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!