Have you ever wondered how the ultra-rich protect their wealth?
After all, as stocks collapsed, the world’s wealthiest people faced losses in the hundreds of millions or even billions of dollars.
What do they do to protect against this massive downside?
It’s simple. They buy gold.
As longtime readers know, gold bullion is a time-tested store of value during financial crises. It’s insurance against a stock meltdown.
While stocks are starting to rebound from the recent crash, no one knows what will happen next. That’s why it’s important to be prepared… and why physical gold should be part of your portfolio.
But owning gold isn’t the only way to protect your wealth in the months ahead. There’s another way… one 99% of investors haven’t considered.
In short, this method can not only protect your wealth against the market volatility we’re seeing… but it’s also a solid avenue to secure huge gains during a crash.
First, I’ll explain why gold is still one of your best bets during a crisis… and then I’ll lay out this little-known method that any investor can take advantage of…
Gold bullion is still one of the best safe havens for your portfolio. For proof, just look to the last major stock market crash in 2008.
After stock markets plunged 54% in 2008, gold took off. Between October 2008 and July 2011, bullion outperformed the S&P 500 by a whopping 113 percentage points.
For wealthy gold owners, that “insurance” got them through the crash. Even as their stocks, real estate, and business interests were wiped out, they cashed in on gold.
Now, as we always say, owning physical gold is the first step.
But there’s another way to use gold’s wealth-capturing power to insure your portfolio…
Better Than Bullion
There’s another class of gold investments that is easy to buy, for anyone with a simple brokerage account.
Even better, these investments deliver higher returns than bullion during times of crisis.
You can buy shares of companies that develop gold mines. I’m talking about junior gold stocks. These are firms that own physical gold themselves, who do the storage, assessment, and transport for you. And whenever gold performs well, as it usually does after a crash, junior gold stocks benefit even more.
Look at how this basket of junior gold stocks performed during the 2008 collapse. In the same period when the S&P delivered 41%, and gold bullion – the weapon of choice for the wealthy – did 154%, gold stocks like these delivered a stunning 427% at their peak.
By David Forest