Birch Gold Group 2021 Information Kit

Birch Gold Group
2021 Information Kit

Why Should I Purchase Precious Metals?

In uncertain times, precious metals are one of life’s few remaining certainties. Here are some of the reasons they can be a smart addition to your savings:

protection

PROTECTION

Few assets offer you and your family protection from political and economic uncertainty like gold and silver. Since 2001, the U.S. has fought in multiple wars, the Federal Reserve has pursued a series of loose monetary policies, and the stock market has gone through a rollercoaster ride of boom-and-bust cycles – and all the while gold and silver have maintained their “safe haven” reputation. From the Napoleonic wars to the Great Depression, precious metals have held their value (often rising dramatically) in times of crisis – and they have done so because they are one of the few things people trust when all else fails. Consider what publishing executive Steve Forbes told us in an exclusive interview: “Gold maintains its intrinsic value better than anything else on Earth, and that’s for 4,000 years.”

PROTECTION

Few assets offer you and your family protection from political and economic uncertainty like gold and silver. Since 2001, the U.S. has fought in multiple wars, the Federal Reserve has pursued a series of loose monetary policies, and the stock market has gone through a rollercoaster ride of boom-and-bust cycles – and all the while gold and silver have maintained their “safe haven” reputation. From the Napoleonic wars to the Great Depression, precious metals have held their value (often rising dramatically) in times of crisis – and they have done so because they are one of the few things people trust when all else fails. Consider what publishing executive Steve Forbes told us in an exclusive interview: “Gold maintains its intrinsic value better than anything else on Earth, and that’s for 4,000 years.”

protection
diversification

DIVERSIFICATION

In these uncertain times you need to protect your savings, and one way to do so is by diversifying. Most people have paper-backed assets – such as stocks, bonds and mutual funds – which, in today’s globalized world, fluctuate with each crisis. Since gold and silver benefit from safe haven demand in times of political and economic uncertainty, they tend to work independently from the performance of stocks and bonds, oftentimes performing well when they struggle. So precious metals are well suited to diversify your savings to stand up against inflation or market uncertainty – causes of concern for many today. For this reason, a number of analysts suggest that a portion of gold and silver could be used as a hedge against a downturn in financial markets, inflation or other economic and political uncertainty.

diversification

DIVERSIFICATION

In these uncertain times you need to protect your savings, and one way to do so is by diversifying. Most people have paper-backed assets – such as stocks, bonds and mutual funds – which, in today’s globalized world, fluctuate with each crisis. Since gold and silver benefit from safe haven demand in times of political and economic uncertainty, they tend to work independently from the performance of stocks and bonds, oftentimes performing well when paper assets struggle. So precious metals are well suited to diversify your savings to stand up against inflation or market uncertainty – causes of concern for many today. For this reason, a number of analysts suggest diversifying your savings with gold and silver as a hedge against a downturn in financial markets, inflation or other economic and political uncertainty.

PRIVACY

The assets in your savings are your business. At Birch Gold Group, we understand that it is your hard-earned money at work, and your privacy is very important to us. When making a cash purchase, your ownership of physical gold and silver is completely private. You possess the actual metals, so your holdings are not listed on the books or records of any other institution, are accessible to you at all times and are 100% portable. Our customers enjoy this peace of mind of knowing that they hold absolute control over their assets, which is so unlike other markets. Physical precious metals are not nearly as exposed or susceptible to national and international instability.

“No other commodity enjoys as much universal acceptability and marketability as gold.”
–Hans F . Sennholz, Economist
hedge

HEDGE

Gold’s reputation as the ultimate hedge against inflation is widely known. So, after years of loose monetary policy from the Federal Reserve, it is not surprising that it continues to shine! Consider how the dollar has declined over the past several decades. In 1930, $640 could have bought you a car. Today, that might be enough for a set of wheels for that car. Inflation means that year on year, decade on decade, the dollars in your pocket are worth less. But gold has kept pace with inflation for thousands of years! For example, in the time of Nebuchadnezzar, the king of Babylon who died in 562 B.C., an ounce of gold bought 350 loaves of bread. 2,500 years later, an ounce of gold today could still buy roughly 350 ordinary sliced loaves – perhaps even a little more.

