Birch Gold Group 2021 Information Kit

Birch Gold Group
2021 Information Kit

Beware of Gold Products that Aren’t Actually Gold

In an attempt to diversify into precious metals, some people purchase what’s commonly called “paper gold” instead of real gold. However, with these alternatives to physical gold, appearances can oftentimes be deceiving. Instead of directly buying tangible gold, you’re buying a piece of a proxy that presents some unique risks. 

For example, gold ETFs are trusts that own gold. The trust is not liable for any loss, damage, theft, or fraud that may affect the price of shares that they market and sell. Furthermore, shares in a gold ETF can almost never be used to redeem any gold; they’re simply a digital version of gold, not gold itself. 

Mining stocks often benefit when the spot prices of gold and silver increase, but they are also affected by the company’s infrastructure, debt loads, actions of foreign governments, and the increasing difficulty and cost to extract the metals from the ground. Ultimately, mining stocks tend to reflect the broader movements of the stock market more than movements in the precious metals markets. 

In an attempt to diversify into precious metals, some people purchase what’s commonly called “paper gold” instead of real gold. However, with these alternatives to physical gold, appearances can oftentimes be deceiving. You’re rarely directly buying tangible gold, but instead a proxy that presents some unique risks. 

For example, gold ETFs are trusts that own gold. The trust is not liable for any loss, damage, theft, or fraud that may affect the shares that they market and sell. Furthermore, shares in a gold ETF can almost never be used to redeem any gold; they’re simply a digital version of gold, not gold itself. 

Mining stocks often benefit when the spot prices of gold and silver increase, but they are also affected by the company’s infrastructure, debt loads, actions of foreign governments, and the increasing difficulty and cost to extract the metals from the ground. Ultimately, mining stocks tend to reflect the broader movements of the stock market more than movements in the precious metals markets. 

 
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In the gold certificate market, there is not enough registered gold to back the certificates that are traded. In 2012, there were about 20 claims on the Chicago Mercantile Exchange (COMEX, the world’s largest commodities exchange) on every one ounce of physical gold in its registered inventories. Four years later, in 2016, the number ballooned to 550 paper ounces outstanding for every physical ounce of gold in the COMEX supply

Physical gold, on the other hand, carries none of these risks. Once you buy it, it is yours. When you make a cash purchase, it can be stored in the location of your choosing. It can be used as a currency, and the market for it today is as liquid as ever. Any breakdowns in the stock market, the paper gold market or commodities exchanges may increase the value of your physical holdings.

“You have to make a distinction between owning an ETF or a gold mining stock and gold itself. If you want gold as an insurance policy, buy the tangible pieces of metal.”

– Publishing Executive Steve Forbes,

in an exclusive interview with Birch Gold Group

“Paper is poverty. It is the ghost of money, and not money itself.”

– Thomas Jefferson

“You have to make a distinction between owning an ETF or a gold mining stock and gold itself. If you want gold as an insurance policy, buy the tangible pieces of metal.”

– Publishing Executive Steve Forbes,

in an exclusive interview with

Birch Gold Group

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DISCLAIMER: The decision to purchase or sell precious metals, and which precious metals to purchase or sell, is ultimately your decision alone. Purchase and/or sale decisions are highly individual and must be a function of each customer’s individual financial situation, goals and risk tolerance. Birch Gold Group is not a financial planner, investment advisor or retirement specialist. Birch Gold Group is not responsible for your decision to purchase or sell precious metals, or the timing or results of any such act (or failure to act). Any and all assistance Birch Gold Group may offer or provide does not create a fiduciary relationship between you and Birch Gold Group. Any and all purchases and sales are made subject to your own research, prudence and judgment. Birch Gold Group does not provide tax, investment, financial planning, retirement-specific or legal advisory services and no one associated with Birch Gold Group is authorized to render any such advice or service. Birch Gold Group is not responsible for any consequences of you purchasing precious metals for IRAs, trusts or other persons or entities, or for any changes in the laws relating to such purchases or sales. Any written or oral statements by Birch Gold Group, its principals, agents or representatives, relating to future events constitute opinions only, and are not representations of fact.