First, what is a Physical Gold IRA and why should you care?
A Traditional IRA is an Individual Retirement Accounts that is backed by paper investments. These investments can include stocks, bonds, Certificates of Deposit (CDs), mutual funds, Exchange-traded Funds (ETFs), and even real estate (under certain rules).
One thing it can’t have is gold. For that you’ll need what is called a specialized Traditional IRA also know as a Self-directed IRA. That difference is important.
Without the Self-directed designation, your IRA can ONLY hold paper investments. The problem with paper-backed investments, and this includes cash, is that they’re subject to the whims and misdeeds of financial institutions, governments, and markets.
Let’s refresh our memories with why this is a problem with a little recent history:
Remember the financial crisis of 2008 when retirement accounts lost more than 25 percent of their value? Many investors like you who could ill afford it, lost from anywhere from tens of thousands to hundreds of thousands of dollars. Or what about the rollercoaster ride of summer 2011? Did your home lose value or your mortgage go “underwater?” Have you lost buying power due to inflation?
Unlike paper dollars, gold is good money. Due to its scarcity and intrinsic value, gold is valuable. Compare this to stocks, bonds, and other high risk assets, the value of gold peaks during an economic crash. Gold has what is called a “negative” correlation, this means its price tends to go up when the economy goes down. In this way gold thrives on economic turmoil. It’s for this reason that gold is generally considered recession-proof.
If you believe that the dollar is in for a long-term surge and stock market will continue at record highs, then by all means go with paper.
But let’s look at that in the context of history: Going back to the 100 plus years since the Central Bank was established, the dollar has lost 95 percent of its value. So, any hopes for a long range surge of the dollar will have to compete against the evidence history. The truth is, the dollar doesn’t represent any sort of true value. Instead, it is an entirely faith-based system.
As for the stock market, look around. Do some research and see that many experts are seeing the end to this bubble and soon. Some are claiming the market could plunge by as much as 50 percent!
Billionaires believe in gold. Rock star investors like George Soros and John Paulson, hedge fund managers like Louis Moore Bacon and Julian Robertson, and Bond King Bill Gross have not only urged others to buy into gold but also hold large stores themselves. Even The Oracle of Omaha, Warren Buffett, has said this about gold: “Gold is a way of going long on fear, and it has been a pretty good way…” Buffett has famously rebuffed gold investing in the past because he says it doesn’t produce anything tangible like, say, farmland or oil companies. Despite this attitude, Mr. Buffett would later go on to purchase 130 million ounces of silver! Even Buffett could no longer deny the power of precious metals.
So, why are even skeptics like Warren Buffett getting into metals? George Soros has said that the recent recession was in many ways worse than the Great Depression. Newsweek quoted Soros as saying “riots in the streets are inevitable.” Hyperbole perhaps, but you get the idea. While most pundits and analysts don’t think pandemonium is “inevitable,” the safe haven status of precious metals like gold and silver can give investors piece of mind against the possibility.
Don’t wait to protect yourself against financial uncertainties. Is your portfolio missing the one thing that can provide a hedge and serve you in all seasons and under most circumstances – silver or other precious metals?
Before you do anything with your money make sure to do your homework and get the best information available. You can begin by downloading a FREE mini-course that will help answer many of your questions about silver and gold investing and coins.
Full of important money saving investment tips, this guide has helped teach many of our clients to invest like experts. If you’d like to save precious time and possibly thousands of dollars you need to read this today!