Gold’s 3,000-year performance record has prompted a number of consumers to include the precious metal in their portfolio, according to U.S. Money Reserve President Philip N. Diehl, who served as the 35th Director of the U.S. Mint.
“Gold has this long tradition, and it’s not just a long history; it’s a global history,” Diehl says. “Gold is one of the few assets that has not only held value but has also been a medium of exchange that facilitates commerce.”
The precious metal may be able to help offset losses that occur during challenging economic periods or when global conflicts arise.
“I think of gold as being wealth insurance, a form of risk protection in a portfolio — a hedge against hard times,” Diehl says. “When stocks, bonds, and other assets are falling, gold tends to hold its own or rise in value.”
In an April blog post on U.S. Money Reserve’s website, Diehl remarks that gold prices began to rally within hours of the October 7, 2023, Hamas attack on Israel — which, along with expectations for lower interest rates and strong demand from China, subsequently drove gold’s price higher.
Gold prices have reached new heights in recent months. CNBC reported in December 2023 that, with an increase in demand following the start of the Israel-Hamas war, prices for the precious metal had risen for two consecutive months, with spot gold prices ascending to $2,100 per ounce on December 3.
Prices then continued to climb in 2024, reaching new high points in March and April — rising to more than $2,400 an ounce on April 12, according to Yahoo Finance, and then on May 20 hitting the current record high of $2,450.05 an ounce, according to USA Today.
Central bank demand has also contributed to the increase in gold prices in recent years.
“Central banks were net sellers of gold until 2010, when the Great Financial Crisis caused an abrupt change in their practices,” Diehl says. “Since January 2010, central banks have added an extraordinary net 7.9 thousand metric tonnes of gold to their vaults, or 3.6% of all the gold ever mined. This has had an extraordinary impact on prices since the banks have swung from being a significant source of supply to the market to, in recent years, a huge source of demand.”
According to Diehl, the challenges involved in mining gold, which produces much of the supply introduced to the market each year, can also affect gold prices because many of the high-quality veins around the world have already been or are currently being mined.
“That means any new gold coming into the marketplace must draw a higher price to generate a return on producing it,” Diehl says. “That is contributing to a long-term increase in prices and will continue to do so because the easy gold is already out of the ground.”
Portfolio Holders’ Interest in Gold
A number of U.S. Money Reserve clients have shared the reasons why they decided to obtain physical gold assets on various online platforms.
Edward S., in one of the U.S. Money Reserve reviews on the Better Business Bureau website, says he transitioned from a “401(k) that [had] been losing money” to a gold-backed individual retirement account.
“That is making me more return on my investment,” Edward says. “I feel safe and secure.”
In another U.S. Money Reserve review shared on the Better Business Bureau website, Eric L. says the representative he spoke to from the company provided helpful background information about the market.
“I contacted U.S. Money Reserve, interested in learning about precious metals,” Eric says. “[and my Account Executive] explained how gold and silver would help anchor my portfolio against the [ups] and downs of the stock market and retirement savings plans. I appreciate his answers to many questions and the helpful information sent to my home.”
Rich D. decided to work with U.S. Money Reserve after reviewing two other providers.
“U.S. Money Reserve made me feel very confident about my choice,” he says in a review posted on the Better Business Bureau website. “As our country and the world [seem] to be in such turmoil, I knew I had to make a different choice with my savings to protect it. Gold, I found, is the way.”
In one of the U.S. Money Reserve reviews on Google, a portfolio holder named B.T. has nothing but positive things to say about his experience working with U.S. Money Reserve.
“Love, love, love these guys,” he says. “They seem to know a LOT about gold and silver ownership. Real pros and very, very helpful.”
Rita D., another portfolio holder who has worked with U.S. Money Reserve, praises the company for being attentive to her needs.
“I am extremely glad I have switched my SIMPLE [IRA] to gold!” Rita says in one of the U.S. Money Reserve reviews on the Better Business Bureau website.
A Positive Precious Metals Experience
Several U.S. Money Reserve clients specifically mention the company’s customer service approach in reviews.
Ron K., for instance, thanks the company for facilitating “a great purchase.”
“The coins were even better than described,” he says in his review. “The price was amazing, and I would definitely recommend U. S. Money Reserve to anyone.”
Dountray D., another U.S. Money Reserve client, brings up the company’s generous buyback policy in another U.S. Money Reserve review on Google.
“I love ownership of gold,” Dountray says. “And I appreciate that they’ll [take] it back.”
U.S. Money Reserve allows clients to return qualifying certified coins within 30 days of purchase or potentially sell qualifying coins back to U.S. Money Reserve at a later date.
Glenzetta S, in a U.S. Money Reserve review on the Better Business Bureau website, calls the company “very professional” and says the person she spoke with “explained the process well.”
“I recommend this company to anyone interested in gold,” she says.
You can find additional information about the precious metals market — including the potential benefits of incorporating gold into a portfolio — on U.S. Money Reserve’s website. U.S.-based Account Executives are also available to answer your questions; if you’d prefer to speak to one, you can call 1-888-306-5821.
