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Paul Albarian & Associates, LLC, Jewelers  Retail, Burbank, CA

Investing in precious metals as a hedge against inflation

Precious metal prices usually increase alongside inflation, meaning inflation does not reduce the value of the precious metals. Inflation lowers the value of the US Dollar (and most world currencies), meaning it gradually takes more money to buy the same thing. Precious metal prices usually adjust for inflation. This means one ounce of gold can still buy pretty much the same quality and quantity of things it could buy over 100 years ago.

Precious metals are part of a balanced investment portfolio; most financial advisors suggest that their clients put 5 to 15 percent of their investment portfolio in precious metals. Stocks, bonds, real estate, and other investment vehicles are all subject to different market forces and world events. Putting too much of your money into one investment type can put your wealth at risk. But dividing your portfolio between different investment types limits your exposure to risk.

Precious metals are investments that protect against inflation, the devaluation of the US Dollar, and world instability. If you had $10,000 in an investment account in 1960, you were doing pretty well. A single family home in Burbank, California cost about $22,000 – a ratio of 2.2 times the value of your $10,000. If you had $10,000 of gold (approx. 283.5oz) in 1960 , the same amount of gold today would be worth approximately $373,725.50 – a much better nest egg! And that single family home is worth less than $600,000 today; a lot less than $822,196.10 (2.2 times $373,725.50).

Paul Albarian has over 23 years experience helping our clients select the best precious metal investments. In the past 23 years our clients’ portfolio from their investment in rare coins and precious metals has increased five to ten times. Their investment had increased more in 2011 when gold went to an all time high of $1920 per ounce. We believe in honest customer service and transparent pricing. We work with you to identify the best investment for your particular situation. Many gold dealers just want to make as much money as possible but we believe in building relationships with our clients, which means we always offer fair prices and keep your long-term interests in mind. After all, customer satisfaction is our highest priority.

Our prices are available on our website, and we will beat any verifiable price from a competitor. Visit our website to see the current prices for gold, silver, platinum, and palladium. Please click the refresh button to update the prices; every five minutes. We are confident they represent the best prices on the market. If you find a better price from a verified gold dealer, contact us and we will beat that price!

Want to learn more about investing in precious metals? Give us a call at (818) 827-7152.