Gold prices – Is this the time to take the plunge?

by IRA Rollover in Gold, Gold IRA with Comments Off on Gold prices – Is this the time to take the plunge?

In July, gold was selling for USD 1,249. That’s nearly half the price of July 2011, but nearly twice as much as its price in October 2008.  Needless, to say, gold has a turbulent history and most indicators predict gold’s prices will trend downward.

Remember, however, that you’re investing for the long term. Gold prices have risen 3,454% since 1968 – a period that includes the mid-‘80s, when gold was at a low point while CDs paid double-digit interest and the US dollar was nearly equal to the British pound.

Of course, that staggering price increase was because of the end of the Bretton Woods monetary management system by the Nixon Administration in 1971. This meant that US dollars could no longer be directly converted to gold currency. The dollar thus became “fiat currency” and thus its value is not dependent on its related value to any other thing, including gold. Such a move had a profound effect on the economy: A 1970 dollar could buy as much as $6 does today, according to the consumer price index (CPI). That’s 600% inflation in 43 years! Look at the Gold growth story – Picture taken from Zen Gold

buy gold

“Nothing can be said to be certain except death and taxes,” Benjamin Franklin famously said. He could have included inflation if he lived with our fiat currency. The Federal Reserve has been printing trillions of dollars over the past five years, which has deflated the dollar’s purchasing power even more.

Gold has long been valued as a hedge against inflation because it has kept its worth over the long haul. Since leaving the gold standard, the US dollar and the British pound have declined in value after years of stability. Thus, it’s very likely that gold will continue to be a safe investment for you – definitely safer than the printed US dollar which will continue to decline in value as more currency is put into circulation.

Today’s favorable prices make this a great time to buy gold bullion or other gold products. You can open a precious metals IRA that includes gold, silver, platinum and/or palladium and protect your retirement funds from inflation and economic catastrophe.

Naturally the closer you are to retirement, the more cautious you should be. Be sure to consult a proven expert that combines excellent customer service with investment expertise such as Regal Assets. Check out the company’s Better Business Bureau ratings as well as its membership in reputable industry organizations such as TrustLink.

Once you’ve found a reputable investment company, ask how to protect your future by investing in gold. You’ll sleep better knowing your retirement is protected and as good as gold.

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