As years go by, most people are now seeing and becoming more aware of the importance of investing in gold in order for them to protect their wealth. Often times, when the tides are good and the economy is doing well, people tend to invest more in stocks and in bonds as they believe it is a more viable option for them to make more profit.
However, when the economy is plummeting and the tides have now turned and recession starts hitting, most people then turn to the safe haven which is having a gold investment.
Why Is It Beneficial To Have An Investment In Gold?
You need to understand that the more delicate the economy becomes, then the more enticing gold looks to potential investors. As much as at first, it may look like you are spending quite the huge amount with regard to you investing in gold, it is essential to see it as an investment for the protection of wealth.
The best thing about gold is the fact that it is not affected by changes in the economy, in any industry or any business as it has proven itself to increase in value over time as history records it.
You may then end up asking the question “Are Gold IRAs safe?” The answer would be yes as you may add it to your portfolio given that you are able to take into consideration the various gold IRA investing options that suit you best. Then you are able to better know which Gold IRA investment works for you.
The fact of the matter is that gold is able to overpower currencies as well. In various parts of the world specifically the Eastern parts such as China and India, they are slowly increasing their gold reserves and reducing their dependency on the famed US dollar.
In actual sense, the two countries have ended up investing more in gold like crazy to the extent that they have been in a position to be ranked as having the highest consumption of gold purchase in the world over the years.
In addition, you need to see that according to statistics, the value of gold has never at one point fallen as compared to other currencies. In actual sense, when other currencies start falling, the gold currency starts shooting up as a result. Hence, making this the perfect way in which you may end up buying gold in order for them to protect your wealth. This then makes having a gold IRA investment one of the smartest decisions.
Another benefit of having gold IRA investments is it has an intrinsic value. There is no other way of getting gold except through mining as it cannot be a manufactured commodity making it very scarce. As compared to other currency that may easily be printed at will and no value is attached to them except trust.
Gold vs Paper Currencies
One of the biggest enemies that paper currencies face is inflation which is ironical due to the continual printing of money. This is the main reason as to why various states such as India and China among other multi-millionaires and billionaires are trading in dollars for gold all over the world.
We live in a time when most governments have lost control over printing presses. As an individual, you need to understand that the purchasing power of gold will always be higher than that of paper money.
Planning Your Gold Purchase
In as much as investing in gold seems like the best thing, inexperienced investors need to tread carefully and do enough research before they take the plunge and invest in gold.
Then you may ask, are gold IRAs safe? Yes and no…
NO-this is because there are many unscrupulous dealers everywhere that sell fakes and forged coins and gold bars.
YES – if you end up doing proper research on what type of gold is the safest to purchase, and you only deal with reputable and trustworthy sources.
You need to understand that when you decide to have a gold IRA investment, it needs to be a long-term as there are no quick gains with this investment. You also need to understand that in as much as the price and the value of gold over the years has continually been rising, there are times there has been medium and downturns along the way. However, if you are in it for the short term then you might win, or you might lose.
When you are in it for the long term, however, you have a higher capability of winning. The longer the gold is retained, then the more the value is increased. Given that it is a very rare, portable and indestructible metal.
Your investment portfolio should always be a combination of high risk better returns and low risk and less return type of investments. Gold is a good investment to help in creating diversification while at the same time maintaining stability. Hence, in the event that the market ends up plummeting then you are able to have the gold in your portfolio to act as a hedge against the various setbacks that you may end up encountering. This is mainly due to the fact that gold has a negative correlation with the other assets such as bonds, treasury bills and stocks. This then makes gold a solid measure of safety. Hence, are gold IRAs safe? Then the answer would be yes.
In addition, you need to understand that gold is easily liquidated as compared to other investments such as stocks, bonds, and real estate. Having gold in your portfolio will help you have quick access to cash in the event that you end up needing it at any time. You are normally advised to get gold coins as they are easy to sell than a bar of gold. The coins may also be sold to various buyers as compared to the gold bar.
By including your gold in the IRA, this then creates leverage for you to protect your wealth. This is because it tends to reduce the volatility of your retirement portfolio. Hence, you could consider taking into consideration some
Gold IRA investing options and get the best Gold IRA investment plan for themselves and your future.
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4 Comments on “Gold IRA Investment – A Wise Choice?”
Great breakdown of investing in gold. You mention the portfolio ought to be diversified, how much would you allocate to a gold investment?
Hi Vivek, thank you for stopping by and taking the time to comment.
I would say diversify your portfolio and allocate 5%-10% of your wealth into Gold Investment.
As the saying goes, “Don’t put all your eggs in one basket!”
The history is a great teacher. And this one stands gold price. I think the gold is an eternal investment and there is no mistake in a rollover.
Great post! Thank you.
Hi Ivan, thank you for stopping by and taking the time to comment.
I am happy you found the article helpful.
We also feel Gold IRA Rollover is a good idea!