Steady recovery of the US economy, end of Federal QE, the fall in crude prices, and other positive domestic and global developments indicate that 2017 will probably be a good year for the US and global economy. Prospects of prolonged economic growth and stability will result in fall in demand for gold as investors and traders shift to riskier but more lucrative investment options like equity, bonds, and real estate. In such a scenario, it is important to analyze the pros and cons of opting for a gold IRA and investing in gold in 2017.
Why buy gold when the stock market may offer better returns? Buying gold in 2017 as a short-term speculative transaction may not offer high returns. However, buying gold bullion and coins at a low price can serve as an excellent hedge for your long-term retirement plans.
Diversifying your investments and combining gold investing with other options is the best way to safeguard your retirement investments from global recessions and equity market crashes. In such a scenario, following Warren Buffet’s mantra and buying gold when everybody is selling it can prove to be a very sensible long-term investment strategy.
Gold investment in 2017 can also help you protect your investment from potential risks that continue to plague the global economy. End of US QE has been followed by a massive bond purchase program in Japan with talk of the European Central Bank joining the QE bandwagon.
Emerging markets continue to lag and there are growing concerns about the impact of a slowdown in the China on the global economy. In such a scenario, your decision to invest in gold in 2017 may prove to be a very smart investment decision if the global economy sputters and causes the US economy to slow down again.
Thirdly, investing your retirement funds in gold is a smart move considering the fact that this precious metal has an intrinsic value that appreciates over time. Bonds, shares, and other investments derive their value from other external factors. A company’s share depends on the performance of the company, impact of the sector on the economy, and many other factors. Gold, on the other hand, has an intrinsic value and purchasing power that rarely diminishes over time. This makes gold suitable for low-risk high-safety investments like retirement accounts. The last thing you want is to end up with an inadequate corpus at the end of your productive life. Gold investments ensure this risk is, more or less, eliminated.
Opting for a gold IRA rollover is the smartest way to include precious metals in your long-term retirement planning. Finding answers to questions like how to buy gold bars and how to invest in gold will become a lot easier if you setup a gold IRA account with a reputed service provider.
You can continue allocating a fixed sum annually towards purchase of bullion bars and coins and keep track of gold investment news to make adjustments to your investment strategy as and when required. A significant advantage of opting for a gold IRA is that you are not precluded from including other high-risk options like equity or real estate in your overall retirement planning.
Originally posted 2017-01-31 16:10:48.