Research Trusts Gold Over Bonds

Most financial advisors who work for the major firms tend to advise clients to have a 60/40 ratio of stocks to bonds. They use the stock allocation to grow the portfolio and utilize bonds as stability. However, research from GraniteShares found that replacing bonds with gold and silver tends to mitigate risk more efficiently and provide greater annual returns.

The research showed that adding just 5% of assets into gold and silver improves performance compared to the 60/40 stocks and bonds allocation. In fact, their ideal performance shows stocks at 60% with 5% in bonds and 35% of the portfolio in gold and silver. Trimming the bonds down to 5% and increasing the pre-1933 gold and silver allocation saw annualized returns of over 14.5% since 2000.

Advisors who are already contracted with us know we never advise a client to possess 35% of their portfolio (although I choose to possess around that number). We simply advise 10% of assets in gold and silver inside everyone’s portfolio to serve as “wealth insurance.” Anything above 10% goes beyond “insurance” and is classified as investment.

Ryan Giannotto, director of research at GraniteShares stated, “Gold is essentially non-correlated to all market factors,” pointing out that over the last 20 years, gold has had a 0.007 correlation to stocks and equities.

The research is clear: financial advisors might serve their clients better by focusing their attention on gold and silver’s lack of correlation towards other investments and assets.

Maybe research and findings like these are why central banks are purchasing the most gold ever since 1968? Basel III – the international bank regulations set by the Bank for International Settlements – was released on March 31 of this year, changing gold from a Tier 3 asset to a Tier 1 asset. A Tier 1 asset is considered cash without risk, while Tier 3 assets are considered risky and can move up and down more than 50% in one year. The fact that gold is now classified as zero risk is very interesting to me.

Are the banks preparing for something as they load up on gold and silver (cash)? Many experts are calling for a market correction, possibly a recession in 2020. Next year surely will be interesting as it happens to be an election year. Are your clients’ portfolios ready?

When is the best time to purchase flood insurance? Is that during the hurricane when the eye of the storm is upon you? I prefer to have my insurance in place well beforehand. The same applies to wealth.

If you’re not already contracted with us, feel free to reach out to me directly. For those advisors who want to let their clients know about wealth insurance, the best way is to have a gold and silver (as wealth insurance) workshop. My October is already booked, but I would love to speak at your event for you.

Most financial advisors who work for the major firms tend to advise clients to have a 60/40 ratio of stocks to bonds. They use the stock allocation to grow the portfolio and utilize bonds as stability. However, research from GraniteShares found that replacing bonds with gold and silver tends to mitigate risk more efficiently and provide greater annual returns.

The research showed that adding just 5% of assets into gold and silver improves performance compared to the 60/40 stocks and bonds allocation. In fact, their ideal performance shows stocks at 60% with 5% in bonds and 35% of the portfolio in gold and silver. Trimming the bonds down to 5% and increasing the pre-1933 gold and silver allocation saw annualized returns of over 14.5% since 2000.

Advisors who are already contracted with us know we never advise a client to possess 35% of their portfolio (although I choose to possess around that number). We simply advise 10% of assets in gold and silver inside everyone’s portfolio to serve as “wealth insurance.” Anything above 10% goes beyond “insurance” and is classified as investment.

Ryan Giannotto, director of research at GraniteShares stated, “Gold is essentially non-correlated to all market factors,” pointing out that over the last 20 years, gold has had a 0.007 correlation to stocks and equities.

The research is clear: financial advisors might serve their clients better by focusing their attention on gold and silver’s lack of correlation towards other investments and assets.

Maybe research and findings like these are why central banks are purchasing the most gold ever since 1968? Basel III – the international bank regulations set by the Bank for International Settlements – was released on March 31 of this year, changing gold from a Tier 3 asset to a Tier 1 asset. A Tier 1 asset is considered cash without risk, while Tier 3 assets are considered risky and can move up and down more than 50% in one year. The fact that gold is now classified as zero risk is very interesting to me.

Are the banks preparing for something as they load up on gold and silver (cash)? Many experts are calling for a market correction, possibly a recession in 2020. Next year surely will be interesting as it happens to be an election year. Are your clients’ portfolios ready?

When is the best time to purchase flood insurance? Is that during the hurricane when the eye of the storm is upon you? I prefer to have my insurance in place well beforehand. The same applies to wealth.

If you’re not already contracted with us, feel free to reach out to me directly. For those advisors who want to let their clients know about wealth insurance, the best way is to have a gold and silver (as wealth insurance) workshop. My October is already booked, but I would love to speak at your event for you. Research