real gold lying on the ground

Should I Buy Gold?

December 1, 2021

When it comes to purchasing precious metals everyone has different reasons. It could be because they feel safer, it could fight inflation, or it could be a neat hobby. No matter what your reason is, we are going to provide some of our reasoning below of why we hold precious metals in our investment accounts and why we help our clients make purchases if desired.

Precious metals can act as a hedge against inflation and economic uncertainty.
Do you ever look at the price of gas or milk and remember “the good old days” when prices were lower? The impact on those prices would be inflation, or the value of your dollar decreasing. There can be many things that go into the value of a dollar, but the average inflation rate for the last 10 years has been around 1.7% annually, meaning if something cost $100 in 2011, it would cost around $118 in 2021. Now looking at the value of gold, while the value of $1 has decreased, the value of 1 ounce of gold has gone up 6.73% in the last 10 years. While there can be other investments to earn a higher return, gold at least has grown its value against the US Dollar.

Precious metals help to diversify your investments.
Just like an investor will purchase a mixture of stocks and bonds to create a well-diversified portfolio, we do that for our investments with the addition of alternative assets. One of these alternative assets are precious metals. We believe having a portion of our portfolios invested in some type of precious metals fund helps us to create an investment offering that has less risk. These assets typically have a small correlation with “the market” as well which can be ideal.

Precious metals are everywhere which can help their value.
Something people don’t know if how often precious metals are used in technology or other everyday items. Gold can easily be merged with other metals, is pliable, and conducts electricity. Gold can be found in electronics such as cell phones and computers, and it is also used inside of space travel vehicles to help shield from heat and radiation. While gold and silver are both used for jewelry, silver is also used to harness the sun’s power and is used in solar panels. Silver also has properties allowing it to be good in antibiotics and photography.

No matter how you view precious metals and their properties, First National Bank and Trust continues to see value and has these metals invested in the investment portfolios created for our clients. We also assist clients as an intermediary if they are wanting to purchase the physical metals through the American Precious Metals Exchange. If you would like to learn more of how First National Bank and Trust can help you in this area, contact a banker today or call 217.935.2148 (Clinton, IL) or 608.323.3331 (Arcadia, WI).

At First National Bank and Trust, we IGNITE PROSPERITY® by helping our clients do more with their money. Whether it’s saving a little extra cash each month or accomplishing a long-term strategy, our goal is to help you transform your financial life. Call and schedule an appointment today, one of our team members would love to help you do more with your money at FNBT. For more information visit or call 217-935-2148. #igniteprosperity

Investment products offered by First National Bank and Trust Company are: • Not a Deposit • Not FDIC Insured • Not Insured by any Federal Government Agency • Not Guaranteed by the Bank • May Go Down in Value