Two serious economic situations around the world provided financial warnings for us this week. First there’s Asia and Europe. There was a major decline in factory activity throughout the month of June. Second, the US saw very little economic growth take place during the same timeframe.
The news coming out of Asia is particularly difficult to grasp. According to the International Monetary Fund, Asia represents more than 60% of total GDP in the world. They basically fuel the world’s global growth economic engine.
From an economic standpoint, this is fairly dire news. But it’s a strong reminder that future retirees and investors need to shore up their portfolio. The best way to do so is through gold IRA investing. It’s a great way to hedge against inflation, slow economic growth, and other geopolitical factors.
Euro Zone Economies in Jeopardy According to IMF Report
The IMF recently released their annual report. They discussed the various economies in Europe and multiple risks currently threatening them. In fact, the IMF believes that there are currently three major risks threatening the economic future of the euro zone. These risks include the following:
- Brexit
- Italy
- Trade
These threats are big and they are real. They’re so potentially devastating that the IMF is currently backing plans for more economic stimulus from the European Central Bank. In fact, the IMF projects that the European Union will suffer an output decline. They believe the 1.9% output in 2018 will decline to 1.3% in 2019. And by 2020, they hope output will recover to 1.6% but there are no guarantees.
The European Commission projects even less optimistic numbers. They expect European Union output to decline to 1.2% in 2019. And they hope for a mild 1.4% recovery by 2020.
Christine Lagarde is the current IMF managing director and future head of the European Central Bank. She says the European Union will suffer from inflation and anemic economic growth for a prolonged period.
With so much instability in the global economy, it’s time to consider investing in a precious metals IRA. Owning a physical gold IRA helps investors withstand so much unnecessary economic turmoil.
Gold protects against inflation, weak currencies, and a failing global economy. Consider investing in precious metals sooner rather than later to secure your financial future.
European Economic Stability Under Attack by Three Different Threats
According to the IMF report, there are three major problems happening in Europe all at the same time. The report concludes that the three big issues facing European economic stability include:
- global trade risks
- the British departure from the European Union creating major uncertainty
- extreme vulnerability in Italy due to massive debt load
In particular, the IMF finds the troubles with Italy very worrisome. Their major concern is that domestic banks and holdings make up the biggest portion of their sovereign debt. In recent months, their bond yields have fallen in value. But rapid market changes and market sentiment are a very concerning potentiality.
Why is this a big issue in Italy? They’ve recently began showing slowing economic growth. This can lead to sharp fiscal tightening by the Italian government. They’re also concerned that the Italian economic troubles can spill over to other euro zone countries.
This possibility was recently reported by Reuters in June. They are afraid inflation will not reach the ECB target of 2% until 2022. And the IMF feels that inflation could get even worse. They recommend putting a purchase program in place to protect against the possibility.
On a personal level, opening a gold IRA account can protect individual investors from inflation. In fact, gold tends to rise in value as the US dollar loses purchasing power. A physical gold IRA is ideal during tough and uncertain economic times.
China’s Exports Experience Sharp Drop
The IMF report also noted that a slowing economy isn’t happening in just Europe. China recently mentioned that their nation’s exports have declined by 1.3% this June when compared to a year ago. But even more telling is their plunging imports. Their imports dropped by 7.3%, which is much more than anyone ever expected.
China and the US are currently in the midst of a trade war. The results of this trade war are being felt all throughout Asia. When you couple this with an international economic slowdown, you see a dire financial picture begin to take shape.
There’s no question that the world economy will eventually rebound. But when will it happen? And how much of your retirement portfolio will be decimated by the time it happens?
Instead of praying for an unlikely outcome, you need to become a proactive investor. You need to protect your retirement funds against inflation, a slowing economy, and a weak US dollar. The best way to do so is by opening a precious metals IRA.
An Economic Contraction in Singapore Points to a Slowing Global Economy
The world looks at Singapore as a major trade barometer. And the global economy recently experienced a warning shot across the bow. Singapore’s economic contraction is a sign that the global economy is decreasing. In fact, Singapore’s GDP has dropped by 3.4% in the second quarter when compared to the first quarter. This is the biggest deterioration since 2012.
Why is this important? Singapore depends heavily on international trade. And since trade is slowing down around the world, their GDP is suffering. The country is so sensitive to trade and when it slows down their overall economy feels the pressure.
How to Hedge Your Retirement Portfolio Against a Rough Economy and Geopolitical Climate
The news hasn’t been good for most investors around the world. There really is a major economic slowdown happening. The only way to protect your retirement portfolio from its negative effects is to invest in a gold IRA.
