A pension plan is a retirement plan that requires an employer to make contributions to a pool of funds set aside for a worker’s future benefit. The pool of funds is invested on the employee’s behalf, and the earnings on the investments generate income to the worker upon retirement. The problem is when the stock market crashes, so do these types of accounts because they are all invested in stocks and bonds, mutual funds and equities.
By adding physical gold to these accounts, we have found that not only does it protect the funds from loss, it also reverses the catastrophic effect of the market crash.
Gold is a unique asset: highly liquid, yet scarce; it’s a luxury good as much as an investment. Gold is no one’s liability and carries no counterparty risk. As such, it can play a fundamental role in an institutional investment portfolio.
Gold acts as a diversifier and a vehicle to mitigate losses in times of market stress. It can serve as a hedge against inflation and currency risk.
Banks can protect employees’ retirement plans from loss with physical gold without changing the plan.
In a financial crisis, employees suffer the most after the smoke clears. We prevent that from happening.
Gold offers downside protection and positive risk management in the wake of extreme market stress.
Gold is a diversifier to mitigate loss in times of market stress. It serves as a hedge against inflation and currency risk.