Why Your Financial Advisor Won’t Recommend
Physical Precious Metals
Has your financial advisor, bank, or brokerage ever recommended that you diversify your retirement savings with physical precious metals? More than likely, they have not and, unless you ask them directly about physical precious metals, they likely never will, and have many reasons to never recommend it.
Diversifying your retirement portfolio is one of the most important strategies for protecting your hard-earned savings. You never want to keep all of your eggs in the same basket, this is why we always recommend to retirees and investors that it’s important to diversify your portfolio with physical precious metals. Physical precious metals help balance your portfolio and play as a hedge against market uncertainty, inflation, and geopolitical tensions.
So, with all of these benefits that physical precious metals can bring to one’s portfolio, how come financial advisors never recommend it or are completely against it? The answer is simple, they cannot make any commissions or fees from a transaction of physical precious metals. They prefer to keep your savings in the investments they have because that’s how they make their management and commission fees.
Another factor on why your financial advisor would never suggest you diversify your savings with physical precious metals is that they are only licensed to offer and sell equities such as stocks, bonds, mutual funds, and ETFs. They may try to offer “paper” versions of precious metals- such as a gold and silver ETF or mining stock – but just as with any paper asset, these are simply promises printed on a piece of paper.
Keep in mind gold and silver ETFs or mining stocks are not real gold and silver, so you will not receive the same benefits as if you were holding the actual precious metals in your portfolio.
You have to also keep in mind that financial advisors not only don’t understand the precious metals market, but they were also never trained to educate or recommend gold and silver to their clients, because once again it does not benefit them to do so.
Financial advisors only believe in one point of view when it comes to the economy and stock market. It’s to their benefit to only believe that the stock market will continue to increase, so they can sell the products that their banks or brokerages offer.