Why Open a Precious Metals IRA
Protection Through Diversification
One of the most compelling reasons to convert your retirement into a precious metals IRA is to diversify your retirement savings. Most experts agree that diversifying your retirement savings is key to protecting it from from volatility and declining markets. Precious metals have historically shown a low correlation with most asset classes likely to be adversely effected by declining markets.
During times of global economic uncertainty markets become more volatile and riskier making the historically low correlation of precious metals to these factors an essential benefit for all investors.
If all your eggs are in one basket -- meaning if you’re entirely invested in one asset class, then you're putting your retirement at risk. Irrespective of their fluctuation, precious metals can help offset the risk of other asset classes with respect to volatility and even total loss.
Growth Potential
When economic instability weakens other asset classes, precious metals tend to increase in value because of the increasing demand for gold and silver. Gold and silver have historically shown a low correlation with most other asset classes resulting in potentially significant gains. Many expect the value of these resources to continue to climb well into the future due to finite supply -- gold and silver CANNOT be reproduced, thus they're becoming scarcer and more valuable.
It’s no secret that gold and silver have experienced steady gains for decades and soared to new highs over the last, several years. Now with interest rates slowly on the rise, history has shown that when interest rates climb, gold follows. With no clear resolution to global economic instability in sight, many expect the price of gold and silver to continue increasing well into the future. This is what makes a precious metals IRA such a smart option for retirement planning.
Hedge Against Inflation
Over the years, the Fed has printed massive amounts of paper money at an alarming rate causing the U.S Dollar to lose purchasing power with no signs of stopping anytime soon. Gold and silver tend to hold value above inflation for the simple reason that the Fed can’t simply make more gold and silver on demand, like they do with paper currency. Having investments in precious metals can help you maintain your purchasing power over the long-term because gold and silver tend to have an inverted relationship with the U.S Dollar.
Peace of Mind
The essential goal of any investor who is planning long-term for retirement is to live tomorrow as you do today. Precious metals can help you achieve this goal in the long-term because of the unique financial benefits listed above. With a gold-backed IRA, you can have peace of mind knowing that your investments can help you preserve your lifestyle and achieve your retirement goals over the long-term as planned, without worrying that you're going to lose your savings due to economic factors beyond your control. Your retirement should enable you to live as you do now -- and keep you stress-free and anxiety-free about the economy or a declining dollar.
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Why Gold
Diversification
Investment advisors recognize that diversification of investments can help reduce volatility and improve overall portfolio performance. In these worrying times you need to protect your portfolio by diversifying with investments that are not closely correlated to one another. Most investors have paper-backed assets in their portfolio such as stocks, bonds and mutual funds that are closely correlated with one another. Gold is the perfect diversifier for a paper asset portfolio because it has a inverse relationship with stocks and bonds meaning if stocks go down gold goes up. Gold reacts to a different set of market conditions such as safe haven demand in times of political and economic uncertainty and have unique properties because they can be used as currency. Gold has maintained its value over the long-term serving as a hedge against the erosion of the purchasing power of money, known as currency devaluation. Insure your wealth with Gold.
Hedge
Many financial experts believe gold to be the ultimate hedge against inflation. The most consistent factor determining the price of gold has been inflation – as inflation goes up, the price of gold generally goes up along with it. The more the Federal Reserve prints money, the less our dollar is worth. Since Nixon took the dollar off the gold standard U.S. inflation reached its highest level in 1974, 1975, 1979, 1980 & 1981. During those years interest rates hit an all time high, the average real return on stocks, as measured by the Dow, was-12.33%; the average real return on gold was 130.4%.
Tax Advantage
Any acquisition of gold/silver over $1500 in California you do not have to pay taxes on. You can hold your metals “year after year” and you are only taxed when you liquidate.
Privacy
Current law exempts many precious metal coins from reporting (no IRS 1099 form) during purchasing and liquidation process. No Government supervision on your gold. These non-reportable coins have also been exempt from past government recalls. Privately held gold is how many wealthy families have passed down their savings to future generations.
Liquidation
Gold is recognized around the world as the representative of true wealth standing through test of times. Gold and silver are among the most liquid assets to have, some banks now include gold in the list of liquid assets. You can liquidated through Monetary Gold, any gold dealer, coin shop, exchange or precious metals firm around the world. Gold is bought & sold 24 hours a day, 7 days a week.