Gold has a positive track record dating back thousands of years. When fiat currencies falter or fail, gold goes up in value. A precious metals IRA is the best way to hedge against a slowing economy, inflation, and tough geopolitical situations.
Open a physical gold IRA soon before the crap hits the fan and your retirement account loses half its value.
Thanks for informing us David,
Not just for factories, most companies are reducing productions too for June and July but I’m estimating a rise this month hopefully. Still, you’re right and we can’t keep hoping as that’s dangerous when inflation is going on for a prolonged period. Investing in precious metals is the only thing that’s certain, it’s a good thing I got into gold! 😀
Hello Riaz! Yes, at this point investing in precious metals is the only certain way to preserve your wealth from the oncoming inflation. I’m glad you are investing in gold! Thank you again for sharing your experience with us!
Thanks for this information, I’ve been watching the uncertainties in the market too. I have not starting investing, mostly because I don’t understand much of how the whole system works and I fear losing my hard earned money.
I have read a lot about investing in gold recently. Particularly I have been advised to invest in physical gold bullion, just in case. This may be a silly question to someone educated in the markets like yourself, but how does investing in a gold IRA protect you if the economic system itself goes south? Would it not be difficult to access it? And would it not also go down in value should the stock markets happen to fail?
If you could point me to any resources that could help me understand the whole concept of investing in IRAs, gold specifically, I would really appreciate it. Thanks so much!
Hello Shan! Thank you asking those questions. I’ll try to answer them simply one by one. The money system was based on the gold standard up until 1971 when Nixon abandoned it and the US decided to be in a fiat currency system (one based on quantitative easing – basically printing money from nothing and putting the country in more debt). Ever since then, gold has had an inverse relationship with the dollar and the stock market. The US falls more in debt, the Federal Reserve keeps printing more money based on debt, and the dollar loses value. As the dollar loses value, gold and precious metals rise in value and vice-versa (you can say they have an inverse relationship). It also tends to have an inverse relationship with the stock market. Gold tends to do well when the stock market doesn’t and vice-versa.
When you invest in a gold IRA, the physical gold is in the custody of the depository you choose, but you can exchange your physical gold bullion for cash and get the proceeds within 24 hours if you choose to work with our #1 rated gold IRA company, Regal Assets. Feel free to view my article on self-directed gold IRA’s here for more information. Thank you so much for the inquiry and the feedback!
This is great. I have gold and I’m glad that I do because it is always increasing in value. It is worth much more now than when I bought it and it continues to go up. I clicked on your internal links to read more. Thank you for providing internal links because I find that it helps my reading experience.
Investing in Precious Metals creates a lot of stability in your portfolio. That makes total sense to me. Those are things that have such constant value as opposed to some of the things in the stock market that fluctuate so much more. It looks like the company you suggested to get started in a gold IRA is a very good one. Thank you for the links to contact them and I will definitely bookmark this page for the future.
Hello Charles! Thank you for sharing your experience with investing in gold with us! Yes, the internal links are there to provide more information and help improve the reading experience as you have just stated. I’m glad you pointed that out! Thank you for bookmarking my page and I am glad my article was helpful to you! Thank you for dropping by with your feedback and experience!
The IMF report is disturbing on a number of different fronts. It appears that there are some choppy periods coming when it comes to investing in stocks, bonds, or mutual funds, and the report does indicate to me that now might be the time to move more of my investment portfolio into my gold IRA.
I have not seen the report nor have I heard any talk about it, so I was very glad to see your post today. I am not as much of a risk-taker these days as I was 10 years ago, as I get older I get more cautious. The move makes sense and I will get that in place at the start of the week.
How much do you recommend to move into safer accounts from a total portfolio? I mean as a percentage of total dollars invested, i.e. 20%, 30% or more. Right now I have about 10% into the gold IRA and would be willing to move at least an additional 10% over. I look forward to your thoughts, thanks ahead of time!
Hello Dave and thank you for coming back! The recommended amount to have in your portfolio is actually 5-30% and myself recommending the higher end (30%). I personally think it’s better to hedge your portfolio as much as possible into precious metals. Thank you for dropping by with your inquiry! I feel honored!
I was worried about what would happen to retirements and other investments as it does seem that the traditional IRA’s, or even the stock market might not be safest bet.
As you pointed out, mostly due to the possibility of China’s economy taking a hit and thus a domino effect on the rest of economies. Europe’s doesn’t seem much safer. As well as anything in the NYSE / NASDAQ seems extremely prone to dramatic falls with our current administration and the feds dropping rates even against many well renowned investors advising against.
