Editor’s Note: This is an updated version of a story that originally published on September 22, 2023.
New York
CNN
—
On Tuesday, Sen. Bob Menendez was found guilty on 16 counts including bribery, extortion, wire fraud, obstruction of justice, and acting as a foreign agent.
A key piece of evidence prosecutors presented to jurors during the nearly seven-week-long trial was the gold bars the FBI seized from the senator’s home, which he and his wife allegedly received in exchange for acting on behalf of foreign government officials and business people. Menendez maintains his innocence and plans to appeal the verdict, he told reporters outside the Manhattan courtroom on Tuesday.
The discovery that Menendez owned a hoard of gold bars stunned many people. Who even owns physical bars of gold these days?
Actually, a lot of people. The demand for gold has been rising as individuals seek ways to protect their investments against inflation. Gold, being a tangible asset with limited supply, offers stability in uncertain times.
Increased Interest in Gold Ownership
The string of bank failures, such as the demise of Silicon Valley Bank, has led to a surge in interest among people to own physical gold. These events have made individuals question the safety of their money in traditional banking systems, prompting them to turn to tangible assets like gold for security.
Storage and Investment Choices
Jonathan Rose, CEO of Genesis Gold Group, mentioned that many clients choose to physically store the gold they purchase, sometimes burying it in the ground or storing it in secure safes at home. While some opt for insurance or safe deposit boxes at banks, most prefer having direct access to their gold for added peace of mind.
Investing in gold ETFs provides exposure to the market, but physical ownership allows individuals to have control over their assets without being dependent on market fluctuations.
Individuals looking to include IRS-approved physical gold in their tax-deferred investment accounts must comply with specific regulations, requiring them to store the gold in a bank or with a non-bank trustee for legal purposes.