Safe Haven
For Centuries gold has provided intrinsic value assuring a measure of wealth for future generations, surviving fiat currencies, inflation, deflation, financial crises and natural calamities. In today’s economy, many investment strategies possess risks, owning only paper assets such as stocks and bonds and mutual funds alone can be vulnerable to your financial future, Gold can countercyclical to traditional asset classes in your portfolio, especially in unsettled times. It has proven to be a safe haven for many investors, institutions and central banks. Commonly called the “crisis commodity” because it tends to outperform other investments during periods of political or economic tension. The very same factors that cause other investments to suffer will traditionally cause the price of gold to rise – which is why having some of your assets allocated to gold investments makes such a stable, robust portfolio. As national debts rise, banks fail, and currencies around the world begin to lose value, governments rescue themselves with the printing press, making their currency worth less and gold worth more. Gold has always risen the most when confidence in government is at its lowest.
Growth Potential
The world has spent the last decade getting deeper into financial crises, while gold has increased from the low $255.95 to a high of $1821.75 – a staggering increase of over 530%. No investment can guarantee you profit, but the simple fact is while the stock market has aggressively fluctuated, gold has grown steadily year after year.
Since 2000
Gold= over 500%
U.S Dollar= -29%
Did your financial advisor recommend gold back then?
Increasing Demand
The demand for gold is everywhere, nowhere more than governments and Central Banks all around the world. National Central banks bought over 456 tons of gold in 2012. Eastern Central banks have purchased a staggering 580 tons of physical gold in June 2013, this means Eastern Central Banks just purchased a stunning 25% of the worlds annual gold mine production being the largest purchaser of gold during a 7 trading day period in history. All this to hedge against the billions of dollars in paper assets it holds but no longer trusts. From 2002 to 2012 global demand has increased by 600%. Since most spending on gold is discretionary, its market structure is far more diverse than most commodities. About 50% is in the Jewelry sector; 38% comes from investments, while technological applications in industry, medicine and dentistry account for about 12%.
Decreasing Supply
Due to the high demand, supplies are dramatically decreasing. In the last 10 years, gold related exploration efforts have increased despite the global mining production has decreased. Many of the world large deposits and the high-grade gold have been discovered. Much of the gold ore that is ‘easy’ to mine are now empty, leaving only the deeper ore that is much more expensive to dig, mine and process. Add to this gold use in jewelry, medicine, machinery and other applications, all of which mean that supply is decreasing drastically.
Why Silver
Diversification
Much like gold, silver tends to improve overall portfolio balance since it is a tangible asset. Silver is also a hybrid metal that's driven by market forces as well as industrial demand. Its value is based upon its availability and accessibility in the open market. As a result, supply & demand, production levels, industrial applications, investment climate, and economic conditions all have an impact on spot silver pricing as well as its long-term investment outlook. All of these factors make it a strong portfolio diversifier.
Hedge
Silver has show to be a strong inflation hedge particularly in the wake of post-pandemic money printing and the systematic devaluation of the U.S dollar. Silver has historically made solid gains when inflation spikes. With greater industrial and electronic demand pressures, silver actually tends to rise more than gold during marked, inflationary periods.
Safe Haven
Silver is prized for its many uses in industry, electronics, jewelry, tableware, dentistry, photography, optics and renewable energy. Like gold, silver has intrinsic value assuring a measure of wealth when currencies devalue. It has long been considered to have a low correlation to mayhem and economic risk. Silver rallies on the same market forces that drive gold but it costs considerably less per ounce.
Liquidation
Silver can be bought & sold 24 hours a day, 7 days a week all around the world.
Privacy
Current law exempts many silver coins from requiring us to collect your personal information and report it to the government (no IRS 1099 form). So, there's no federal oversight of your silver.
Growth Potential
With supplies evaporating and exploding global demand, silver significantly increased in value over the last decade and actually outperformed gold. It is poised for a value surge and a breakout that could extend for decades. Did your financial expert recommend silver back then? More importantly silver's unique characteristic advantages are creating an ideal investment window of growth opportunity.
Undervalued
Historically the ratio of gold to silver is 16:1, presently it is closer to 78:1. To meet the historic ratio, trading prices of silver will have to be around a whopping $110 an ounce.
Demand
Use of silver is rampant in almost every sphere of life. The U.S. Mint has actually had to halt production of silver coins in the past due to a shortage of silver inventory. Silver is not only an extremely versatile industrial metal with high conductivity, but it is the metal of renewable energy since it is found in solar panels, wind turbines, hydroelectric power, the generators of ocean energy, geothermal electrical production and is even used, along with palladium, to purify hydrogen fuel.
Supply
Since 2000, silver mining production has experienced a steady decrease due to high energy prices and surging labor costs. Silver prices are currently below mining costs! As per the silver consumption rates available today, in 2014 according to the U.S Geological Survey, there is far less silver in the earth than gold with less than 15 years of silver reserves left in the world. This means, 95% of the silver ever produced has already been consumed.