Gold has a rich and storied history throughout the world. People have used it to purchase goods and services for thousands of years. And in 2019, while the world economy teeters on a knife’s edge, precious metals IRA investments continue to remain strong.
Right now, the gold price hovers around $1500 an ounce. That’s nearly a $250 per ounce gain in less than six months. Talk about a great return, right?
You have to wonder why the value of gold is suddenly on the rise. One glaring and obvious answer is inflation. Gold and inflation tend to move in tandem. When inflation rises, so does the value of gold IRA investments and other precious metals.
You’re here to learn why investors should buy precious metals as a hedge against inflation. We’d like to share our thoughts on this topic below. So keep reading to discover the truth in plain English.
Reason #1: The Ever Expanding US Debt Crisis
Americans try their best not to think about it, but the federal government is caught between a rock and a hard place. You see, the US government has accumulated massive debt. According to an article on NPR.org, the US hasn’t been debt free since January 8, 1835. Andrew Jackson was the president at the time.
As you can imagine, it’s only gone downhill from there. Today, in the 4th quarter of 2019, the US government currently owes more than $22 trillion dollars. Wow!
Here’s the thing about massive debt and inflation. Because of deficits and a huge debt load, America will begin to see substantial inflation over the coming years. The US is already seeing it right now whether they know it or not. It’s the reason why your grocery bills are outrageously expensive and you hardly have anything to show for it.
But all hope isn’t lost. As a savvy investor, you know how to protect yourself against the inflationary beast trying to steal your money. It’s really simple. Just invest in a precious metals IRA and protect your downside.
Why is this investment vehicle a form of protection? Simply speaking, inflation and the value of gold, silver, platinum, and palladium move together. When inflation rises so does the value of gold. So get this protection plan in place and secure your financial future with a gold IRA.
Reason #2: The Ever Unpopular US Dollar
The US dollar is the most popular currency in the world, right? Not exactly. At least it isn’t anymore. In fact, nations like China and Russia are doing everything they can to minimize their dependence on US currency.
Why? As Karen Yeung puts it in the South China Morning Post, “China and Russia look to ditch dollar with new payments system in move to avoid sanctions.”
If you haven’t been paying attention, President Trump is sanction happy right now. He is imposing heavy tariffs on Chinese trade in the US. The same holds true for Russia to a degree. These countries no longer want to find themselves under the thumb of the US government. So they are making moves to rid their reliance on the US dollar.
How does this affect you financially? Well, as countries move away from the US dollar, the currency loses its value and potency. This means you’ll need to earn more dollars to pay for the same goods and services in the future.
Guess what? Gold and other precious metals IRA investments work differently. As the dollar loses value, the price of gold tends to rise across the world. That’s why countries like Russia and China are currently stockpiling tons of gold every year.
Take a hint from two of the biggest superpowers in the world. Stop relying so heavily on the devalued US dollar. Invest in a gold IRA instead to protect your downside.
Reason #3: President Trump’s Unending Trade Wars
According to some international trade and investment experts, Donald Trump’s trade wars are causing more harm than good. In the meantime, the US economy continues to suffer. The stock market can’t figure out if it should go up or down. And US citizens are flummoxed by Trump’s actions because they hurt consumers as much as our international competitors. Or at least that’s how it seems on the surface.
Here’s what we’re ultimately seeing happen in the US because of all of this tariff business:
- US consumers purchasing Chinese goods in the US will soon see higher prices. You may have noticed the prices on many goods have already risen. You can expect these prices to go higher in time as Trump imposes further tariffs.
- Right after Labor Day weekend, Trump raised existing duties on $250 billion worth of products from China to 30%. He also added an additional 5% in tariffs on another $300 billion in Chinese products.
- Many consumers are looking at these tariffs as an additional sales tax. The US government isn’t paying it. And China certainly isn’t losing any money. The US consumer is the only one who suffers.
- President Trump believes his China tariffs haven’t had an impact on US consumers. But the evidence tells a different story. Products like cell phones, video game consoles, laptops, clothing, and footwear from China all cost more now. He did it just in time for US consumers to spend more this Christmas due to rising prices from tariffs.
What does this mean for you, a US consumer? It means higher prices on an already devalued US dollar, struggling even more to buy your family Christmas presents this year, and less presents under the Christmas tree. It means you need to finally take action and do something about it.
How Investors Buy Precious Metals as a Hedge against Inflation
Are you looking to hedge your bets against inflation? Good! It’s about time.
The best way to preserve and protect your financial future is through a precious metals IRA. We’ve shared the biggest reason above. But to reiterate:
- Gold not only retains its value, it gains in value during tough economic times.
- Precious metals IRA values are strong when the US dollar is weak (like right now).
- Inflation is happening and it’s going to get worse.
- Gold also protects against deflation – another possibility.
- The world economy faces geopolitical uncertainty.
- There’s less supply and greater demand for precious metals.
See? This investment is the right move for concerned investors. Contact Regal Assets (our gold IRA broker of choice) to get started. They’ll send you a free investor’s kit and a free DVD and magazine. And for a limited time you’ll receive a free 10th anniversary commemorative silver coin. Feel free to first read how it beats the competition in our List of Top 10 Gold IRA Companies before making your decision.
