Investing with an IRA gold is Your Hedge Against Stock Market Crash and Inflation.
What is a Gold IRA Investment? Why not keep your money in a diverse bundle of stocks and bonds or ETFs?
First, let us explain what gold means as an investment. Unlike equity investments such stocks and bonds, gold is an IRA purchase. The owner of gold has a unique physical product, something with actual value. On the other hand, equity investments mean that the investor holds a share of the stock company that issued it. Stockholders can make money when their stock is used to increase profits and improve the business standing. This increase in profits results in a higher demand for the stock, which causes a rise in its price. Precious metal investors make more when demand for precious metals increases. This causes the “spot price” of metals increase.
Gold outperforms Stock Market
The stock market has outperformed precious-metal investments in the past. They were traditionally considered a hedge against inflation and risk, rather than a profit-seeking asset. Over the past 12 years, this has changed dramatically: silver and gold have outperformed the Dow Jones Industrial Average. In times of economic uncertainty gold has always been an investment standard for safety (after U.S. Treasury bonds). Its value often follows economic and market movements. In times of inflation, gold has been a safe haven because it holds its value better that currency-backed assets which can drop in value and climb in price.
Keep Yourself Safe from the Next Market Crash
Why should you invest your money in a self managed gold IRA, or Roth IRA gold investment? This was evident in 2008 when gold prices ranged from $720 per ounce to nearly $980 per ounce. The gold price soared as the stock market collapsed and the economy plunged further into recession. Gold is an excellent investment in times of anxiety when investors need to keep their cash away from a volatile stock market.
Gold Is Like Wealth Insurance
For the investments that you make today, don’t lose purchasing power tomorrow. The Fed prints more dollars every day which means your savings dollars are worth less. Gold IRA investing can protect you against inflation.
The gold is a hedge against stock market volatility. Stocks could fall 60% in the wake of the stock market bubbles of 2007 and 1999.
You can diversify your savings by investing in gold. Not just a collection of paper assets such stocks, bonds, mutual funds, or other assets; gold allows you to diversify by hard, tangible assets.
There is tremendous growth potential in gold. Some experts predict that the value of gold and silver will rise significantly as there is more demand than supply.