PROTECTION THROUGH DIVERSIFICATION
One of the most compelling reasons to convert your retirement into a precious metals IRA is to diversify your retirement savings. Diversifying with precious metals is the key to protecting your investment portfolio from volatility and declining markets. Due to the global economic uncertainty markets have become more volatile and risky making precious metals an essential benefit for all investors. If all your eggs are in one basket meaning if you’re entirely investing in paper assets, like mutual funds, stocks and bonds, then you are putting your retirement at risk. Irrespective of their fluctuation precious metals can provide a safe haven protecting it from the volatility of other markets and even total loss.
The economic instability that weakens stocks and other paper investments tends to increase the value of precious metals because of the increasing demand for gold and silver as a safe haven resulting in significant gains. Many expect the value of these resources to continue to climb well into the future due to the supply, gold and silver CANNOT be reproduced becoming scarcer and more valuable. It’s no secret that gold and silver have experienced steady gains for decades and has soared to new highs over the last several years. Now with interest rates slowly on the rise, history has shown when interest rates climb so does gold. With no clear resolution to global economic problems in sight, many expect the price of gold and silver to continue increasing well into the future. This is what makes precious metals IRA such a smart option for retirement planning.
HEDGE AGAINST INFLATION
Over the years the Fed’s have printed massive amounts of paper money at an alarming rate causing the U.S Dollar to lose purchasing power and 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 because gold and silver have an inverted relationship with the U.S Dollar.
The essential goal of any investor who is planning for retirement to live tomorrow as you do today. Precious metals can help you achieve this goal because of all 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 as planned without worrying that you’re going to lose your life savings by economic factors that are completely beyond your control. Your retirement should enable you to live as you do now; and stress-free and anxiety-free about the economy or declining dollar.
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 portfolios 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 an 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 has 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.
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%.
Today, numerous factors are conspiring to create the perfect inflationary storm: quantitative easing, monetary policies, multibillion-dollar bailouts for banks, corporations and large cities in America filling bankruptcy, America is the world’s biggest debtor to China, injecting billions into the stock market and economy to keep it at float. With no confidence for the dollar, gold and other commodity prices are breaking tradition and continuing to rise even when the dollar rallies. Gold is bought and sold in U.S. dollars, so any decline in the value of the dollar causes the price of gold to rise. For now, the U.S. dollar is the world’s reserve currency: the primary medium for international transactions, the principal store of value for savings, the currency in which the worth of commodities and equities is calculated, and the currency primarily held as reserves by the world’s central banks. However, now that it has been stripped of its gold backing and drastically losing purchasing power Central Banks all around the world are purchasing gold to hedge against the U.S dollar they hold.
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.
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.
Gold is recognized around the world as the representative of true wealth standing through the 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 liquidate 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.
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.
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.
Gold= over 500%
U.S Dollar= -29%
Did your financial advisor recommend gold back then?
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%.
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.
To improve overall portfolio balance with tangible assets.
against inflation/ mass produced devaluating U.S dollar.
safeguarding from economic turmoil. For centuries only gold/silver have shown true intrinsic value assuring a measure of wealth when currencies collapse.
Gold/Silver is bought & sold 24 hours a day, 7 days a week all around the world.
Current law exempts many precious metal coins from reporting (no IRS 1099 form) during purchasing and liquidation process. No Government supervision on your silver.
With supplies evaporating at an alarming rate, silver significantly increased in value over the last decade outperformed gold. Did your financial advisor recommend gold & silver back then? More importantly these characteristic advantages listed below are creating an ideal investment window of growth opportunity.
Historically the ratio of gold to silver is 16:1, presently it is closer to 50:1. To meet the historic ratio, trading prices of silver will have to be around a whopping $100 an ounce.
Use of silver is rampant in almost every sphere of life; be it the use in solar panels, computers, cell phones, no other metal has been able to replace it. There are over 10,000 industrial application for silver. Also investors from India and China are now consuming a massive amount of silver on regular basis.
Since 2000, global mining production has experienced a steady decrease during every year due to relatively high energy prices and 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 no more than 15 years of silver reserves are left in the world. This means, 95% of the silver ever produced has already been consumed.