#294 Gold, Silver, and the Case for Precious Metals in a Modern Portfolio ft. Tory Aggeler of McAlvany Precious Metals
In this episode, Dr. Peter Kim sits down with Tory Aggeler of McAlvany Precious Metals to unpack why gold and silver still matter in today’s investing landscape. They explore how precious metals can protect purchasing power, diversify risk, and behave differently from traditional paper assets.
You’ll hear clear explanations around gold versus silver, inflation, and common misconceptions that trip up investors. If you’ve ever wondered whether precious metals deserve a place in your portfolio, this episode will challenge how you think about money and diversification. Tune in!
McAlvany Precious Metals brings this episode to you.
For over five decades, McAlvany Precious Metals Advisors have been guiding investors through every market cycle, offering trusted expertise in physical gold, silver, platinum, and palladium investment strategies. We are proud to represent the standard in ethics, transparency, strategy, longevity, and scope of services.
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Episode Highlights
Now, let’s look at what we discussed in this episode:
- Introducing Precious Metals as an Asset Class
- Why Investors Hold Physical Gold and Silver
- Gold, Silver, and Inflation Protection
- Portfolio Allocation and Investment Structures
- Risks, Scams, and Active Metal Strategies
Here’s a breakdown of how this episode unfolds.
Episode Breakdown
Introducing Precious Metals as an Asset Class
The conversation opens with Peter Kim framing precious metals as an often overlooked but historically significant asset class. While many modern investors focus on real estate, stocks, or businesses, Peter notes that gold and silver have played a role in wealth preservation for thousands of years. He sets the stage by acknowledging that many listeners may be curious about metals but lack foundational education on how they fit into a modern portfolio.
Tory Aggeler shares his unconventional background, transitioning from sports medicine into precious metals after selling his physical therapy practice. His entry into McAlvany Precious Metals came through a personal connection, and over 18 years, he became deeply immersed in advising clients on acquiring, storing, and managing physical metals. This background helps ground the conversation in both personal experience and long-term industry exposure.
From the outset, Tory emphasizes that precious metals are not a new or trendy investment. Instead, they represent one of the oldest asset classes in existence, second only to real estate. This historical continuity becomes a recurring theme as the discussion moves into how metals function today within diversified portfolios.
Why Investors Hold Physical Gold and Silver
Tory explains that many investors are drawn to precious metals because they exist entirely outside the paper-based financial system. Physical gold and silver remove counterparty risk, meaning ownership does not depend on banks, brokers, or digital infrastructure. This appeals to investors who value autonomy, privacy, and direct control over their assets.
Another key motivation discussed is security. Physical metals are not digitally traceable or hackable, and theft would require physical access rather than cyber intrusion. For some investors, this provides peace of mind, especially during periods of economic or political uncertainty. Tory also notes that metals can be stored in various ways, depending on personal comfort, including home safes, safe deposit boxes, or professional vaults.
Gold and silver are also differentiated by function. Tory describes gold primarily as money and a store of value, while silver behaves more like a commodity with performance characteristics. This distinction allows investors to diversify even within the precious metals category, aligning different metals with different financial objectives.
Gold, Silver, and Inflation Protection
The discussion shifts to how precious metals behave over time, particularly during inflationary periods. Tory explains that gold functions as a long-term store of value, preserving purchasing power rather than delivering rapid gains. Over the past 50 years, he notes that gold has averaged roughly 9–10% annual returns, largely offsetting the effects of inflation and currency debasement.
Silver, on the other hand, is described as a performance-driven asset. Tory highlights that silver experienced significant gains in the current cycle, dramatically outperforming expectations. Unlike gold, silver is often purchased with the intent of capital appreciation rather than monetary stability, making it more comparable to speculative assets.
Tory frames gold as a “cash alternative,” particularly relevant for investors holding large cash positions. By storing value in gold instead of depreciating currency, investors may preserve more purchasing power over time, especially when inflation remains persistent despite official reports suggesting otherwise.
Portfolio Allocation and Investment Structures
When discussing portfolio construction, Tory explains that precious metals are often underrepresented due to industry bias. Because metals are not actively managed assets, many financial advisors do not recommend them. However, he notes that mathematically, gold requires a meaningful allocation (around 10%) to function effectively as a hedge.
He references shifts among major institutions that have adjusted traditional stock-and-bond models to include gold. These changes reflect growing recognition that metals can improve portfolio stability and overall performance. Allocation levels vary depending on age, income, and risk tolerance, with older investors often holding higher percentages in gold for stability.
The conversation also clarifies how investors can hold metals. Options include personal possession, domestic vault storage, IRA-based ownership, and even international storage. Tory emphasizes the importance of separating brokerage functions from storage to reduce risk, and he explains how metals can be integrated into both qualified and non-qualified accounts.
Risks, Scams, and Active Metal Strategies
Tory identifies industry risk as one of the biggest challenges facing precious metals investors. Because the industry is largely unregulated, high premiums and misleading sales tactics are common. He warns especially about IRA-focused scams, where investors unknowingly pay excessive premiums that immediately erode account value.
The discussion then turns to McAlvany’s active approach to metals. Rather than simply buying and holding indefinitely, Tory explains how ratio trading between metals (such as gold and silver) can increase the number of ounces owned over time. These trades are infrequent and long-term in nature, often occurring only a few times over a decade.
This strategy is particularly effective within IRAs, where trades do not trigger taxable events. Tory compares the approach to compounding assets over time, similar to reinvesting gains in real estate. He closes by emphasizing that while metals experience cycles, disciplined strategy, long-term perspective, and proper education can turn precious metals into both a stabilizing and growth-oriented component of a diversified portfolio.
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