Using Precious Metals Like Gold and Silver to Hedge Your Investments

‘With the exception of the last 45 years, gold has been our money.’ -Scott Carter Click To Tweet

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The economy has been booming, but what goes up goes down. The stock market and real estate market have been at highs, and it could soon be time for a market correction. My guest today is PM Capital CEO Scott Carter. Scott is an expert investor when it comes to precious metals.

In today’s show, Scott shares why gold and silver are the perfect assets to hedge your investment losses when the market does correct. He talks about the perfect percentage to balance your portfolio and how you store or take possession of gold and silver. He also shares historical perspective on gold and some wise financial and investment insights.

You can find Scott here:

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‘I would urge investors to take a fresh look at their portfolio and think about rebalancing.’ -Scott Carter Click To Tweet

Show Notes

  • Close up shot of pure gold bars[01:21] Scott started out in the financial services industry at insurance companies.
  • [01:38] He learned direct to consumer marketing and how to make money with insurance.
  • [01:55] He then helped a private equity firm evaluate businesses.
  • [02:17] This led him to the industry he is in now which is a precious metals company based in California.
  • [02:21] He is now an owner and a CEO.
  • [02:56] Scott speaks about and educates investors on the role that gold and precious metals can play in their portfolio.
  • [03:10] Scott talks about the gold standard and the current Federal Reserve.
  • [03:26] Up until 1933 we actually had gold coins in our pockets that were used as money.
  • [03:38] Franklin Delano Roosevelt took our country off of the gold standard and citizens turned in their gold to the banks. They received paper money in return.
  • [04:14] In 1971,Nixon closed the gold window and said that US money will no longer be backed by gold.
  • [05:04] The only way we could increase money supply was by creating real wealth.
  • [05:48] Debt is a huge problem and a huge drag on economic growth.
  • [06:44] Gold and silver is important to investors because they are tangible assets that are not dollar based and tied to the markets.
  • [07:42] Gold and silver can help offset risk factors that are in the market.
  • [07:59] Loss of buying power or inflation is robbing us of wealth day in and day out.
  • [09:34] It’s not what you have it’s what you keep, and gold has been the perfect hedge when it comes to the devaluation of money.
  • [09:41] Gold holds value and enables us to purchase the same goods and service that we were able to purchase in the past.
  • [10:11] Precious metals are a complement to your investment strategy. No more than 10% to 15% of your portfolio should be in gold.
  • [11:09] When the market does well gold could be flat. Gold is to hedge your assets.
  • [11:44] Is it time for a real estate correction? We are probably overdue. Historical indications are triggered that we are overvalued.
  • [13:28] When you get to the end of the market fewer and fewer companies make up the increases in the market. Currently we have five companies making up the increases in the market.
  • [13:38] Facebook, Amazon, Netflix, Apple, and Google make up 50% of the S&P 500. This means we’re getting to the top.
  • [14:23] I would urge investors to take a fresh look at their portfolio and think about rebalancing.
  • [14:39] Make sure that you don’t have too much concentration in any one asset class or industry.
  • [14:47] Look at how precious metals like gold and silver can offset some of the risk factors that you have.
  • [16:08] Bitcoin is the digital gold. What gives bitcoin value is that it can’t be recreated.
  • [17:47] Having something outside the control of central organization is significant.
  • [18:59] To own gold and silver you make a purchase and fund the account. Most people put the gold in their safe.
  • [19:38] There can also be storage arranged for you. Owning gold and silver is a simple transaction.
  • [20:24] Gold and silver is defined as a collectible with the 28% tax rate.
  • [21:26] The US is the country that owns the most gold. China is catching up with us.

 

‘It's not what you have. It's what you keep. Gold has been the perfect hedge when it comes to the devaluation of money.’ -Scott Carter Click To Tweet

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