Disclosure: This is not a financial advice article. Refer to a professional for financial advice.
For millionaires and those aspiring to join their ranks, it’s all about protecting wealth rather than taking risks with investments. But the strategies employed by these savvy individuals can be applied just as well – if not better – for everyday people.From finding ways to combat inflation, investing in cutting-edge technology without too much risk attached, and generating safe returns on existing capital, this article will offer some of the best advice when it comes to growing your financial security in 2024.
Feel free to use the quick links in the TOC list to jump straight to any section:
You Can Rely On Hard Assets
Inflation is the big bad guy when it comes to wealth erosion, but even legendary billionaire and investor Ray Dalio has suggested that emerging-market currencies might be one of the few avenues for preserving your financial future.
He notes Western nations have increasingly adopted similar strategies surrounding asset preservation over the next 10 years – relying heavily on hard assets and traditional investment principles.
So if you want to keep your money intact well into 2030, best stay agile! Let’s take a closer look at how.
Smart Investors Are Diversifying Their Portfolios
Strategic portfolio diversification is an essential tool for any smart investor. By spreading their funds across the full spectrum of markets, they can protect themselves against a dramatic collapse in one particular sector.
Recent talk of an ‘everything bubble’ should be taken with a grain of salt – as multiple asset classes like stocks, bonds, crypto, and more rarely all crash at once. While precious metals have traditionally been seen as safe havens from market shocks – cryptocurrencies are set to become even better hedges due to their often inverse correlation with other sectors.
Portfolio management strategies require savvy movements between asset classes in order to maximize gains and minimize losses. Economies experience both good times – when stocks flourish with economic growth & certainty – as well as bad, characterized by higher interest rates that actually depress further expansion.
Fiat currencies from different nations possess unique characteristics but are all subject to erosion over time. However, dependable investing can help protect against local inflation while retaining liquidity.
Billionaires Who Are Investing In Gold
Today, many of the world’s wealthiest individuals, such as Ray Dalio, Warren Buffet, Lord Jacob Rothschild, Sam Zell, and Naguib Sawiris, recognize the benefits of holding physical gold as part of their investment portfolios.
“If the world does well, gold will be fine. If the world doesn’t do well, gold will also do fine…but a lot of other things could collapse.” — American billionaire businessman Thomas Kaplan
Warren Buffet
Known as the “Oracle of Omaha,” Warren Buffett is one of the most successful investors in history. He is the chairman and largest shareholder of Berkshire Hathaway, which owns over 60 companies, including Geico, Duracell, and Dairy Queen.
With a current net worth of $80 billion, he ranks 4th on Forbes’ list of the richest people in the world in 2020. In August, he invested $564 million in Barrick Gold, the world’s largest mining company, sending shockwaves across Wall Street.
Ray Dalio
Ray Dalio
buys gold as a store of wealth and diversification. When someone with a net worth of $18.7 billion praises the power of gold, you might want to pay attention.
Ray Dalio, the founder of the world’s biggest hedge fund, believes gold is attractive as a store of wealth and a means of portfolio diversification.
Ray Dalio means, “In a world of ongoing pressure for policymakers across the globe to print and spend, zero interest rates, tectonic shifts in where global power lies, and conflict, gold has a unique role in protecting portfolios. It’s wise to hold some of what central banks can’t create more of.“
Lord Jacob Rothschild
Lord Jacob Rothschild
buys gold to help preserve generational wealth. Lord Jacob famously declared that the Rothschild family was dumping the U.S. dollar and replacing it with other currencies, as well as gold.
Changes in yields and monetary policy prompted that shift. The Rothschilds have been involved in the mining, refining, and trading of gold since the early 1800s.
Naguib Sawiris
Naguib Sawiris
buys gold as a means of crisis protection. Naguib Sawiris, an Egyptian billionaire worth about $2.9 billion, put half of his net worth in gold in mid-2018 in an effort to protect himself from a potential stock market crash and to take advantage of gold’s potential upside.
Sam Zell
In 1968, real estate mogul Sam Zell started Equity Group Investments, which is a major participant today in industries such as energy, logistics, and healthcare. He chairs five public companies, including one of the largest real estate investment trusts in the US. According to Forbes, Zell’s net worth is $4.8 billion.
