10 Myths About Gold and Precious Metals Busted – Unveiling the Facts

December 22, 2023


Let’s face it – there are so many questions – and so many myths about gold and other precious metals. And these myths can make it tough to figure out what’s true and what’s not.

So it’s time for us to bust the myths, clear the air, and get down to the real deal about purchasing precious metals. 

These assets have been a reliable store of value for thousands of years, but they’re often misunderstood. So, we’re going to tackle the top 10 myths head-on, breaking them down one by one. Let’s get started.

Busting Myth #1 “Isn’t Purchasing Gold and Silver Super Complicated?”

Let’s clear the air on our first myth… the idea that diving into the world of gold and silver is like trying to solve a complex puzzle. Honestly, it’s not as daunting as it sounds, especially when you’ve got the right info in your hands. Buying precious metals these days is a quick and easy process when you work with trustworth partners like the team at  American Alternative Assets.

Imagine this –  You’re eyeing some beautiful gold and silver coins or bars. Where do you start? This myth is simple to bust –  head over to a trusted dealer. They’ve got the goods, and they make the process smooth and hassle-free. And it’s not just about buying these precious metals outright with cash. There’s another smart play – using a self-directed IRA. This way, you’re not just getting your hands on physical gold and silver; you’re also tucking them into a tax-friendly retirement account. Smart and easy, right?

Purchasing precious metals is not hard. At first it seems overwhelming and complex. But when you work with a reputable team like American Alternative Assets, they will educate you on all your choices, get all of your questions answered, and hold your hand step-by-step, making it easy for you to buy precious metals and protect your wealth.

Busting Myth #2 “My Financial Advisor Never Mentioned Precious Metals”

Next let’s look at a common myth we’ve heard a lot: “My financial advisor hasn’t suggested I buy gold.” It’s a valid point, but there’s more to this story. You see, the world of financial advising isn’t always about what’s best for your portfolio. Sometimes, it’s about what’s best for the advisor’s pocket.

Here’s the inside scoop – financial advisors often earn their keep through sales commissions. The more products they sell, the thicker their wallet gets. And guess what? Shuffling your money around from one fund to another? That’s like music to their ears because it means more commission for them. 

But let’s get real about it – probably the biggest reason your financial advisor doesn’t recommend gold is because it’s just not on the menu. They don’t have the gold and silver. They don’t know how to sell it. It’s just not on the menu. It’s like trying to order a hamburger at a sushi restaurant.

But when it comes to precious metals like gold and silver, the tune changes. Why? Because if you decide to buy these metals and just hold onto them, there’s not much room for advisors to make ongoing commissions. Precious metals are typically a buy-and-hold deal, not a buy-and-sell-often game.

So this myth is busted. It’s a case where financial advisors don’t get commissions on gold, so they just don’t offer it.  They know gold and precious metals have incredible value – but if they don’t get rich selling it, they would rather ignore it.

Busting Myth #3 “Precious Metals are Just High-Stakes Gambling”

Let’s dive into another myth that often makes the rounds – the belief that buying precious metals is akin to taking a wild gamble. Now, it’s easy to see why some might think this way, especially with how the stock market can sometimes seem like a rollercoaster ride. But let’s set the record straight.

Precious metals, believe it or not, have been the bedrock of financial security for thousands of years. They aren’t some new fad or a flash in the pan. They’ve been a trusted store of value since ancient times. And when it comes to weathering economic storms, they’ve often outshone more ‘traditional’ markets. Think about those tough economic times – recessions, market crashes. In these periods, precious metals haven’t just held their own, they’ve often been the star performers.

So, why consider adding them to your portfolio? It’s not about chasing the next big thrill. It’s about protecting your wealth with a solid foundation. Precious metals bring a unique blend of stability, diversification, and growth potential, especially when other assets are taking a hit.

30 year chart of gold prices from https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart with inflation adjusted turned off


Busting Myth #4 “I Should Wait for My Family’s Approval on Precious Metals, Right?”

Let’s talk about a very common myth – waiting for the family green light before diving into precious metals. It’s natural to seek advice from loved ones, but here’s the thing – when it comes to the nitty-gritty of the gold market, even the most well-meaning family advice might miss the mark. There’s a whole world of pricing, purchasing, storage, and tax stuff that most people just don’t know anything about.

You see, the gold market is a different beast compared to your usual stocks and bonds. It dances to its own tune, swayed by global economic shifts, currency fluctuations, and even big world events. Getting a grip on these factors isn’t your everyday chat over the dinner table – it takes a bit of specialized know-how.

