Market Insights

5 Misconceptions About Gold

Gold Alliance disclaimer
There are many misconceptions about gold investing.

The internet is awash with information about gold.  

Some of it true and some of it, well…  

And for anyone considering gold for the first time, it’s often challenging to sort fact from fiction. So today, let’s cut through the noise and clear up 5 of the most common misconceptions floating around the web.  

Starting with: 

Misconception #1: Physical gold doesn’t generate income  

This is true. Gold doesn’t generate cash flow or bear interest.  

But this misses the point of gold.  

Gold doesn’t bear interest because it doesn’t need to bear interest to grow in value. The dollar doesn’t bear interest either. Just like gold. But physical gold has no counterparty risk, and it serves best as a hedge against the dollar and a way to protect your purchasing power.  

When the dollar’s purchasing power goes down, gold’s price goes up. Gold will also appreciate as production becomes more efficient and manufacturers lower product prices in dollar-denominated terms. If the dollar is gaining strength, however, the price of gold will go down. They are like a seesaw.  

The question is… do you believe in the dollar’s purchasing power over the long term with the Fed’s printing presses working overtime?  

As we detailed recently in Gold’s Big Picture, gold’s price has trended in one overarching direction since Nixon decoupled the dollar from gold in 1971…  

Up, 4,850%. 

Traditional investments will come and go in our lifetime. 

Meanwhile, gold has outlasted entire civilizations. And this is why thousands of Americans trust gold to help limit their exposure to economic turbulence, preserve capital and secure their long-term financial future with confidence. 

Misconception #2: It’s easy for thieves to steal your gold 

When you purchase physical precious metals in a Gold IRA, you can enjoy peace of mind knowing your metals are safe in an IRS-approved depository of your choice.  

These depositories offer optimal storage conditions. Their security features exceed banking industry standards. And they are fully insured. 

If you buy gold for direct delivery outside of a Gold IRA, you can also choose to store your metals at home or in your bank’s safety deposit box. But because of the industry-leading security and service that depositories offer, we always suggest a depository over a bank’s safety deposit box.  

Misconception #3: If inflation has peaked, the price of gold will go down 

Many investors trust gold as a hedge against inflation.  

So, if inflation has peaked, will the price of gold go down?  

If history tells us anything, it may do the opposite. 

During the sky-high inflation of the 1970s, the price of gold soared over 2,180%. Since June 2022, we’ve seen inflation slowly decline — meanwhile, the price of gold has increased 11%. 

Misconception #4: I can’t purchase physical gold via my 401(k) or IRA 

Most traditional retirement plans, such as 401(k)s and IRAs, only allow you to invest in traditional assets like stocks, bonds, mutual funds and other paper assets. 

But the IRS makes one exception: If you set up a self-directed IRA, you are in the driver’s seat. With this unique account, you can help diversify your savings with a much broader range of investments, including real estate, commodities and physical precious metals. And your new self-directed IRA has the same tax advantages as your existing retirement account.  

That’s why we’re seeing thousands of Americans roll over a part of their savings into a self-directed Gold IRA. Especially in today’s turbulent economy. 

Misconception #5: Purchasing gold is complicated, slow and difficult 

Every week, our Gold Specialists help folks who believe investing in gold is a daunting process. But in truth, the process is simple, fast and easy: 

Option A: Gold IRA Purchase 

  1. Open an IRA account 
  2. Transfer funds and select your precious metals 
  3. We ship your metals to a safe depository account in your name 

Option B: Direct Purchase 

  1. Order your metals and send payment 
  2. We ship your metals directly to you, discretely and fully insured 


If you’d like to learn more about diversifying with gold, click here to get a FREE Gold Information Kit or dial toll-free 888-529-0399 now to have all your questions answered by a patient and experienced Gold Specialist. There’s no cost and no obligation.