformed all major assets during both periods.

Over the past 100 years, roughly the same time span that America has been the world’s largest economy, gold outperformed one or more of the major asset classes 30% of the time. Moreover, over the most recent 45 years, gold has been the premier asset over half the time. And in the past 15 years, the percentage is close to 100.

As these numbers show, from a long-term perspective, gold is a high-performing asset. More importantly, the figures show that the closer to the present one looks, the greater the odds that gold has left other asset classes in the dust.

From that perspective, owning gold today is not only a rational investment, it can also be a great way to protect yourself from market turmoil while profiting handsomely.

Unfortunately, many Americans simply don't know the best and easiest ways to add gold to their investment portfolios. Their financial advisors aren't giving them this information, perhaps because they lack the knowledge and expertise in the gold markets to advise their clients.

But I've got some good news for you: Gold is easy to buy.

You don’t have to have a brokerage account to buy gold. You can buy coins of small denominations, as just one example of the many ways to buy gold.

You could buy gold jewelry, which is a very popular way of investing in gold in China and India.

If you can’t afford small coin denominations or gold jewelry, you can buy silver instead. As I write this, one-ounce silver coins are a $16 investment. And while silver has underperformed gold since December 2001, it has outperformed stocks by a more than 3:1 ratio.

And here's some more good news if you're looking to invest in gold...

Select gold mining stocks have been on a huge upswing the past six months. I'm predicting this is just the beginning of a gold bull market...

I've seen gains in my gold stock portfolio of 53.8%... 66.7%... and all the way up to 149.3% in the last six months.

And here's what makes these recent gains so intriguing to me: The price of gold during this time period went up by only 10%, yet we're seeing gains in gold mining stocks of double, triple, quadruple that and more!

And why is this significant?

Historically, a sharp outperformance by gold stocks over the price of gold is great news in that it suggests further large gains in the price of gold and even larger gains in gold stocks.

To really benefit from what I predict will be the next big surge in gold, now is the time to start investing in gold or boost your holdings if you're already an investor.

My final advice: Don't let your financial advisor's lack of insight on gold investing dissuade you from doing your own research and making an educated decision that could protect and grow your wealth in the years to come.