As multifamily investors, we’re all looking to build wealth and achieve financial freedom. The scary part is, we don’t have control over how much our money is worth. And as our government continues to print money with wild abandon and accumulate massive debt, the value of the US dollar declines. Yes, we’re smart to invest in physical assets like real estate to hedge against this kind of currency devaluation. But is there something else we could be putting our money in as an insurance policy of sorts? Something that increases in value as paper assets decline?
Dana Samuelson is the President of American Gold Exchange, a leading precious metals and rare coin company. A professional numismatist since 1980, Dana has been involved in a billion dollars’ worth of precious metals transactions. Brien Lundin serves as host of the New Orleans Investment Conference and Executive Editor of the Gold Newsletter, the oldest precious metals advisory in the world. With 40 years of experience, Brien is an expert in precious metals and mining share markets as well as the economic and geopolitical issues that impact them.
On this episode, Dana and Brien join me to explain why the average real estate investor should consider adding precious metals to their portfolio. They describe how gold serves as a counterbalance to paper assets and warn us about the accelerating devaluation of US currency. Dana and Brien also discuss the outlook for gold in the current economic climate, offering insight around the relationship between interest rates and the value of precious metals. Listen in to understand the process of buying gold and find out why it should be a part of your overall investment strategy!
Key Takeaways
Dana’s extensive background and experience
- President of American Gold Exchange
- 40 years in precious metals
Brien’s extensive background and experience
- Executive editor of Gold Newsletter
- Host of New Orleans Investment Conference
Why real estate investors should care about gold
- Natural counterbalance to paper assets
- Gold goes up when stocks, real estate go down
- Global economy weakening in last 6 months
- Took off in 2008 during crash (liquid asset)
Brien’s insight around currency devaluation
- Central bankers print money with wild abandon
- US $22.5T in debt, interest rates at global all-time lows
- Forgiving debt = accelerates decline in value
- Will need to borrow to pay interest in next few years
The outlook for gold in the current economy
- ‘Gold loves cheaper money’
- Bond yields plummeted in last 6 months
- Fed forced to cut interest rates further
How interest rates impact the value of gold
- Gold has no interest, must pay carrying cost
- No burden to buy when interest rates low
The 3 ways to buy gold and other precious metals
- Paper trade via ETFs or GLD
- Invest in gold mining stock
- Physical gold dealer (sovereign minted)
When to invest in paper vs. physical gold
- Paper good when confident in uptrend
- Need physical as foundation (economic uncertainty)
The process of buying and selling physical gold
- Call or visit reputable dealer to discuss
- Pay current price + minting premium and dealer fee
- Gold shipped and insured through FedEx or USPS
- Store in safe, accessible place
- Sell to any reputable dealer
Brien’s top takeaway around investing in gold
- Precious metals are form of freedom
- Insulate you from mismanagement of currency
Dana’s top takeaway around investing in gold
- At least 5% to 10% of portfolio in gold or silver
- Serves as insurance policy for rest of money
Connect with Dana
Email [email protected]
Connect with Brien
New Orleans Investment Conference
Resources
Professional Numismatists Guild
Investor’s Guide to Gold & Silver
Apartment Investor Network Facebook Group
Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank
