Your retirement should not be a time for you to worry. Quite the opposite. Safety is something many people who are approaching retirement seek out in their last years of their working life. But can you really invest in anything these days and safely just forget about it with no worries what so ever? For many people that the answer is a definite yes, and the reason being is that they have funded a gold backed IRA.
What makes a precious metal IRA fund different from the rest? Well instead of being backed by equities which are based upon fiat currencies a gold backed IRA fund is based upon precious metals which is a physical commodity. That difference is huge. A physical commodity regardless of who is the reserve currency will hold its value, it is just how these commodities have worked for several thousand years.
Can you make a profit with a gold backed IRA?
But are gold backed IRA’s actually profitable? If you have several decades left in your retirement you could experience a huge increase in your net worth if you invest in gold right now. Gold has historically been on the rise, or upward trend, for a while. Even when the stock market takes a dip it is clear that Gold wins out in the end. After all, one of the principles of making money is to actually keep the money you have, you don’t want to lose money.
You are not restricted to just invest in gold with a precious metal IRA. In fact you can invest in silver, gold, and platinum, so you can safely diversify your portfolio and take advantage of any supply/demand issues that may arise in the future. By diversifying your investments you increase the safety net of your retirement account, there are lots of chances that gold, silver,and other precious metals will experience significant price swings in the future.
Everything is relative when it comes to price!
However these price swings will be relative to their historical value over time. So for instance if gold goes up 400 dollars per year it could come down another 200 dollars the following year. The sooner you start investing however the more likelihood you will lock in a better average price making price swings moot. In this case the early bird truly does get the worm, just imagine if you had invested in gold in 1997 back when these gold backed IRA funds were created.
The reasons that the United States came off of the gold standard is beyond the scope of this article. Suffice it to say that just about every fiat currency, or a currency based upon a country’s credit worthiness, has failed. In fact this type of currency was started by the Chinese well over 1 thousand years ago, and yes that failed after some time.
Could the U.S. Dollar go back to the gold standard?
Perhaps if this should happen again and to the United States dollar the U.S. treasury department may go back to the gold standard. If that should happen there is no telling what would happen to these IRA funds but one would logically conclude that you should get fair market value for any money invested in these accounts. Of course this may be the worst case scenario but it is still worth understanding that this could happen, no matter how unlikely.
Numerous countries are seeking gold as a safe haven!
If you examine the number of countries that are investing in solid precious metal assets you can see that many economists are anticipating an upcoming financial disaster. When this may occur no one can tell you, if someone is predicting a specific date or a specific event that will trigger this then I would be wary of any future advice given by that person or company.
India, China, and most European Union nations have paid a lot of money to build up their reserve of gold, silver, and platinum. As well as some countries such as Germany have announced that they will no longer be circulating their gold coins on the open market because they want to keep it as a reserve. Being fiscally conservative in these times is prudent and wise, and after following what other noted economists are doing it is clear that this move is a good way to hedge against any disaster.
Now many people love drama, but the stock market, the commodity market, and the rest of the economy simply does not like it. When you have a lot of drama, such as what is happening in the political arena in the United States, then it is logical to seek the safe confines of precious metals. Just because you can earn a high return of money for a short period of time does not mean anything if you cannot secure those profits for the future.
There is no rule stating you cannot have both an equity retirement fund and a gold backed IRA fund. In fact you can have an unlimited number of retirement funds open at any one time. What you are restricted in doing is putting so much money each year into each fund. Those rules are easily explained by any trained custodian.
Now your particular financial situation may be different than everyone else’s in fact it may be so different that it may be best to seek out the advice of a trained financial adviser. However, when you do so it is also equally important to seek out the advice of someone who is not making a commission off of whatever you should invest in, that way you will have unbiased advice.