How Not to Lose $400,000 Within One Month: Gold and Silver Investing

Creating a nest egg or retirement account involves real risk. Without careful investment choices, substantial portions of those assets can lose value very quickly.

When this article was originally published, Atlanta Gold & Coin had an opportunity to discuss ways a customer might seek more from her capital while limiting a major loss. The discussion included precious metals such as silver and gold bullion.

Instead, she remained in the stock market, a choice the original article said cost her $400,000.

Every Investment Carries Risk

Any place you put money can involve losing part or all of it. In the stock market, a sharp decline could leave shares worth only pennies. Even cash kept under a mattress has risks: a house fire or theft could make it disappear quickly.

What about an ordinary savings account? Could it avoid loss? It may be comparatively secure, but changing economic conditions can reduce what those dollars buy, meaning their value has effectively declined.

Precious metals, like the other investments described here, can fluctuate in value. There can be periods of greater gains, lower returns, increased investing, or holding back. The original article therefore said that guidance from an advisor could be useful.

Overexposure Can Create Trouble

Consider the idea of overexposure.

In principle, risk can be spread among several markets. A person might place some funds in stocks, some in real estate, and some in precious metals. The issue with this customer’s portfolio was its heavy concentration in stocks. Put another way, she had too much exposure to the stock market.

Markets Priced Too High

Markets viewed as overvalued can often present problems. A market is considered overvalued when its then-current price rises well beyond what projected profits appear to support.

That described another concern facing the customer. The original article characterized her stocks as significantly overvalued. Its advisors believed a price decline was only a matter of time.

The original discussion said it was time to enter other markets and lessen the risk of being overexposed to one overvalued market.

Advice, Decision, and ResultAt the time of original publication, the article described the following:

Atlanta Gold & Coin recommended diversification through placing part of her funds in gold and silver. The original article explained the reasoning and potential diversification benefit. Although the customer moved some holdings into gold and silver, she retained substantial stock-market exposure, which remained her choice.

She decided to keep her complete confidence in the stock market.

The original article said the customer’s investments then lost value rapidly as news was followed. By the time she exited the failing investments, or at least by the conversation described in the article, she had lost $400,000. The article noted that few people can absorb such a loss and that it was painful for her.

The original article stated that she still had time to make different choices and that Atlanta Gold & Coin was prepared to help.

Why Consider Gold and Silver?

The article did not suggest advisors would likely tell someone to sell every stock and put everything into precious metals. It argued, however, that a sound portfolio needs diversification. It asked what better way there might be to reduce risk while creating opportunities than to invest in physical gold and silver?

The original article offered these reasons.

The Precious-Metals Market Behaves Differently

Because precious metals do not necessarily move with the same patterns as stocks, the article said they can offer some protection. A stock-market crash does not automatically mean gold and silver will lose value as well.

Indeed, history includes many periods in which gold rose while stocks declined.

Gold and Silver Possess Intrinsic ValueAt the time of original publication, the article described the following:

The original article asserted that long-term precious-metals investing could not result in losing everything. Whatever other markets did, it said gold and silver would retain intrinsic value. Supplies of these metals are limited. Easier deposits have already been mined, requiring miners to spend more time and energy extracting lower-grade ore. It also suggested that recent annual production declines might indicate peak gold and silver had been reached.

Gold and silver are tangible, solid, and heavy. The article described reassurance in holding them and knowing they cannot be easily destroyed or made valueless. While stock certificates can lose all their value, it maintained that precious metals would not become worthless.

Many coins can also carry collector value in addition to intrinsic and market value. Understanding which coins may be suitable for investment can help people use precious-metals funds more thoughtfully. When this article was originally published, Atlanta Gold & Coin said it could help people select rare or old coins, bullion coins, or gold and silver bars, whether they collected or invested.

A Hedge Against Inflation

Precious metals are often described as a hedge against inflation. The article explained this by noting that, unlike dollars, they cannot be printed on demand. Only the gold and silver existing in nature will ever exist. It said these metals protected against declining fiat-money value.

U.S. currency is legal tender, but the article said it could not offer the same stability of value as precious metals. At the time of publication, it characterized the economic situation as one where inflation protection was important. Just take a look at the current US economic numbers!

Greater Control of Your Investment

The article said precious metals’ liquidity gave investors more control. It stated that gold and silver could be sold when appropriate and could also be purchased quickly.

It said investors could raise or lower their precious-metals holdings with little notice, allowing them to manage their exposure.

Overall, the article presented precious metals as one part of a broader investment portfolio. It also stressed that deciding when and how much to invest in any market was important. At publication, readers were invited to speak with a friendly Atlanta precious-metals dealer.

Obtaining Precious-Metals Investment Guidance

When this article was originally published, it said finding a suitable Atlanta gold and silver dealer was straightforward: seek precious-metals specialists with years of experience and a broad network of industry leaders, buyers, and sellers. Atlanta Gold & Coin Buyers was presented as fitting that description and as ready to provide investment guidance.

The original article said that people who sought precious-metals investment guidance there received an unvarnished view of investment conditions, along with clear, dependable information to support their own investment decisions.

It also stated that, at publication, other precious-metals services were offered, including appraisals and the buying or selling of rare coins, gold, and silver.

For precious-metals information and services, the original article invited readers at publication to contact us at Atlanta Gold & Coin Buyers. It cautioned them not to wait for another $400,000 loss before making investment choices.

At the time of original publication, the article described the following: At publication, readers were invited to call 678-515-5763!