Your Financial Advisor Will Not Recommend Gold, Decide for Yourself

I’ll never forget what a very dear, and wealthy, friend of mine once told me: The biggest gains are made in times of turmoil, IF you have prepared before the storm hits! Today, great risk AND opportunity is staring us right in the face.

The global economy, and particularly western economies, are going nowhere. The recovery story that some pronounce will most probably not occur anytime soon. A chart that I like to share in this context is shown below. You see the IMFs World Real GDP Growth Forecasts since 2010. Their forecasts are always too optimistic. The black line depicts the actual and downward trajectory of global growth. The latest IMF World Economic Outlook was published only a few weeks ago. As always, the report is worth reading. It is excellent, and very outspoken, at least in its analysis of the current challenges and risks. However, the forecast is again too optimistic, and it does not match the prior excellent analysis.


We’re faced with a host of challenges and uncertainties in politics, the global economy and financial markets. Too much debt, too much regulation, too much government… everywhere! In addition, we are currently witnessing what I would call an international “social mood swing”. This mood swing is apparent and starting to gain traction, more visible than ever in the context of the US presidential race, even if it is being brushed off by the elite and mainstream media as the “stupidity of those irredeemable masses”.

The level of conceit displayed by the establishment in the current change of the political climate is adding further to the change dynamics in American and Europe. And, it should alert you to the prospects of a very relevant trend adjustment. Social mood swings are at the core of major economic trend changes; they are much more relevant than all the many incidents and daily events covered so ferociously by media pundits.

In other words, you as an investor should not fall into the trap of trusting the beat of the mainstream drummer. You need to step back, think, and consider your options. If you have spent any time at all thinking about the current state of affairs – with the TV turned off – you know that serious challenges exist. But what are you going to do with that knowledge?

Thinking, speaking AND acting independently – it takes courage!

After several decades of relative peace and prosperity, you need to switch gears and think about preparing for less prosperous and less peaceful times. Savvy investors and wealthy families all over the world recognize this, and they are in a very active mode of adjusting their planning to effectively address the big picture challenges ahead.

However, most investors are going to remain in sleep mode. In doing so, they may miss out on not only properly protecting themselves, but also setting themselves up for some of the greatest profit opportunities ahead. Don’t be one of them!

It reminds me of a comment made by one of our clients at our most recent Plan B Briefing in Austin, Texas. We had a great group of wealthy American families and investors at the event, and the discussion revolved around the best strategies to protect wealth during the upcoming “storm”. One angle discussed was the safe ownership of physically allocated gold. Our client acutely observed:

You know Frank, everyone sees that things are going in the wrong direction. And yet, when I mention to my financial advisor that I am keeping and investing my assets with a bank and asset management firm in Switzerland, he looks at me as if I was crazy. He doesn’t have any new advice for me other than to keep doing what we’ve been doing. It seems most people would agree that there are problems ahead, but no one is willing to leave the beaten path!

Unfortunately, he is right. Statistics show that, like investors in general, the vast majority of advisors talk and act in group mode. It’s experienced as the “safer” path. Therefore, your average financial advisor’s advice will be composed of “mass fodder”, missing out on the best opportunities and strategies available, even under the very special circumstances we live in today.

Why your average financial advisor will be of much help

Let me use an example to make my point. In consideration of the flood of paper money and paper assets, you may be considering to buy a REAL asset, gold – and not the paper type like the GLD ETF which is backed by nothing more than Wall Street promises and a large bank’s shaky balance sheet. You want the real deal, physically allocated gold bars. And you want to store that gold in a foreign high-security vault. Just to be sure, you ask your long-time and trusted financial adviser about it. That’s only natural. I can already hear what he will say: “Oh no, don’t do that. Gold is a useless piece of rock. It does not pay any interest. And the safest place on earth is the US! Why would you go offshore!?”

Clearly, he does not like your idea. Why not? Because most financial advisers only deal with paper assets like stocks, bonds and mutual funds. Buying gold via something like the GLD will generally be much more acceptable to them, because it’s what they know and what they have been selling for years. It’s what all the other advisors are recommending. It’s like walking into a Toyota dealership and asking for help in buying a Mercedes… it’s just not what they do. Paper assets are in their comfort zone.

When you buy physical, real assets like gold bars, you’ll be moving money away from your financial advisor’s management, eating into his fees and commissions that he makes when you invest in stocks and bonds. Most financial advisers are simply storefronts for large banks and financial institutions. And even independent advisers who charge a fee instead of earning a sales commission, who will typically tend to be more objective, will generally only handle paper investments that are bought and sold at the click of their so-familiar trading system.

In the end, it is YOUR responsibility to decide and act

These are not standard times we are living in. Therefore, you need to look “outside of the box” if you want to find solutions, a ‘Plan B’ so to speak. And, you may need to consider adjustments not only to the investment allocation side of things, but also to the structural setup you currently have.

When big empires stumble, it is not just financial markets that go sour. There are a host of other challenges that go along with such a phase, ranging from the various forms of financial repression to more taxes, litigation, social unrest and war.

Even your most trusted financial adviser – someone who may be an expert when you’re looking to invest in stocks and bonds — might prove to be completely useless when it comes to giving realistic, qualified advice on buying gold, or setting up a trust and asset protection scheme, or combining that with a compliant and globally diversified investment strategy. Your local advisor will tend to not have any such measures on hand. You will need to look and reach out elsewhere for that. Special times require special measures.

‘GoldSafe provides regular commentary and analysis of gold, currencies and the global economy.  All articles published here are to inform, not influence.  Only you can decide the best place for your money, and any decision you make or don’t may put your money at risk.  GoldSafe’s fundamental strategy requires the ownership of physical gold and does not recommend gold derivatives, ETFs or any paper substitute.’