Does your financial advisor ...

LochNESS

know anything about PMs?

I know one who had never heard of APMEX before we met. I know another who is knowledgable about bullion as a commodity in the market, but not much else in terms of miners and spot price and gold/silver trends history.

Should I be concerned about this with my financial advisor? or do these topics fall outside of their realm of expertise?

mrpaseo

<< <i>know anything about PMs?

I know one who had never heard of APMEX before we met. I know another who is knowledgable about bullion as a commodity in the market, but not much else in terms of miners and spot price and gold/silver trends history.

Should I be concerned about this with my financial advisor? or do these topics fall outside of their realm of expertise? >>



Interesting question, I'm sure there will be many responses to this thread but here is my two cents.

Some financial advisors are paid to push certain types of investments, some push what they know. I think it's hard to believe that an advisor will learn enough about each of us to know what each of us are comfortable investing in.

I do my own research and investing.

guitarwes

I wish I HAD enough finances to actually HAVE a financial advisor.....

cohodk

Speaking for myself as a former financial advisor the answer was yes. However many of my colleagues were clueless. But you must remember that was in the 90s when gold did nothing but go down so there was no reason to know anything about gold.

tneig

I have found that the best way to discover the knowledge of another person regarding the PM arena is to let them talk, and even run on. This is true for your friend or next door neighbor, or a financial ad-visor. If you start debating or discussing with come-backs too soon, they may tend to be more careful of what they say. I'd rather get a full profile of their thoughts, style, bias, and how pushy they are by listening.

In this case, to be especially careful about their words and bias as it comes to PMs. They may be excellent in other areas with all due respect and that is great.

You likely know more about PM investing "choices" overall. And they may be better at helping to determining your investment percentage, risk profile, funding methods, tax liabilities and such.

Then again you may find one with good experience in the field. Where so I'd be even more careful.

streeter

Apmex doesn't pay a commission.

Every 'financial advisor' I have known started out by cold calling after college. Then they get a few initials after their name. Oh boy!

My financial adviser was my father. He beat this advice into my head,
1. Learn to save money, it's going to be a cold winter.
2. Deals find you when you have money.
3. Never sell to the appraiser.
4. Sell when you have two buyers.
5. There will always be another deal.
6. Never rent.
7. If it's to good to be true, it isn't.



I could never get comfortable with someone giving advice when that persons objective was to skim my assets.

57loaded

Yes but he's never been hot or even lukewarm.

LochNESS

Some great comments! Thanks y'all.

I used to feel the same way about commissions and advisors and skimming the portfolio. I also used to be anti- "let's hire someone to do a job or household chore that I can do for free" ... But over the years I've realized that paying $20-50 for yard service allows me to spend that time doing other work / earning other money (hopefully more).
I view the commission of the fin. advisor as me paying him for his vast knowledge so I don't have to spend my time boning up on the market and/or keeping a watchful eye. I just don't have time for it on a daily or even weekly basis. I listen to NPR Marketplace (radio program) and occasionally I'll shoot an email over but mostly I have peace of mind knowing that he's out there tending to my money while I'm over here focused on earning it. And I have seen enough evidence and had enough conversations with him to know that his knowledge vastly exceeds mine when it comes to stocks, mutual funds, bonds, insurance (yes I have some) and even wills, trusts, etc. He even helps a great deal with my health insurance which doesn't earn him a single red cent.

My only regret is that he is a self-admitted novice with metals and I like owning what I have. He seems anti- "let's buy gold and put into an IRA" and maybe he's right but he couldn't really tell me why. So I just stack at home and hope I'm making the right moves.

Baley

Some of my funds are professionally managed, and some are self-managed. The latter is the portion contains the metals.

Spooly

Financial Advisor....... don't waste your money.

DoubleEagle59

My opinion is most financial advisers know very little about PM's.

LochNESS

<< <i>My opinion is most financial advisers know very little about PM's. >>


Most folks here seem to agree. So why the heck is that?
Maybe it's not that different than knowing nothing about corn or oil ... just another commodity?

johnny9434

<< <i>I wish I HAD enough finances to actually HAVE a financial advisor..... >>

whats an financial advisor?

AUandAG

I had a Merrill Lynch adviser years ago. He knew nothing of metals. He's no longer in the business either.

Against his advice I bought silver at $4.50 or so and gold at $350 or so for about a year instead of stocks.

Stocks tanked and the metals almost paid off my mortgage. Put me sitting pretty in retirement.

bob

PS: I am not advising anyone of anything!

LochNESS

<< <i>PS: I am not advising anyone of anything! >>


Darn, I was going to blame you for the next Great Recession!

UNLVino

The majority of so called Financial Advisors are salesmen pure and simple. They sell their companies products and advise you on either:

A. The ones they just learned about at the latest seminar
B. the ones their company or manager have a quota to fill on
C. And most likely the ones that pay the highest commissions.

Your wants / needs play a minute if any part. Now some fee based advisors are worthy and those I know do understand metals.

Have a nice day.

ricko

Professional advice can be helpful, certainly in areas one is unfamiliar with. Choosing an adviser, however, is risky. Many are, as described above, neophytes or 'salesmen'.....When it comes to personal wealth, caution, research and vigilance are the watchwords. Cheers, RickO

Yukoncornelius1

I think the main reason why a finacial advisor doesn't want you investing any funds in PM's is he doesn't make any commision if you do that.

LochNESS

If you read the OP, I never said he didn't want me investing in PMs. He totally supports me buying PMs, as long as I tell him how much I buy, so he can balance the portfolio.
What I did say is that he isn't knowledgable about them.

I know a few things about coins I don't collect because I like coins, and it's my business to know coins. If my business was finance, I'd learn about all kinds not simply the stuff my firm sells.

fishcooker

I would have concerns about any advisor who lacks knowledge about something, despite its 13 year bull market. However, it sounds like in this case you have personal experience that shows this person to be effective and successful with the tools at hand. That's really what its all about.