When Bloomberg asked Mr Zell why he invested in gold, he commented that gold is a good hedge and…“Supply is shrinking, and that is going to have a positive impact on the price.”
>>>Request your Free Gold and Gold IRA Guide today!
How Do Millionaires Protect Their Money?
Now that you know 5 well-known billionaires who own gold, let’s take a look at how they protect their wealth next.
Tip 1: Buy Cheap Risk Assets Like Stocks And Crypto
With the stock market soaring to unprecedented levels, everyone can agree that it’s overvalued. But what about crypto?
Bitcoin is currently trading at $67K, but where should its fair price be – an optimistic $100K or a more conservative estimate of just $2K?
It may take some time for an agreement to come on this topic given all the debate around crypto. And yet there are still plenty of new projects coming onto our radar screens with exciting potentials….if only we could find one worthy enough to fulfill those promises and make them a reality.
Crypto And Stocks Remain Speculative Investments
For every ‘Apple’ of the investment world, there are seemingly thousands of projects that can’t quite get off the ground. That’s why stocks and crypto remain speculative investments – no one really knows what will shoot up in price or stay afloat until it actually happens.
But those who make wise decisions regarding these assets often attract a cult following as they seem to possess some kind of predictive power for spotting winners-in-waiting.
For instance, Bitcoin might have earned its reputation as an increasingly valuable store of wealth, but with highly volatile price fluctuations between $16,000 and $72,000 in just the last year alone – there’s no telling when it’ll take a dive again.
Even so, recent history shows us that prices skyrocketed from just over 2K to nearly 20K before plummeting down under 4K.
Bottom line: if you’re planning on investing or trading Bitcoin make sure to keep in mind that its value is far from set in stone. Also, work with a reputable digital asset company like BitIRA or My Digital Money that can help answer all your questions and to avoid taking uninformative decisions.
Tip 2: Invest In Commodities
As we watch the global economy shift, it’s clear that commodities are becoming increasingly attractive investments.
Russia is leading to way with its attempts to resist Western sanctions and create a BRICS currency backed by oil or gold – both of which they’ve already taken steps towards tying their own currency as well. It looks like an age-old approach may yet be poised for a resurgence.
Oil continues on its resurgence as one of the major players in global commodities. With supplies potentially coming into question and Russia being a top producer of many industrial metals, countries are starting to understand that they may no longer be able to rely on former partners – a mixture of scarcity-protectionism tension is abuzz.
To add to this complex equation, there’s also an increasing revulsion towards things you can print (like money). It looks like it might be time to rethink where we source our goods from.
Commodities Can Help Secure And Grow Your Wealth
In addition, the multi-trillion dollar stimulus may have done little to help, proving that central banks can inflate the amount of their currency faster than you’d think. This means bondholders don’t have much reason for optimism; after all, a country’s bonds are only as solid and secure as its economy allows them to be – not exactly comforting.
Overall, commodities are a great way to secure and potentially grow your wealth, with steel and lumber being particularly solid bets. But investing can be tricky – you’ll need some savvy strategies rather than simply hoarding barrels of oil.
Fortunately, there are plenty of different ways to invest in commodities so whatever level you’re starting from, they could still provide the return on investment that you desire.
Tip #3: Create An Inflation Hedge With Precious Metals
Investing in precious metals is often seen as the wisest way to preserve your wealth. Gold, for example, has consistently demonstrated a strong upward price trend over time – making it an ideal asset class for those looking to protect their well-earned capital from inflationary pressure.
Gold is currently trading at $2,330. In addition, here is the gold price history from 1966 to 2023:
While currencies lose value over time, gold has proven itself to be a reliable source of steady growth. In fact, it’s significantly outperformed the S&P 500 – the go-to benchmark for successful investments – over the past two decades. So, if you’re looking at putting your money somewhere secure with long-term potential gains, don’t overlook gold as an option in your portfolio.
