The Case For Investing in Physical Gold

Guide • Sep 08 2022
The Case For Investing in Physical Gold
MPM Posted on September 8, 2022

Gold was the standard currency for over 5,000 years. It was accepted as payment in many countries around the world, and it was a tangible measure of value.

These days, you can pay for just about anything with dollar bills, plastic credit cards, and crypto coins. They’re convenient and portable, and your funds are instantly transferable.

So why would you want to return to the old ways and keep your money in gold?

Gold Protects Your Privacy

The death of the paper fiat currency is near. A growing number of businesses don’t even accept cash anymore. Instead, they are taking credit cards or installing reverse ATMs to take your cash and give you a prepaid debit card.

This means that all of your money — and your transactions — can easily be tracked.
Saving money off the radar and out of the system is now a luxury.

Gold is your ultimate private savings vehicle. It is tangible and real, and it doesn’t get tracked digitally. Nobody needs to know everything about your portfolio. Physical gold will ensure they don’t.

Gold Protects Your Purchasing Power

In 1913, you could have withdrawn thirty paper $20 bills or thirty gold $20 Double Eagle coins to buy a nice new car.

Today, with the same thirty gold $20 Double Eagles, you can still buy a new car. However, thirty paper $20 bills will barely buy four car tires.

All fiat currencies lose purchasing power over time due to increased money supply and inflation. Gold has maintained its purchasing power throughout the millennia. The only sound money is gold.

Gold Increases in Value

In a 50-year timespan, physical gold has gained 4500% in value.

Meanwhile, the US dollar’s value has declined by 85% in the same time period. Today’s dollar has the purchasing power of just 15 cents in 1971 dollars.

Gold is still one of the most trusted forms of currency. The IMF categorizes physical gold as a Tier 1 asset (meaning “risk-free” or “zero-risk.”)

Here are just a few highlights of gold’s meteoric rise:

  • In 1971 President Nixon ended the US Dollar’s tie to the gold standard, turning the US dollar into a true fiat currency with no backing.
  • Four years later in 1975, gold reached $183 per ounce (up from just $35 an ounce) — a 400% gain.
  • In 1980, gold reached $660 per ounce, a gain of over 500% over four years as economic uncertainty and record inflation drove gold prices higher.
  • In 2008, the global stock bubble burst and the great recession hit. Gold reached $800 per ounce.
  • Three years later in 2011, gold reached $1,900 per ounce driven by the Great Recession and Global Stock Market Collapse. This is a 138% increase.
  • In August 2020, gold reached a price of $2070 per ounce, driven higher by the pandemic market collapse and global shutdown.
  • In 2023 the price of gold hovers near the all-time high as out-of-control inflation, and recessionary fears have driven risk back into the markets.
Why buy physical gold instead of an ETF?

In an economic or currency crisis, mining shares, ETF’s, and contracts, like all paper assets, can lose all value. With a gold ETF, there is counterparty risk. You are relying on another party to hold up their end of the bargain. Historically during periods of market crashes and instability, the ETF space for metals has had major risks and shortcomings. But physical gold never has. Physical gold is not someone else’s debt and is not part of a system riddled with vulnerabilities.

What Are The Best Ways to Own and Store Gold?

You can own and store physical gold in several different ways, including:

Private possession
The most common acquisition of metals is for delivery to hold the product privately in a location of your choice — such as your home safe.

Retirement account
You can keep gold in several different retirement accounts — including a Roth, Traditional IRA, SEP, Simple, and 401(K). The metals are stored per IRS regulations, but the storage is incredibly cost-effective. IRAs also provide excellent tax benefits when the values increase.

Vault storage
Metals held in such vaults are insured and very secure. Storage can be domestic or international, and there are storage fees associated with each. McAlvany Precious Metals can facilitate the opening of storage accounts on your behalf at a number of trusted depositories.

What Are The Best Gold Investments?

You need to know which investment best addresses your motivation, horizon, goals, and concerns. Here are some typical gold investments and points to consider:

Bullion Coins and Bars

Bullion coins and bars are very liquid and have the narrowest spreads. They trade at a slight premium over the spot price of their metal content.

Semi-Numismatic Coins

Their value is derived from the spot price of the metal, their rarity, and their condition. They have narrower spreads than numismatic coins, and they offer investors a balance between liquidity, security, and privacy. They also offer an added profit potential due to their premium fluctuations.

Numismatic Coins

A numismatic coin’s value is based on its rarity, age, condition, and demand in the marketplace. The spot price of gold plays a small part in the price of each coin, and premiums are higher than those of semi-numismatic and bullion coins due to their very limited supply. Numismatic coins may offer investors greater privacy and protection and are often generational coins for collectors.

How to Start Investing in Gold Now

McAlvany Precious Metals offers COMEX and NYMEX-approved forms of physical gold, as well as other precious metals in coins and bars. Each account is personally managed by experienced advisors who can help determine which precious metals are right for your unique objectives.

McAlvany Precious Metals offers secure storage of gold and other precious metals.

You have the option to securely store your gold in the most reputable and reliable independent vault storage facility in the US. Your metals can be segregated or non-segregated, and our fees are very competitive. Storage is fully insured and not part of the US banking system.

Or you can choose to store your gold internationally in our high-security, segregated vaults in Zurich, Switzerland or Toronto, Canada. Fees are comparable to US fees, and the storage is fully insured.

When you buy gold and other precious metals through McAlvany, you are covered with our Triple Protection Policy:

  • Guaranteed authenticity and grade of gold
  • Guaranteed repurchase of coins at the same grade and prevailing market price
  • All coins are personally inspected and individually selected by our in-house numismatist.

McAlvany offers zero commitment, no-obligation consultations with our expert advisors to help you find the right investment strategy.

To get started, contact us for a free consultation: 1-800-525-9556.


Learn how more about precious
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Double your ounces without investing another dollar!
Double your ounces without investing another dollar!