By now, the value of gold as a haven for protecting capital should be no secret. Did you know that over the decade of 2005 to 2015, while the stock market was experiencing some of the greatest volatility in history, gold was being touted as the “trade of the decade.” In growth and performance, gold beat out commodities, oil, high-grade U.S. corporate bonds, U.S. Treasuries, and – most importantly – stocks.
By how much did it beat the others?
For a $100 investment, in 10 years you would’ve seen these returns:
That’s right: During a decade of record-breaking Dow highs, gold still outperformed the stock market! Also, keep in mind that from 2007 to 2010 no stock, bond, or fund made any profit whatsoever – not a one.
As the owner of a traditional or Roth IRA, you have the option of holding physical gold and silver in a retirement account. The conversion process is very straightforward. Gold, and silver, can be highly advantageous alternative assets. When you decide to buy physical gold or silver inside your IRA retirement portfolio, there are some steps that you will want to take.
When you put your IRA or 401(k) investments into a Self-directed precious metals IRA, your profits are tax-deferred back into your retirement account. There are no penalties or taxes, and – with the help of an experienced IRA specialist – the transaction can be fast and painless. In fact, the use of a Self-directed IRA is one of the most tax efficient ways to finance your gold or silver purchase.
What do investors want from their investments? Of course, security and growth but those things can never be guaranteed. There’s always an element of risk in any investment. So why not invest your money in something that’s not an investment, at least in the traditional sense? What is you could buy investment insurance, something that will give you a hedge – a fail safe – when your other investments founder?
Gold is more than an investment; it is a form of currency.
Here’s what billionaire John Paulson had to say about gold’s currency:
“As an investor, I became very concerned about having my assets denominated in U.S. dollars. So I looked for another currency in which to denominate my assets in. I feel that gold is the best currency.”
Is it any mystery why Paulson has become “a major investor in gold?” (As of a2012, Paulson’s hedge fund held a 44% stake in gold.)
As an asset, gold is in an entirely other class. Gold has no counter-party risk which means that unlike other types of asset classes, your gold is not someone else’s liability. This is why commodities correlate differently than other asset classes. Like other currencies, gold doesn’t need to do anything: It doesn’t need to generate a profit, dividend, or increase in value because productivity increases. When other assets lose value, in most cases, gold goes up. This is why gold is considered such an important hedge to protecting your investments: Gold is the most solid form of currency the world has ever known.
Don’t wait to protect yourself against uncertainties of the stock market, currencies, or other assets. If your portfolio is missing the one thing that can provide a hedge and serve you in all seasons and under most circumstances – gold, then you need to act now!
Before you do anything with your money, make sure to do your homework and get the best possible 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 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!
