Gold Diversification – Diversifying Your Portfolio with Tangible Assets

One of the most important aspects of investing is the control of risk, relative to the expected return. Diversification, or selecting various asset types that are not closely correlated with one another (meaning that each reacts to a different set of market or economic conditions), helps to ensure that, in any market or economic scenario, a portion of your portfolio will retain or rise in value to offset any losses in other asset classes.

Investors should include tangible assets in their portfolios for two primary reasons:

1. Carefully selected tangible assets have the potential to dramatically increase the value of an investment portfolio.
2. Tangible assets offset the risks of stocks and bonds; they typically are not correlated with stocks and bonds and tend to rise in value when paper investment vehicles drop.

Gold Diversification – Diversifying within your gold portfolio.

Diversify within gold using our 3-Step Gold Strategy.

Investors can further strengthen and increase the potential of their overall portfolio by diversifying within gold. Blanchard’s 3-Step Gold Strategy guides you through the three categories of gold assets, Bullion & Investment Grade Gold (IGG), Mint State Gold and Numismatic Rarities. Each gold asset type is beneficial to your bottom line in different ways. Blanchard specializes in all gold asset categories and can help you safely navigate the gold sector. See a diversified gold portfolio.

Use our 3-Step Gold Strategy to diversify your gold investments for maximum benefit.

Recommended Portfolio Diversification:

Allocate your gold investment dollars across three categories of assets, each of which is beneficial to your bottom line in different ways:

1. Bullion & Investment Grade Gold (IGG)
2. Mint State Gold
3. Numismatic Rarities

Reasons to Diversify in 3 Types of Gold:

• Increase your wealth rather than just shield your existing assets.
• Protect your overall net worth from a larger range of economic and market conditions (since each asset type reacts to a different set of market indicators).
• Enjoy maximum protection and profit potential not just in the short term, but over the long term.

Blanchard’s 3-Step Gold Strategy:

While you can purchase Blanchard products from any gold asset category at any time, we’ve developed this 3-Step Strategy as a guide to balancing your portfolio:

STEP 1: Bullion & Investment Grade Gold

Conservative investments with short-term growth potential.

Gold Bullion Coins & Bars:

• Valued as a safe haven in times of economic depression
• Hedge against inflation, stock instability, currency devaluation
• Trade slightly above the spot metal price

Investment Grade Gold (IGG) Coins & Sets:

• These selected pre-1933 Mint State coins, known as “Bullion with Muscle,” offer the same benefits as bullion, but with higher profit potential.
• Coin values track gold spot price but at higher multiples; good to buy when premiums dip towards bullion

How to invest in Bullion & IGG:

• Typically 30-40% of a tangible assets portfolio
• Recommended hold 1-3 years
• Order bullion for physical delivery or store in insured facility; IGG for physical delivery.
• Recommended Buys: American Eagle Gold Bullion Coins and $20 Saint-Gaudens Double Eagle

STEP 2: Mint State Gold

Moderate investment with medium-term growth potential.

Mint State Gold Coins & Sets:

• Rare U.S. Coins Minted 1890-1933
• Higher profit potential than bullion
• Profit potential is driven by rarity and grade
• Valued as a safe haven and hedge against inflation and stock instability
• Traditionally traded at higher values when collected in sets
• Trade at metal price plus numismatic premium
• Coins are valued, graded & certified by independent authorities, based on condition, historical significance & rarity.

How to Invest in Mint State Gold:

• Typically 15-20% of a tangible assets portfolio
• Recommended hold 2-5 years
• Order coins for physical delivery
• Acquire only through a reputable numismatic specialist
• Recommended Buys: Certified MS63 or MS64 $10 Indian or $10 Liberty; begin building a 4 Piece Indian Set or 4 Piece Liberty Set.

STEP 3: Numismatic Rarities

Aggressive investment with long-term growth potential.

• High-end Rare U.S. Gold Coins & Sets
• Highest profit potential of gold assets
• Similar to fine art investments, rare coins of this category can skyrocket in value regardless of metal prices.
• Traditionally traded at higher values when collected in sets
• These are the coins & sets that savvy collectors and dealers want for themselves.
• Coins are valued, graded & certified by independent authorities, based on condition, historical significance & rarity.

How to Invest in Numismatic Rarities:

• Typically 30-40% of a tangible assets portfolio
• Recommended hold 5+ years
• Order coins for physical delivery
• Acquire only through a reputable numismatic specialist
• Recommended Buys: Call for the latest numismatic inventory and recommendations. 1-800-880-4653

Call a Blanchard Account Representative today at 1-800-880-4653 to learn more about diversification and discuss your options.