Why More Investors Are Turning to Gold: Insights from Greg Allen of Allen House Metals
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Introduction: From Punchline to Portfolio Staple
For years, investing in gold was seen as a fringe move—a doomsday prepper’s strategy rather than a legitimate financial plan. Think of Ron Swanson from Parks and Recreation, burying his gold in the woods. But in today’s market, investing in physical precious metals has shifted from punchline to prudent portfolio strategy.
To unpack why this transformation has occurred, we spoke with Greg Allen, founder of Allen House Metals. His company is known for simplifying the process of buying, selling, and storing physical metals—particularly for retirement accounts like IRAs. In this in-depth conversation, Greg shares why precious metals are regaining favor, how they work within diversified portfolios, and what new investors need to know to avoid costly mistakes.
Why Investors Are Taking Precious Metals Seriously Again
Just a decade ago, only about 7–10% of accredited investors held physical gold or silver. Today, over 30% do—and they’re allocating 20–30% of their portfolios to these assets. Why?
1. A Hedge Against Inflation and the Dollar’s Decline
As Allen puts it, precious metals are a classic anti-dollar trade. When the dollar weakens, commodities like gold and silver often gain value. With inflation reducing purchasing power—$100,000 in 2020 now only buys about $70,000 worth of goods—investors are seeking assets that preserve value over time.
“Gold and silver hold their intrinsic value,” Allen says. “They rise in value with the cost of living.”
2. Portfolio Diversification and Downside Protection
Precious metals are not replacements for stocks or bonds—they’re complements. Allen emphasizes that gold and silver aren’t about chasing quick gains but preserving wealth, especially near retirement.
In fact, a CPM Group study from 1968 to 2018 showed that portfolios with 25–30% gold outperformed traditional 60/40 stock-bond portfolios, delivering an average 9.7% annual return.
The Power of Precious Metals During Rate Cuts
Allen pointed to data showing that in past interest rate cutting cycles since 2000:
- Silver returned an average of 413%
- Gold returned an average of 245%
In an era where central banks—particularly the Chinese central bank, which purchased 25% of global gold supply in 2024—are moving away from U.S. debt, this trend is especially important.
“We’re in a broader commodity boom,” Allen explains. “Central banks are buying gold at record levels.”
Physical Gold vs. Gold ETFs (GLD, SLV): What’s the Difference?
One of the most common investor questions is whether to buy physical metals or invest through exchange-traded funds (ETFs) like GLD or SLV.
Pros and Cons of ETFs:
- Pros: Liquidity, ease of access
- Cons: After 2020, GLD/SLV no longer have to be backed by physical metals, and they can be liquidated without investor approval.
“SLV underperformed physical silver by over 38% in a single year,” Allen warns. “You’re buying the idea of silver—not actual silver.”
How to Buy Physical Gold and Silver
Buying physical precious metals used to be a hassle. Allen House Metals has simplified the process with a platform that allows investors to:
- Use cash or IRAs
- Store metals in secure depositories (Dallas, Delaware, Canada)
- Buy online with credit cards (even above $75,000)
For IRAs, metals must be held by a third-party custodian. Allen’s company offers real-time account access through their proprietary platform, Vault Direct, making it as easy as logging into a Fidelity or Schwab account.
At-Home Storage or Secure Depository?
- Under $25,000: Many investors keep metals at home.
- Above $25,000: Most opt for secure depositories due to insurance and logistical concerns.
“Gold is easy to store—$50,000 fits in a sock drawer,” Allen notes. “Silver is bulkier, but we ship it fully insured via FedEx.”
Liquidity: How Do You Sell?
Unlike ETFs, physical gold comes with logistical questions. Can you sell it easily? Allen warns that many dealers don’t guarantee buybacks, leaving investors stuck.
Allen House Metals guarantees two- to three-day liquidity for stored metals and helps investors sell even metals they didn’t originally purchase through the company.
“We’ve had clients told to list $500,000 of gold on eBay,” Allen says. “That’s unacceptable.”
What Type of Gold Should You Buy?
Avoid collector and proof coins. They often come with 70–300% markups and don’t retain resale value.
Stick to:
- LBMA or COMEX-approved bullion
- 10 oz or kilo bars of gold and platinum
- 100 oz bars of silver
- American Eagles or Canadian Maple Leafs (only if buying small quantities)
“If there’s one thing to remember—don’t buy collector coins,” Allen advises. “Buy bullion. It’s the most cost-effective and liquid.”
Key Takeaways
| Topic | Summary |
|---|---|
| Inflation Hedge | Gold and silver preserve purchasing power during inflationary cycles. |
| Portfolio Role | Diversify—don’t go all in. 20–30% in metals is ideal for many. |
| Gold vs ETF | ETFs now lack full backing and underperform physical metals. |
| Buying Gold | Use reputable dealers. Avoid collectibles. Prioritize bullion. |
| Selling Gold | Ensure your dealer offers guaranteed buybacks and fast liquidity. |
| Storage Options | Choose between secure storage or home delivery based on amount. |
Final Thoughts: Gold as a Smart, Not Desperate, Investment
Gold is no longer a fringe investment or a last resort. It’s a strategic, data-backed asset class that plays a vital role in diversified portfolios, especially during uncertain economic conditions.
Greg Allen puts it best:
“This isn’t about hiding from the market—it’s about protecting yourself within it.”
Whether you’re just starting out or rebalancing your retirement strategy, precious metals deserve a second look.
About Greg Allen and Allen House Metals
Allen House Metals is a full-service precious metals dealer focused on physical gold, silver, and platinum. They specialize in IRAs, secure storage, and investor education—with an emphasis on transparency and long-term value.
Visit Allen House Metals to learn more or to schedule a consultation with a retirement metals specialist.
