If you’re looking into diversifying your retirement portfolio by investing in a gold IRA, here is a basic background on the precious metals market as to why it is a wise way to move forward with the diversification of your portfolio in to gold and/or silver investments for retirement.
Is Investing in a Gold IRA for Retirement a Good Idea Right Now?
We definitely say yes if providing for your and your loved one’s future is a major concern. With that said, the world economy is anything but stable. No one can predict with certainty if the economy will swing back to its pre recession glory or if it would tank following a spree of avoidable global events. The banking crisis along with the real estate bubble has severely affected the confidence of investors. The exit of Britain from European Union, or Brexit as it’s commonly called, sent shock waves on both sides of the pond and beyond.
The chaos of the quite frankly highly questionable 2020 United States presidential election in conjunction with the ongoing negative consequences of the COVID-19 pandemic worldwide are also expected to continue to bring in a new spree of uncertainties into 2021 and most likely beyond.
When the economy is unpredictable, when your assets can get devalued randomly and significantly, when you cannot find safe havens to invest in and when you need to secure your financial future, you should seriously consider investing in a gold IRA, or silver IRA, to protect your financial health.
Investing in Gold and Silver for Retirement
Precious metals investing is not complicated. It allows you to invest as little or as much you want. You can set aside just a few hundred every month to invest in gold and/or silver. You can set aside the same, more or less to invest in silver. You can treat these investments as small and affordable monthly expenses, just as you would approach your mortgage or any loan repayment.
Benefits of Investing in Gold and Silver
Having established the ease and flexibility of precious metals investing, let us focus on why you should strongly consider investing in gold and silver.
Your investments in stocks can get easily devalued should the markets crash. Post Brexit, many investors were poorer by hundreds of thousands and some lost millions. The world economy is entirely based on currencies today and we all know how volatile foreign exchange is.
The pound dived after Britain voted out of European Union. China is devaluing its currency. It is at one of the lowest in the last two decades vis-à-vis the dollar. Many emerging economies in the world would try to devalue their currency to remain competitive and although that’s beneficial in the short term (in the long term this devaluation will catch up with them and won’t be good) for the currencies in developed nations, the devaluing will lead to more jobs and industries being moved to developing countries.
With stagnant real estate prices, limited growth in the US and the UK, prevailing recession in some European countries and the vulnerability of stocks, foreign exchange and other assets that can be liquidated, it is not just safe but also rewarding to invest in gold and silver. Should the paper currencies get devalued or become practically worthless, the prices of precious metals would be subjected to generous appreciation. You would not only have your investment protected then but also reap more than generous returns.
Why Investing in Gold is Important
- Ernst & Young study shows 3 out 5 people will run out of money in retirement.
- Gold & silver have always returned as money over a 2,000 year history.
- Every 38 years on average since 1671, paper money dies and gold & silver take precedence again.
- We’ve been off the US Dollar being backed by gold since 1971 (45 YEARS)
- $1 in 1971 is worth just $0.03 now.
- The average retirement length is 18 years.
- Central Banks continue to print money and devalue wealth.
- Our paper money today is backed by nothing tangible.
- Paper Money vs gold cycle shows on average all paper money systems die every 38 years. We’re currently 44 years into the current form of US Dollar.
- Every time paper money drops in value, gold sky rockets in value.
- People need to make about 10% a year minimum to counteract the effects of inflation on their wealth.
- Banks are no longer secure. In the United States, for example, their FDIC deposit insurer only has $25 billion of funds to cover $9,283 billion of deposits. That’s only 0.2% of all the money someone holds in the bank covered by insurance.
About Fear of Loss and Lack of Understanding
The reason why many people don’t invest in gold is because they don’t understand how it would all pan out. Some people feel gold is expensive and hence out of their league.
Some investors think the appreciation is too little and too late, unlike stocks which fluctuate much more and more frequently to make room for operating profits. People don’t invest in silver because many don’t consider it to be precious enough. There is considerable lack of understanding when it comes to precious metals investing. Investing in commodities has been largely confined to oil.
Fear of loss, in other words risking the invested amount, is a primary reason people discard the reasons of why one must invest in gold and silver. The fear of loss clearly emanates from the lack of understanding. Both gold and silver have enjoyed steady prices and have quietly undergone appreciation, not just over the years but over the decades. This has especially been the case since the Financial Crisis of 2008.
However, it is also true that the appreciation of silver has surpassed that of gold. By some accounts, you should invest in silver for higher returns relative to gold. Invest in gold and you can have the value of your asset get doubled in a few years.
On the other hand, though this is not a concrete guarantee as no one can predict the true future, it is very likely that silver could once again shatter the all-time record high of $49.45 per troy ounce that it set on January 18, 1980; potentially even surpassing the $100 mark by multiple factors in the months and years ahead. This means that with silver you stand the chance of quadrupling or quintupling your investment.
Thusly, your best opportunity for profiting from precious metals in these volatile economic times is to own physical gold and/or silver as part of your investment portfolio.
Economic Uncertainty is a Reality, Not Hype or Hearsay
In the last fifty years, the value of dollar has been depleted by a hundred times. What you could get at three cents four decades back now costs more than a dollar. In the next decade and a few, the value of the dollar will tumble further.
Remember, despite economic uncertainties and recessions, the United States has not undergone any astonishing inflation over the recent years. The next cycle of inflation is severely overdue. While real estate prices have gone up, costs of living have not really been affected that much since the turn of the century, or millennium.
By investing in a gold IRA, or silver IRA, this will help hedge your portfolio against the next phase of inflation that will severely depreciate the present value of major currencies. This may not affect foreign exchange but will affect costs of living here in the states, thereby affecting your assets and retirement funds and their value at that time.
The stock markets and real estate, anyone who has invested in currency based assets or cash based savings are the most vulnerable. Imagine what would happen if a hundred thousand in savings turn out to be less than thirty thousand in value. You wouldn’t even get to pay off your mortgage well in time if that is why you are saving for a particular war chest to be used before retirement.
The only way to counter the economic uncertainties and the impending crash of worldwide currency based economies we have is to invest in gold or to invest in silver, or both. Indulge in actual gold IRA investing. Have the actual metals such as physical gold, silver, platinum, and palladium, and not just exchange traded funds or any derivative of that sort.
You would invest today using the present value of the dollar and you would be generating returns in the prevailing value of the dollar or any other currency when you choose to liquidate your precious metals assets. You don’t have to worry about currency devaluation, inflation or any such adverse economic consequences.
Get started today. Compare the best gold IRA companies absolutely free with confidence to get started on the road to securing your retirement with a safe and secure gold IRA from a highly trusted industry leader of your choice.
You’ll be glad you did.