In addition, each of the four precious metals fulfills a role, almost acting as a kind of market on its own. These are:
- Gold protects wealth and tracks inflation while guarding against uncertainty
- Silver acts similarly to gold, but is far cheaper and has a greater upside partly due to its industrial element
- Platinum acts similarly to silver, but with an extremely localized supply and tracking changes in the automotive industry
- Palladium acts similarly to platinum
In summary, investment in precious metals may be difficult to pass up for those looking to maintain their wealth. In the long run, it’s expected that metals like platinum will perform well even if they experience temporary drops over a decade or so – like when regulations pushed its price all the way down to $980 before rebounding back up recently.
Again, always remember to diversify! Investing in physical gold, as with any investment, involves risks. Market fluctuations can impact the price, and physical gold requires secure storage and insurance, leading to additional costs.
Ray Dalio, founder of Bridgewater Associates, emphasizes that “Diversification is crucial in investing. While gold is a smart choice in a balanced portfolio, it’s important not to over-concentrate in any single asset.”
>>>Request your Free Gold and Gold IRA Guide today!
Tip 4: Start a Precious Metals IRA
Retirement can often get put on the back burner, and even those who plan ahead typically trust an IRA or employer-sponsored plan without giving it much thought. But many of these plans are drafted by big firms like Fidelity and Blackrock with a cookie-cutter approach – usually utilizing the same conservative 60/40 asset allocation ratio.
So there’s potential to improve your retirement funds through alternative allocations that may include crypto assets or precious metals. It pays off, in the long run, to make sure you’re fully informed before deciding where best to invest for your future.
A gold IRA is almost like the standard to which retirement plans should adhere. It’s made up entirely of precious metals, for the most part, but the investment choices can vary greatly. This leaves ample room for additional returns past just the metals’ base gains.
The metals in it, unlike the derivatives that comprise a standard employer-sponsored plan or IRA you might come across, are physical. You can choose to liquidate the IRA and receive the metals whenever you want, a penalty notwithstanding.
What A Gold IRA Can Help You With
Opening up a gold IRA account has many benefits, and can, for example, help you:
- Hedge against a weaker dollar and increasing inflation
- Limit exposure to economic uncertainty
- Mitigate the effects of geopolitical instability
- Diminish negative fallout from the coronavirus economic crisis
- Diversify your portfolio
- Take real ownership of your financial future
When opening an account with this type of self-directed IRA, your precious metals are held in a safe depository. That means YOU have control over what goes into and out of the portfolio.
On top of that, security coverage comes with lifetime customer support when working with a trusted gold IRA company. This could be compared to having your own personal portfolio manager at hand whenever needed!
How’s that for taking after the wealthy?
Overall, feeling secure in your retirement savings will give you the freedom to explore other investment opportunities to see if they can bring any extra growth. No matter how volatile the markets are, you don’t need to worry about having enough for retirement – that security is guaranteed with precious metals!
Related: How To Start A Gold IRA In 3 Simple Steps
But what gold IRA company should I choose? We’re glad you asked!
Top 8+ Precious Metals Companies
To help you identify the best option to protect and grow your wealth today, we have reviewed and rated the top 8+ precious metals companies in the industry for regular purchases and gold IRAs.
We have rated each company on a variety of factors including BBB/BCA ratings and complaints, customer reviews, annual fees, precious metals selection, storage options, promotions, and buy-back programs. You can request a free guide/kit from each company by clicking on the “GET FREE KIT!” button to the right.
>
| Company | Reviews | Annual Fees | Investment Minimums (IRA) | Preferred Custodian | Free Gold Kit |
 |
 |
$0 | $25,000 | Equity Trust |  |
 |
 |
$0 | $50,000 | Equity Trust | |
 |
 |
$180 | $10,000 | Equity Trust | |
 |
|
$100 | $10,000 | Equity Trust | |
 |
 |
$80 | $2,000 | Equity Trust | |
 |
 |
$180 | $10,000 | Equity Trust | |
 |
|
$0 | $10,000 | Entrust | |
 |
 |
$0 | $10,000 | Equity Trust | |
Choosing any of these industry-leading precious metals companies will ensure a safe investment. Lastly, when it’s time to liquidate your metals, they all offer buy-back programs.
You can read more about each precious metals company in our 8+ Best Gold IRA Companies Of 2024 (Reviewed & Rated) article. Or, request this Free Wealth Protection Guide from our #1 recommended gold IRA company.
