Did you know that converting an existing retirement account into a self-directed gold IRA or gold Roth IRA is no more difficult than establishing a traditional IRA? There are no tax implications or penalties for transferring assets from one retirement to another, whether it’s an IRA or 401(k).
Given this, let’s look at the reasons why gold could be the right move for you right now.
In previous articles we’ve talked about the volatility of the market and how at present we’re inside the biggest stock bubble in history. You could move your money into safer fixed-income investments but they’re only paying miniscule returns. Gold has long been looked to as a hedge against inflation, falling currencies, and a bear stock market. Because gold is like a stabilizing force, it’ll help you retain the buying power of the portfolio that you have worked so hard to accumulate.
In 1971 the United States abandoned the gold standard and since then has seen a meteoric rise in value. Since the year 2000 alone gold prices have appreciated over 420% (at the time of this writing). Gold retains value like nothing else.
Did you also know that right now gold prices are at a four year low?
But there’s also another compelling reason why now is an exciting time for gold. If you’ve been reading the news you may’ve heard about it.
It’s China.
In a bid to improve the fortunes of its currency and influence global gold prices, China has opened up its gold market to foreign investors for the first time in history. Right now, it’s been reported that gold prices are so low that the present selling price is at a five percent discount to the production cost of gold itself. The effect on the industry will be that many mines are closing operations worldwide – mines scale back when it costs more money to extract the ore than the spot market price allows. For investors, this means that the price of gold will have to rise again.
In turn, the supplies of gold are reduced and selling activity, especially the high volume that was seen in these last three years, will slow significantly. In time, a reduction in supply forces the price to move upward again.
And it’s not just China that believes in gold – in recent years Russia and India have also taken to acquiring gold on a massive scale. They do this because they trust gold’s value as a hedge against the economic turmoil taking place throughout the world.
Because gold is a tangible, hard asset and cash isn’t. Because the U.S. dollar is shrinking as a percentage of the world’s currency supply. Because many pundits are trumpeting that the dollar’s days as the world’s premier currency are coming to an end. When compared to other world currencies, the dollar has dropped to a 15-year low. This is the result of more countries being willing to use other currencies to do business.
At RC Bullion we will work with the client to help them convert an IRA to physical gold and silver and make recommendations based on their personal goals and objectives.
But before an investor makes any decision regarding large expenditures they should first do the necessary due diligence.
They need to do their own research and find the best information available. To help the investor in this endeavor, a mini-course was developed to answer many of the questions new investors may have.
It’s entitled “The Secret to Successful Gold IRA Investing” and it’s available now as a FREE download. In this course investors will gain the knowledge that will help them avoid rookie mistakes and possibly save thousands of dollars.
Adding gold or silver to a portfolio can be a wise diversification strategy, especially considering today’s economic uncertainty. And with the price of gold currently at significant lows, there may be no better time to invest than the present. This could be a very exciting time for gold.