And let’s chat about Gold IRAs for a sec. These aren’t your run-of-the-mill retirement accounts. They’re special because they let you include gold and other precious metals in your retirement plan. But setting one up? That’s where things get a bit technical with IRS rules, storage do’s and don’ts, and tax implications. Chances are, this isn’t common knowledge in most families.

Don’t get me wrong – family input is priceless, and they’ve got your back. 

But when it comes to making decisions about something as specific as gold buying, their insights might be a tad out of date or incomplete. So, what to do? Arm yourself with knowledge. Dive into resources that shed light on the gold market. 

And hey, why not share this newfound wisdom with your family? It could open up a whole new perspective on why this kind of purchase makes sense for you.

Busting Myth #5 “Precious Metals Don’t Bring in Regular Income or dividends Like Stocks or Bonds”

Let’s tackle a common misconception head-on: the idea that precious metals can’t match up to stocks or bonds because they don’t churn out consistent cash flow or dividends. Now, it’s true that if you’re looking for regular income, precious metals play a different tune. But here’s the exciting part – they’re not about the short game. It’s their potential for significant long-term growth that makes them stand out.

Think about gold. It’s not just another metal – –  it’s a time-tested store of value. History has shown us that gold doesn’t just hold its ground over the years – it can soar, especially when the going gets tough. Remember the 2008 financial crisis? Or the stagflation back in the 1970s? During times like these, gold didn’t just survive, it thrived.

And here’s another angle to consider – inflation and market ups and downs. Precious metals, especially gold, have a knack for being a safety net when inflation hits or when stock markets get jittery. So, while you might not see regular dividends, what you’re getting is a kind of financial bodyguard, protecting your wealth when things get shaky.

Busting Myth #6 “Isn’t Storing Gold a Huge Hassle?”

Let’s break down another classic myth – the myth that storing gold is a big, complicated ordeal. The truth? It’s far simpler and more manageable than you might think. Sure, there are some costs to consider for storing and insuring your precious metals, but when you weigh these against the potential long-term benefits, they’re very reasonable.

Think about this for a second –  precious metals, especially gold, are surprisingly compact. Imagine having $100,000 worth of gold. You might picture needing a whole room to store it, right? Nope. It’s only about 3 pounds – roughly the same weight and size as about 8 smartphones or 3 standard boxes of brown sugar. That’s not much at all, making it easy to move around, stash away, or even hide in plain sight.


Now, where to keep it? Many folks find that the best spot is right in their own home. You could tuck it away in a secret spot in your closet, behind an air vent, up in the attic, or under a floorboard. And if you’re already keeping things safe and secure, like in a gun safe, why not let your gold bunk in there too?

And if you don’t have a safe we recommend getting a floor mounted heavy safe with enough cubic feet so you can also store your important paperwork, and priceless family photographs. These cost between $200 to $400. This is the ultimate way to protect your legacy and have peace of mind. 

But hey, if you’re looking to level up your security game, there’s always the option of a professional depository. This is especially handy if you’re holding your metals in a self-directed IRA, where it’s a legal requirement. These places don’t just store your gold – – they guard it, secure it, and insure it. Talk about peace of mind!

So, storing gold? It’s not a headache. Whether you keep it at home or opt for a professional depository, it’s straightforward and doable. That’s why we’re calling this myth totally busted.

Busting Myth #7 “I Can’t Include Precious Metals in My 401(k) or IRA, Right?”

Let’s bust another myth that’s out there – the belief that your 401(k) or IRA is a no-go zone for precious metals. It’s true, traditional retirement plans often stick to the usual suspects – stocks, bonds, CDs, and a variety of mutual funds. But let’s face it, limiting yourself to these options can feel like you’re missing out on some exciting opportunities. Even worse is when we see bank failures happening and political instability that we start to really worry that our nest egg is at risk. 

Enter the self-directed IRA. This isn’t your average retirement account. It’s like the Swiss Army knife of IRAs, giving you a whole world of choices, including the option to hold physical precious metals. Think of it as upgrading your retirement account to first class, where you get ALL the control and ALL the safety options.

And most people have never even heard of a self-directed IRA. How come? It’s back to the myth about financial advisors. If they aren’t getting paid to do something, they aren’t going to tell you about it. This is like a secret tool that a lot of rich people know about to buy gold, silver, art, collectables, and other things – with massive tax savings.

Meanwhile thousands of savvy customers are shifting a slice of their traditional retirement funds into a self-directed IRA. Why? Because they want in on the precious metals action. They want Inflation protection and retirement security.  It’s a smart move to diversify and get the stability that metals like gold and silver can offer, especially in a tax-advantaged way.

Busting Myth #8 “Selling Gold Must Be a Huge Hassle, Right?”