Do you have any questions on why investors buy precious metals as a hedge against inflation? Ask below!
Gold IRA is the best investment that any investor can make right now and I think anyone would agree with you going by the stats you have presented up here. Invest!!! That’s the only way to get out if the issues that president trump is dipping us into and as smart people, we must make all efforts to ensure we don’t give in to it. Gold would just keep rising for now since the dollar doesn’t seem to be settled for now
Hello Shelley! Indeed, a gold IRA is the best way to shield your portfolio from inflation and I’m glad you agree. Gold will keep rising in value as the dollar loses value so it’s a great time to invest in a gold IRA. Thank you for dropping by with the comment!
The third reason actually cracked me up, lol. However i have come to realize how important it is to invest in these mentals. Lots of people are out there with enough money to invest real big in these precious metal but have little or absolutely no idea of how lucrative it is to invest in it. Coming across these post gives me clearer understanding as to why people go into investing in it. I’ll love to invest in it myself. Thanks for the information.
Hi Dane! Thank you for telling me the third reason was that amusing. Indeed, the trade wars have done its damage but smart investors can limit their exposure to its consequences by investing in a gold IRA. I do hope you get to invest in it yourself one day as well. Thank you for dropping by with the encouraging comment!
Thank you for this great article! Investing in gold is one of the best things you can do, including a precious metals Ira, because the value of the US dollar continues to go down but the value of gold and precious metals continue to go up. The value of gold has increased drastically in the last year so it is a much better investment than just saving money in the bank.
what is deflation and how does gold protect against that to? Thanks for your expertise on the subject and when I invest in a gold Ira I will definitely go to Regal Assets through your website! Have a good day.
Hello C and thank you for the comment and inquiry! Everything you said in the first paragraph is very true. Precious metals will continue to go up in value as the US dollar continues to drop in value. Deflation is the opposite of inflation in which the prices of goods drop and the value of the currency increases. It can actually be a good thing. This article was mostly about how precious metals fare well in times of inflation, as we are now, which is almost always a dreary thing. Thank you for dropping by with the encouraging comment! I’ll be glad when you do invest in a gold IRA with us! I wish you the best and many blessings on your future endeavors!
This is really getting out of hands for the dollar and there is urgent need to make the smart move of investing in gold. I just don’t seem to get the reason why people would not just take the obvious decision of making the right decision to invest in gold. Gold has been on the rise for so long and it is not declining anytime soon and as such, that is a wise investment to me. I really hope that the US economy would not break down as a result of president Trump actions. Nice post though
Hello Rodarrick! Indeed, the economy and politics are getting out of hand but its still not too late for a smart investor to invest in a gold IRA. Like you said, it is the smart way to go! I also hope the best for the US economy but we will have to see. Thank you for the compliment and the encouraging comment, Rodarrick!
I had heard that gold was the way to go when investing one’s money. And then someone advised me to invest in crypto-currency. Another person said, stick with Art, a little Picasso will never lose its value. But that is all pie in the sky for me, because I certainly do not have millions lying around in the bank.
You have given me sound advice in your article. There is certainly something about gold which has always been, and I suppose will always be a really good investment. I really did not know that it was so closely tied up to inflation. No wonder Russia and China a stocking up on all of those bars!
I want to thank you for an incredibly interesting read. It certainly has given me a lot to think about, certainly in terms of investing for the future and for me pension.
Hello Renee! We actually encourage investing in a gold IRA primarily but there is also the option of investing in cryptocurrency in a self-directed IRA. You can read about our cryptocurrency IRA options here.
The value of gold and precious metals rises as the value of the dollar decreases. Yes, that is the reason why China and Russia are stocking up on all those bars!
Thank you for the compliment! I’m glad my post was informative and thought-provoking. I wish you the best and many blessings in your future endeavors, Renee!
Your website is very informative and I like the ease and flow of it! Trump’s actions are pretty rash indeed, never know what’s going to happen next these days!
As I have seen in my everyday doings, a lot of people around me don’t know or understand what investing means for their futures. To them investing their hard earned money is the equivalent to throwing it away or spending it on unnecessary things. How does investing help the younger generations? If living paycheck to paycheck, where would an investment fit into the budget?
Most investment businesses cost money for their services and rightly so, however most people don’t have enough money to pay their bills or provide food for their families. Is there a way to reach those folks and help them understand and find where investing would fit comfortably in their very limited budgets?
Your website is very well written and intriguing! I enjoyed reading it!
Hello Manique and thank you for the encouraging comment! I do understand that investing can be a tough option for people with limited budgets. To be honest with you, even this niche targets people with big pockets that can rollover 5-7 digit figures of their retirement accounts into a gold IRA. However, it does not mean that people with a limited budget cannot invest in gold. Even a traditional or Roth IRA that holds as little as $10k can be rolled over to a precious metals IRA. A minimum of a $5k deposit is required if its by cash. I understand that’s still a lot of money for people who struggle to pay their bills and provide food for their families. Even then, it’s still not impossible to invest in precious metals. You can hold bars and coins and have them stored in the safe at a bank. That’s just one option.
Thank you for the encouraging comment, the thought-provoking questions and the compliment about my website! I am very glad you enjoyed it!