Most articles on this topic exist to sell you gold. This one exists to help you decide whether physical precious metals actually belong in your plan at all, and to be equally clear about when they don't.
What does physical gold actually do in a portfolio?
Physical gold offers diversification because it has historically moved somewhat independently of stocks and bonds, carries no counterparty risk since its value doesn't depend on anyone else's solvency, and is tangible, it exists outside the digital financial system, which matters to some owners and not others.
Three properties recur in nearly every serious argument for owning physical metal:
- Diversification. Gold has historically moved independently of stocks and bonds over long stretches. That doesn't mean it always goes up when they go down, it means the two aren't tightly linked, which can smooth the ride of a broader portfolio.
- No counterparty risk. A physical coin or bar is not a promise from a bank, brokerage, or issuer. Its value doesn't depend on someone else's solvency or willingness to pay. That is a genuinely rare property in modern finance.
- Tangibility and portability. Physical metal exists outside the digital financial system. For some clients, often those who lived through 2008 or 2020, that matters. For others, it's irrelevant. Both reactions are legitimate.
What doesn't physical gold do?
Physical gold doesn't produce income, no dividends, interest, or rent. It isn't free to own, since premiums, storage, and insurance are real costs. And it doesn't guarantee anything: prices fluctuate and can move sideways or down for years, so treat any promise of certainty as a sales tactic.
- It doesn't produce income. No dividends, no interest, no rent. If your plan needs to generate current income, gold is not the tool for that job.
- It isn't free to own. You pay a premium above spot when you buy. You pay storage and insurance if metal is held at a depository, or you accept the responsibility of storing and insuring it yourself. These costs are modest, but they are real, and they are laid out on our pricing page and in the guide to IRA metals storage.
- It doesn't guarantee anything. Prices fluctuate. Gold has multi-year stretches where it moves sideways or down. Anyone selling you certainty is selling you a story, not metal.
Who tends to be a good fit for physical gold?
Physical metals tend to suit people who already hold a diversified base of other assets, think in decades rather than quarters, want a portion of wealth outside the traditional financial system, understand ongoing storage costs, and are comfortable holding an asset that pays no income.
Who tends not to be a good fit for physical gold?
Physical metals tend not to suit people who need current income from every dollar they hold, expect short-term price appreciation, would put a large majority of net worth into one asset class, or are being pushed toward metals by fear-based marketing rather than a considered plan. For those readers, the honest answer may be no, or not yet.
Is Dormy the right fit for every buyer?
No. Some conversations end with a specialist telling a caller that physical metals don't fit their situation, or that a different professional should be consulted first. That standard is the reason this article can be published honestly rather than as a sales pitch.
If you want to see how we work when metals do make sense, read how the Dormy process works, or start with the questions to ask any dealer in Ten questions that end bad sales calls.
Educational content only. Dormy, Inc. does not provide investment, tax, or legal advice, consult a qualified professional about your specific circumstances.