Let’s shatter a myth that might be causing you some unnecessary worry: the idea that selling gold and other precious metals is a tough task. Honestly, it’s a breeze, especially when you’re with the right folks. And here at American Alternative Assets, we’ve got your back with our 100% value buyback promise.

Here’s how it works… when you’re ready to turn your physical precious metals back into cash, we’re here to make that happen smoothly and fairly. We buy your gold back at its fair market value. That’s right – you sell us your gold at the current market rate. Every dollar is yours to keep. No tricks, no hidden fees, just the full, fair value of your physical asset.

You might be wondering, “Is this the norm in the industry?” Well, not exactly. A lot of companies out there might say they’ll buy your gold back, but then they sneak in extra percentage points or fees, taking money away from you. But that’s not how we roll. We’re all about transparency and fairness, and our buyback process reflects that. We believe in respecting and honoring the trust you place in us.

So, if you’re chatting with a gold broker, here’s a golden question to ask: “Will you buy my gold back from me?” If they say yes, dig a little deeper: “Any fees or points added when you buy it back?” If they’re tacking on extra costs, they may be scamming you, that’s your cue to walk away.

By offering a buyback at the current market rate, we ensure that our customers receive the maximum value for their gold, without any hidden costs or reductions.

So this myth is busted. When you work with American Alternative Assets selling your gold is as easy as picking up the phone and shipping the gold to us. It doesn’t get any easier.

Busting Myth #9 “The Stock Market’s Bouncing Back, So Why Bother with Gold?”

Let’s dive into a myth that’s on a lot of minds. “If the stock market is about to rebound, do I really need to purchase gold and silver?” It’s a fair question, especially when you’re eyeing those green arrows pointing up on the stock market charts. But here’s the thing – gold and silver aren’t just your rainy-day friends, they are your all-weather companions.

Take a trip back to the 2008 financial crisis with me. It was a rough time, no doubt. But as the stock market started to dust itself off and climb back up, something interesting happened with gold and silver. They didn’t just hold steady… they skyrocketed. By 2011, gold had nearly tripled in value, and silver? It was up almost six times, even as the stock market was making its comeback. 

So, it turns out, gold and silver can shine bright even when stocks are on the upswing.

And let’s not forget the inflation factor. Back in those post-crisis days, inflation was pretty tame compared to what we’re seeing now. 

Today, the government is out of control. Bank Failures. Global Wars. And we’ve hit inflation rates over 9%, and with our national debt soaring past $33 trillion, whispers of a recession are getting louder. In times like these – with inflation biting at your heels and economic uncertainty looming – gold and silver have a track record of standing strong, not just when the stock market is down, but also during its recovery phases.

Busting Myth #10 “Gold and Silver Aren’t Really Assets, Are They?”

Let’s tackle our last big myth head-on, some folks think gold and silver are just shiny trinkets, not real assets. But let’s set the record straight – they’re much more than just pretty metals. For starters, gold and silver have been the go-to store of value for thousands of years. We’re talking about assets that have stood the test of time, consistently holding their value through thick and thin.

Gold is not some new fangled crypto-something-or-other that we’re going to find out is a scam in a few months. The facts are in: Gold is the original and time tested asset protection tool. In fact the average lifespan of a S&P 500 company is less than 18 years. Where would you rather have your money?

Now, let’s talk about inflation – it’s that sneaky thief that eats away at your money’s buying power. Gold and silver are like your financial knights in shining armor, guarding your purchasing power against inflation’s onslaught. And here’s the truth… unlike stocks or bonds, they don’t dance to the same tune as the stock market. That means when the market’s doing its rollercoaster thing and on the brink of collapse, gold and silver stay more grounded, keeping your wealth safe.

But another important part of this myth is diversification. You know how putting all your eggs in one basket can be risky, right? Well, gold and silver often move differently from stocks and bonds, making them a solid choice for protecting your portfolio. They’re like Navy SEALs who keep their cool when everyone else is losing theirs, making them a smart hedge against market volatility and economic uncertainty.

Which means this myth is busted – Gold and Silver are the original “old school” asset that assure your retirement. They are the asset that stand the test of time.

So there you have it, the 10 Myths About Gold and Precious Metals – All Busted. 

Most people have a lot of misconceptions about Gold and Precious Metals, but when you get the facts, it’s clear that Precious Metals like Gold are one of the most powerful ways to have financial security and protect your wealth.

Do you want the peace of mind knowing your retirement funds are safe and secure?

Schedule a call with us now to answer any other questions you might have and to begin protecting your wealth. Do yourself and your family a favor and call us now.

American Alternative Assets is here to help you with a personalized, educational approach to wealth protection.

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