HEDGE

Gold’s reputation as the ultimate hedge against inflation is widely known. So, after years of loose monetary policy from the Federal Reserve, it is not surprising that gold continues to shine! Consider how the dollar has declined over the past several decades. In 1930, $640 could have bought you a car. Today, that might be enough for a set of wheels for that car. Inflation means that year on year, decade on decade, the dollars in your pocket are worth less. But gold has kept pace with inflation for thousands of years! For example, in the time of Nebuchadnezzar, the king of Babylon who died in 562 B.C., an ounce of gold bought 350 loaves of bread. 2,500 years later, an ounce of gold today could still buy roughly 350 ordinary sliced loaves – perhaps even a little more.

hedge
liquidity

LIQUIDITY

Gold and silver are more liquid than you may think. Some banks now include gold jewelry and bullion in their list of liquid assets, which means that they may lend by keeping gold as collateral. Computerized trading networks allow some gold and silver coins to be bought instantly around the world, often without prior inspection. If the coins are in pristine condition and certified by industry experts, there is always a market for them. We have such faith in our precious metals that if you do decide to sell, we would like the first right of refusal to buy back.

liquidity

LIQUIDITY

Gold and silver are more liquid than you may think. Some banks now include gold jewelry and bullion in their list of liquid assets, which means that they may lend by keeping gold as collateral. Computerized trading networks allow some gold and silver coins to be bought instantly around the world, often without prior inspection. If the coins are in pristine condition and certified by industry experts, there is always a market for them. We have such faith in our precious metals that if you do decide to sell, we would like the first right of refusal to buy back.

INCREASING DEMAND

The demand for gold is everywhere–even from governments themselves. Since 2011, national central banks have purchased an average of 531.3 tons per year. China’s central bank has recently increased its purchases of gold by a substantial amount — to hedge against the billions of dollars in paper assets it holds but no longer trusts. Even countries such as Russia, Turkey and Ukraine are increasing their gold reserves.

Because most spending on gold is discretionary, its market structure is far more diverse than for most commodities. For example, about half of total demand for gold comes from the jewelry sector, with another 30% coming from investment. Even industrial applications, such as technological, medical, and dental uses, account for about 8% of demand. Some large institutions have also moved into gold: Several years ago, the University of Texas Investment Management Co., the second-largest U.S. academic endowment, took delivery of almost $1 billion in gold!

Central Bank Gold Demand

Record Level of Purchasing Since 2011

Cental bank gold demand-2-02
Cental bank gold demand-2-02

Source: Metals Focus; Refinitiv GFMS; World Gold Council 

DECREASING SUPPLY

As the demand for gold and silver increases, supply is under a great deal of pressure. From 2010 to 2018, the annual supply of gold has been relatively flat. Much of the gold ore that is ‘easy’ to access has been mined, leaving only the deeper ore that is more expensive to dig, lift, and process. The production of silver shows even less promise, with declines in mining output over the past three years. Add to this gold and silver’s uses in medicine, machinery and a myriad of other applications, and it seems as though supply is in long-term decline. So gold and silver are assets that are increasing in demand and decreasing in supply… it’s simple math.

“Paper money eventually returns to its intrinsic value – zero.”

–Voltaire

Why is personal ownership of physical gold important?

Those who own physical gold have an advantage in times of crisis and upheaval.

During World War 2, the U.S. Army issued escape and evasion kits to pilots and paratroopers who might be shot down behind enemy lines. These kits contained such essentials as maps painted onto silk scarves, first aid supplies, phrase books, a knife — and gold coins. Whether an airman crash-landed in China, Belgium, or North Africa, regardless of the local language or government or currency, gold was instantly recognized and prized.

When the USSR’s government collapsed in 1989, the ruble became virtually worthless. Prices for foreign goods skyrocketed. Those who owned gold could sell it for other currencies at fair value, while those who held only rubles found themselves standing in long lines desperate to buy scarce, locally-produced food and essentials, completely locked out of the global economy.

In 2016, the government of India announced all 500 and 1,000-rupee banknotes would be “demonetized,” and citizens required to exchange them for legal tender on a limited basis — and explain (and pay taxes on) suspicious amounts of cash. Crowds materialized at jewelry shops immediately.

In any time and place, the ability to carry easily-recognized stores of value, especially gold coins, has provided individuals with the opportunity to escape from political tyranny.

In the U.S., gold can be used as payment for goods and services. As recently as 2011, no states allowed gold as legal tender. Since then, several states have passed laws to change this and some have eliminated taxes on gold and silver. This trend is gaining momentum.

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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.