Gold is protection. It’s insurance against inflation, currency debasement, and global uncertainty. It’s also a great way to diversify a portfolio and it’s the ultimate in liquidity. Gold will preserve the purchasing power of your wealth through time.
But you already know this. It’s why you clicked here. You were thinking about gold’s wealth protection and insurance and you’ve considered moving some of your portfolio into gold for the peace of mind it brings.
Gold is an asset class that does not follow in line with the trajectories of the stock market. Gold tends to do the opposite. Gold has what is called a negative correlation: when the stock market goes down, gold tends to go up.
Gold will provide your portfolio as a counterbalance to a faltering stock market. It also gives you insurance when inflation erodes the value of your investments, including currency and real estate. In fact, studies have shown that even “… a 5% investment of an equity portfolio in gold has resulted in lower risk and higher return on investments.”
That’s right: Lower risk.
In general diversification will help protect you from losing too many of your assets in the next market tumble (and another is coming––bet on that). The sharp decline of stocks in the last meltdown was proof enough that putting all of your eggs in one basket is a risky strategy.
When you buy gold, the first rule of thumb is dollar cost averaging––putting a fixed amount of money towards gold every month. This is the most effective method of investing in gold. This helps not only lessen any downside but it also helps make the most of gold’s protection against inflation and financial uncertainty.
Even though gold has had some drops in price over the last number of years, historically, gold goes up over time.
It so happens that gold prices at present are low. According to the World Gold Council, they’re nearly at production threshold levels. This means that the spot price is about at what it takes to dig and process gold out of the ground.
When this happens production throughout the industry can slowdown, supplies dwindle, and the price begins to go up again with demand.
But even if prices weren’t low, gold is still a good investment. Gold is real money. Gold is a store of value and helps to offset the drops in currency, climbs of inflation, market tumbles, etc.
It’s been said that gold is no longer an optional investment. It’s a necessity for balancing and diversifying a portfolio. It’s a critically important risk management tool that can help dampen your portfolio’s overall volatility.
Most money managers advocate anywhere from 3%–10% in gold. More bullish managers recommend an allocation as high as 20%. Renowned economist and author Jim Rickards is even more liberal, he recommends having 10% of your assets in precious metals––and as much as 30% in a crisis.
Put simply, a Self-directed gold IRA is both an effective and flexible retirement account that allows you to spread your assets and maximize your returns by adding gold and other precious metals to your retirement portfolio. A gold IRA gives you more flexibility and control than your traditional retirement account meaning you can spread your assets that much further. By spreading your assets, you are reducing the risks of losing a large chunk of your asset value in one go.
If you wish to transfer from your traditional IRA or rollover a 401(k), there are rules and regulations involved in doing so. These rules must be followed to the letter and all regulations complied with for the application to be accepted. At RC Bullion our investment specialists are expert in navigating investors through the process quickly and painlessly.
Before you invest any of 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 gold investing and coins, which coins are the best investment, and investing gold in an IRA.
In our gold guide you’ll find answers to questions like:
Full of answers to these and other questions as well as many 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!
