Reid pointed out on the Brighteon.TV program's Aug. 30 edition that most people will be deterred by the thought of investing in these precious metals. They think that only the very rich – mostly millionaires – own gold and silver and that they cannot afford it.
However, this is not really the case. Reid explained that people can use their tax dollars to acquire gold and silver.
The expert added that rich people, banks and countries own most of the physical gold and silver in the world – with a view to protecting their wealth. Ordinary people, in contrast, were taught to save their salaries. Ten percent went to savings while 15 percent went to an employee savings plan.
However, Reid remarked that those only put control of Americans' money in the hands of government and private banks. He lamented the fact that people are not being taught to invest in gold and silver.
"Gold and silver bullion is financial security," he said. "If you're saving this, who's in control? It's you." (Related: Gold demand surges in first quarter.)
People have heard of diversification of assets, including investments in stocks and bonds. Reid, however, explained that these assets do not have to be all stocks. Moreover, the stock market goes up and down in cycles.
The financial expert warned Billings that the U.S. is about to experience some of the worst times ever in the financial market, both in stock and real estate. Thus, Reid emphasized that investing in gold and silver makes sense.
Billings' guest also explained that the government's constant printing of money every single day causes people's assets stored in banks to get watered down.
"This is where inflation comes in. It's because people who are producing goods and services get to have more dollars. However, the dollar bill got diluted and you don't get that same raise," Reid said.
Writing for Newsmax, Goldco founder and CEO Trevor Gerszt mentioned that gold is a safe asset for people looking to protect their wealth in case of a future recession. He also outlined different forms of gold investments available.
One option, a gold IRA, allows people to transfer their existing assets from a 401(k), 403(b), TSP, IRA or similar retirement account, tax-free, into the gold IRA. They can use those assets to purchase and hold gold coins or bars. The physical metal in a gold IRA is securely stored in a bullion depository.
"Not everyone wants to invest in gold through a gold IRA, [and] not everyone trusts the ability of the depository to get them their gold when they want it." Gerszt said. "The appeal of being able to actually hold your physical gold coins in your hand can’t be overestimated."
Another option he put forward was actual gold coins, but these came with the issue of safe storage. Ultimately, the Goldco founder suggested whatever storage method "makes [the gold owner] feel most comfortable." He elaborated: "If the utility of having gold at home is more appealing than having it locked away at a bullion depository or a safe deposit box, then that might be the way to go."
Just like Reid, Gerszt also mentioned the importance of diversifying assets and never putting all eggs in one's basket. While a gold IRA is good, owning physical gold that can be touched and stored can be just as beneficial in protecting a person's wealth from inflation.