Seems inetivable that the stock market will fall, as will most 401k’s and other investments in the USA, and possibly overseas due to other issues.
I actually was not even aware that I could invest into a Gold or other precious metals IRA.
I think I will most likely be transferring some of my investments into gold IRA’s for safety from the turmoil.
Great read and even better advice!
Hello Travis! I’m glad you found my article helpful and that you now know what a gold IRA is! I hope you do transfer your investments into a gold IRA soon! Thank you for dropping by!
Wow! Very interesting to know about the warnings stated by these two world powers. Though I’m yet to invest in Gold IRA yet but I’ve met with my finance personnel and they have approved it for me as a better offer to safekeep my retirements savings. I like the fact that this updates also back my investment to be a fruitful one and I’m glad concerning that. Thanks for this update
Hello RoDarrick and thank you for the encouraging comment! I’m glad your financial personnel told you the best option is to invest in a gold IRA. Thank you for dropping by!
Thanks for this interesting and useful article about the New IMF Report Shows That Now Is the Time to Hedge Your Portfolio with a Gold IRA.
You have described the current economic situation very well, and I agree that when the economy slows down, like nowadays, investing in gold could be a smart decision. But could you explain the advantage of opening gold IRA account over, buying gold chains myself from the jewellry shop?
Hello Sandy! Thank you for the feedback and the question as well. First, we must know that a gold IRA account consists of IRA-approved gold bullion and coins. Gold bullion is just a pure bar of physical gold, so whatever amount you hold will very close to the spot price of gold itself. However, gold jewelry is more expensive relative to the spot price of gold because there are designs and extra stones in there to make it a more expensive item.
To put it simply, an ounce of gold bullion will cost $1,500 – the same as the current spot price per troy ounce. That will be your investment. However, if you buy an ounce of gold in jewelry that will cost you WAY more. You’re looking at well over 5 figures. Basically, at a jewelry store, you’re NEVER buying gold at the current spot price per troy ounce. Jewelry is made to be sold for profit so you’re giving away most of your money to the jewelers. Gold bullion is pure physical gold and in a gold IRA, you buy it at the exact spot price (that’s the worldwide approved price of gold in case that wasn’t clear).
Thank you for dropping by with the question!
Hi
Thanks for your wonderful informative article about the current worldwide economic situation and where we need to invest. I agree with you and the IMF, now a worldwide economy is not stable. One of the main talks of the town issue is Brexit. As a British, I can say Brexit is not only EU and UK issue now. It affects spreading all over the world. We are watching ups and down from the last 3 years. Still, don’t what’s going to happen. And some other problems are from Italy and Trade. So all these issues creating negative effects on the worldwide economy. And I agree with the IMF, in this situation we should be very careful with our investment plans. I know personally gold IRA investment going to be very secure and profitable. Because I have involved with one of this gold investment. I will so everyone should consider this type of investment because it is the future.
Hello Nazmun! I’m glad you found my article informative and thank you for the feedback as well – It’s good to hear your personal experience as you are British yourself. Italy and the trade wars are other problems in the worldwide economy now as well. Investing in gold is the best way to secure yourself and now is really the best time to do it if you are capable of doing so. Thank you for the encouraging feedback, Nazmun!
ah, thank you so much for such great info. One wouldn’t have known about all you have written if I didn’t encounter your post. It’s looking really bad the way the economy in Europe and Asia is depleting. China’s war of trade supremacy with USA is taking a toll and investors are in trouble. I’ll definitely share this post because people need to open a gold IRA. Great informative post.
Hello Henderson! I’m glad you found my article to be helpful to your learning. Thank you for the encouraging comment!
Hallo there David,
Thanks a lot for the very thorough information on where the top countries and the global economy is standing at the moment. It was quite eye opening.
I also saw in the business news that the there are huge chances of inflation and I thought I should go online to get more information on that and advice on how to go about things to protect myself.
The gold IRA account is a really good option for me especially because it is going to keep the value of money even with the current instability of the economy.
I have also subscribed to your monthly newsletter because of the copy of how to avoid gold scams. Recently, there was a big case of some people in our country who scammed Arabian royal family with fake gold and it was such a messy scenario that I wouldn’t want to be involved in myself.
Thanks a lot for the valuable information here.
Hello Dave and thank you for the encouraging comment! I’m glad you learned much from my article. You are always welcome to read more information about gold IRA’s in my website. Thank you again for the encouragement!