Today’s investors recognize the value of thinking outside the box. They see opportunity in nontraditional investments. And even better, they identify the value of investing in precious metals in a gold IRA.
As you can imagine, the benefits of investing in gold and silver are numerous. Even more important, they prove that outside the box thinking creates tremendous opportunity to gain more personal wealth.
On the other hand, investing in gold and silver also protects your portfolio. Gold and silver investments can protect against the following:
- US dollar weakness
- geopolitical uncertainty
- and more
We will shed more light on the key investing benefits throughout this briefing. Please continue reading to discover the benefits of investing in gold and silver in today’s challenging economy.
3 Reasons to Invest in a Gold IRA
Not only is it wise to invest in gold, it’s even better to open a gold IRA account. Why? This investment vehicle provides exciting tax advantages like a traditional IRA. And the growth potential is enormous. Plus, you gain total control of your investments with a self-directed IRA.
With that said, the 3 top reasons to invest in a gold IRA include:
Reason #1: Gold Historically Holds Its Value
This benefit is quite obvious right off the bat. If you’re going to invest in something, you want to feel safe knowing that it won’t lose value. From a historical standpoint, gold has a tendency to maintain its value. Even better, at certain times during the economic cycle gold will even rise in value.
The beauty of owning gold is it’s an excellent way to maintain your wealth. And you can also pass on this wealth from generation to generation quite easily. This precious metal contains unique properties that make it the ideal currency. Some interesting things to note include:
- Gold does not corrode
- Gold melts over a common flame
- Gold’s color is beautiful and unique
- Gold contains heavier atoms and faster electrons allowing it to absorb light
As an investor, knowing that gold has maintained its value throughout history means it’s a safe investment. You aren’t going to invest a large portion of your savings in gold and watch your money vanish. In fact, with the political and economic strife taking place right now, your gold’s likely to go up in value.
Reason #2: Gold Rises in Value against a Weak US Dollar
Whether you know it or not, the US dollar is a very important currency around the world. In fact, it is considered a reserve currency. This means that many central banks and financial institutions around the globe maintain large quantities of the US dollar. They have it available to use for transactions, investments, and debt obligations.
With that said, between 1998 and 2008, the US dollar was very weak. During this timeframe, many investors recognized the value and security of gold. So they flocked to gold in droves which drove up the price. In fact, during this time the price of gold practically tripled in value.
Even more telling was what happened between 2008 and 2012. Gold skyrocketed at this point due to the economic uncertainty. At one point, the price of gold reached around $1900 per ounce. And this was all due to the decline of the US dollar.
Some of the reasons the US dollar declined include:
- trade deficits
- larger money supply
According to many analysts, the US dollar index is poised to see a big decline in 2020. In fact, they believe that the US dollar will decline by around 4%. This typically happens during certain market cycles. The cycle for the decline in the US dollar is in full swing right now.
As a gold IRA investor, it’s your job to take advantage of these unique opportunities. Purchasing gold now means it will begin rising in value as the US dollar continues to get weaker and weaker. All the while, gold will continue to get stronger and stronger.
Reason #3: Gold Is an Excellent Hedge against Inflation
From a historical standpoint, gold has acted as a hedge against inflation for the past 50 years or more. In fact, when the cost of living goes up, the price of gold tends to rise in tandem. When the stock market drops due to high inflation, the price of gold tends to soar at the same time.
Why does this happen? Simply put, the US dollar is a fiat currency. When inflation happens, fiat currencies begin to lose their purchasing power. Gold, on the other hand, possesses real-world value. When inflation rises, the price of gold rises right alongside it because inflation is already factored into its value.
Lastly, many people look at gold because it’s an excellent store of value. Massive inflation is on the horizon. Buying gold now means gaining value as inflation continues to rear its ugly head. Your purchasing power will diminish using the US dollar due to inflation. But you can maintain your wealth by investing in gold as a safe and valid alternative.
The best way to invest in a gold IRA is by choosing a good gold company. Check out our list of the top 10 gold companies doing business today.
3 Reasons to Buy Silver for Your Precious Metals IRA
Just like buying gold, purchasing silver definitely has its benefits as well. And silver maintains and gains value for many of the same reasons as gold. But there are also other reasons to consider investing in this exciting precious metal.
Did you know that silver also positively correlates to inflation? Besides that, it’s a great way to diversify your portfolio. It’s considered a true currency, not a fiat currency like the US dollar. And it’s also a great insurance policy to protect against economic collapse.
Other reasons to consider investing in silver for your gold IRA include:
- The value of silver is greater than gold in unstable markets
- There is minimal risk of the government confiscating silver
- It’s much more affordable than gold
- and other reasons
Today, we’ll take a closer look at three reasons why investing in silver is such an excellent idea. To learn the truth, please continue reading.
Reason #1: The Value of Silver Is Greater Than Gold in Unstable Markets
Because of the low dollar amount, many people forget that silver gains more value percentage-wise than gold in unstable markets. It’s true and we can prove it because this has happened time and time again throughout history.
We’ll use the 1970s as the perfect example. Did you know that there was an economic crisis during the 1970s? During this time, both gold and silver gained massive value. But silver was the much bigger winner of the two, although they both did quite well during the economic turmoil.
This is what happened to the value of gold and silver during the 1970s:
- The value of gold rose by 2500%
- The value of silver rose by 3800%
Clearly, if you invested the same amount of money in silver and gold, you would’ve made enormous returns buying silver.
To begin investing in silver, please check out our list of the top 10 gold IRA companies in business today.
Reason #2: There Is Minimal Risk of the Government Confiscating Silver
At different times throughout history, governments would confiscate gold from its citizens. This even happened in the United States during the Great Depression in 1933.
In fact, President Franklin D. Roosevelt signed Executive Order 6102 on April 5, 1933. This executive order entailed “forbidding the hoarding of gold coin, gold bullion, and gold certificates within the continental United States.”
So at the time, the standing US president decided to take the most valuable currency away from his country’s citizens. This is a travesty and should never have been allowed to happen. But it did and it could potentially happen again.
But it won’t happen with silver. Why? Because there isn’t a historical precedent.
No one has ever wanted to confiscate silver, even though it is true money. It just doesn’t possess the same monetary value as gold, even though it’s incredibly valuable in its own right.
Reason #3: It’s Much More Affordable than Gold
Last but not least, silver is the obvious affordable option. For some investors, buying gold will be incredibly difficult because they don’t have access disposable income. Whereas gold is currently $1581 per ounce, the silver price is only $17.75 per ounce. Obviously silver is a much more affordable option for investors from every potential economic persuasion.
You now understand the true benefits of investing in gold. But to reiterate, some of the main reasons to invest in this precious metal include:
- historically, gold holds its value
- gold rises in value against a weak US dollar
- gold is an excellent hedge against inflation
And you’ve also learned the benefits of investing in silver. To refresh your memory, here are some of those benefits again:
- silver gains greater value than gold in unstable markets
- the government potentially confiscating silver is minimal at best
- silver is more affordable than gold
Are you ready to begin investing in a gold IRA? Please look at our list of the top 10 gold IRA companies doing business today. It will help you choose the best company to meet your financial needs.