Why Your Financial Advisor Won't Recommend Physical Precious Metals

Why your financial advisor wont recomment physical precious metals_img2

Has your financial advisor ever suggested that you purchase physical precious metals as part of a strategy to diversify your savings? In all likelihood, they have not. And, unless you ask them directly about physical gold or silver, they will probably never even raise the topic.

If you do ask a financial advisor about physical precious metals, be prepared for some hesitation. They may talk about liquidity, or lack of income generation. Then you might find them changing the subject to traditional investments they can sell you.

Diversification is one of the most fundamental strategies for protecting your savings. The Securities and Exchange Commission (SEC) even refers to it as “The Magic of Diversification” and adds:

"...you may be able to limit your losses and reduce the fluctuations of investment returns without sacrificing too much potential gain."

What do most financial advisors have against physical precious metals? The short answer is simple:

In almost all cases, they cannot make commissions or fees from such a transaction. Instead, your savings would move out of the funds they currently manage for you – perhaps forever.

Additionally, financial advisors are only licensed and trained to sell other types of assets.

They usually don’t follow or even understand the precious metals market. And since they can’t sell physical gold or silver, they wouldn’t profit from your diversification even if you did.

Finally, financial advisors generally only subscribe to one point of view on the economy.

Think about it: Did they warn you of the Great Financial Crisis in time to do anything about it? That’s because it’s in the best interest of financial advisors to promote a rosy economic picture regardless of reality simply so they can sell you products based on their forever-optimistic worldview.

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