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Why Should You Invest in Gold for Retirement?

There has never been a more difficult period for Americans to manage their own personal finances than in today’s climate of instability and uncertainty. With confidence within both the domestic and foreign markets both nearing an all time low, the financial conditions for savers investors are, at present, challenging to say the least. With doubt and uncertainty, there comes volatility in markets. This may mean that even the most historically robust and reliable shares can appear to be an unattractive risk within a very short period of time. From public utilities, to established blue chip stock, the number of places that an investor can look upon as an unqualified safe haven for their personal finances is a rapidly depleting pool of options.

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Smart Investment

The underlying conditions of the market may already be proving unfavorable for the private investor, allocating their own personal finances to see them through retirement. But this has in turn been compounded by the lowering of interest rates, coupled with the policy of quantitative easing – or increasing the money supply – in order to alleviate some of the problems that are caused by a growing national debt. Both of these factors have combined in recent years to all but neutralise the option of holding cash savings as a means of funding your own retirement. Today’s pensioners have to be shrewd investors, just to maintain the wealth which they have worked hard to accrue throughout their careers. This is where the Gold IRA comes as a welcome addition to many Americans’ investment strategies. With an individual retirement account which exploits gold’s natural attributes as a store of wealth, many individuals who would once have counted themselves as savers in the classic sense of the word are finding the security and preservation of value that they used to enjoy in cash savings accounts can now be rediscovered within the precious metals market.

Investment Diversification

Gold IRAs allow for some or all of your savings to be invested into the precious metals market, whilst simultaneously enjoying the tax incentives of a standard individual retirement account. The regulations and legal compliance with which the precious metals IRAs must adhere to help to ensure that they are one of the most secure methods of placing your money into gold interests. Physical gold must be stored – by the agent, not the individual – to match the value of your investment at all times. This system prevents losses both in the physical and financial sense of the word, as an investor in a gold IRA has the peace of mind in knowing that their retirement fund is backed by a store of actual, physical gold. But Gold IRAs are an attractive proposition for purely economic reasons too. They make an ideal hedge for anyone who already holds some shares, or who is also keen to diversify an investment portfolio into stocks and bonds. Historically, gold and other precious metals have traded in opposition of the stocks and bonds markets, meaning that when stock prices fall, gold prices rise, and vice versa. This is still the case today, and this makes gold a smart and affordable strategy for minimising risk in a wider portfolio of diversified investments.

Proof Of History

Even when taking into consideration the market cycles and bear markets in precious metals which may result in periodic downwards readjustments to their values, gold has been rising steadily in value against the US dollar since 1971. As a long-term investment, where the individual is looking to hold a single position for their own retirement and as a legacy to their family, gold is one of the soundest prospects available.

 

Pavlos Demetriades

Pavlos Demetriades

4 Comments

  1. This article is very important because in this time of economic uncertainty you need options. The fact is that human nature being human nature, it’s possible for the world economy to crash and have you lose your life savings. Investing in a gold backed IRA is one way to stay safe in an uncertain time. Take advantage of it.

  2. Yes the economy is not looking very good right now. Investing in your future is at least one way that you can ensure you will have some money when you are ready to retire! Good post!

  3. I understand why you say that gold is a sound investment, but what I wonder is how much of my portfolio should be in gold? Right now I have a pretty aggressive file and would like to maybe move some of that into gold.

  4. Diversifying your portfolio is a good thing. Do you think that people might stay away from gold backed investments, just because of general risk?

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