Protecting Assets by Holding Physical Precious Metals

The old saying claims that, “One in the hand is worth two in the bush.” This statement is true to many who believe that the best way to protect gold and other commodities is through holding of the physical precious metals.

Holding physical precious metals means that an investor actually takes delivery of gold, silver or other metals as opposed to buying metal stocks, futures or IRAs. While this requires the investor has the commodity “in hand”, it is a known quantity and he has it at his disposal to move as he sees fit.

Two advantages of holding physical precious metals are liquidity and, in the case of rare gold coins, protection from confiscation. Gold bars or coins are considered to be highly liquid commodities. In many countries, gold is viewed as a de facto currency, and many people will accept it as payment for goods or services.

Physical precious metals also have a historical precedent for security from government intervention. Twice in the history of the United States, the government introduced a buy-back program on gold, forcing people who owned it to sell it back as a way to replenish the national treasury. Only people who held rare collectable coins were allowed to keep them.

Physical precious metals make buying and selling easy, provide an alternative money source in desperate times, and can provide protection from government intrusion. If a bird in the hand is worth two in the bush, the American double eagles in an investor’s safe can be worth more than metals futures and the paper they are printed on during uncertain times. 

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Danny Burns

Senior Staff Writer - Precious-Metal.org