Is Investing in Gold Right for You?

by IRA Rollover in Gold Investing, Gold IRA with Comments Off on Is Investing in Gold Right for You?

The public has been bombarded in the past few years with ads about investing in gold—on the television, in print, on the radio and even on billboards.  They encourage gold investment and at the same time they advertise that they give the highest rates if you want to sell your gold jewelry, coins, or ingots.  If you haven’t yet bought gold or other precious metals you might be wondering if this is a passing fad, the sign of economic panic, or just another campaign to encourage hysteria and thus enrich the coffers of dealers in gold.  As you watch the economy getting worse and gold prices rise higher you might wonder if gold investing could protect your savings.

Just half the world’s population is responsible for 50% of the gold sales in 2011.  India and China account for half of all gold sales in the second quarter of that year and it makes you wonder if they know something that Americans don’t see.   These cultures look at gold not only as a source of wealth but as an expression of love, the perfect gift, and as a status symbol.  India prizes gold above all other material wealth and even the poor save what they can to buy miniscule pieces of it.  It’s not at all unusual to see nearly everyone on any random street decked in gold.  But how does this apply to the average investor and is it a good idea to get involved in gold investing?

Gold is The Most Stable Commodity in any Economy

If you look at economies that have both thrived and fallen in the past few thousand years you’ll see that gold (and other precious metals) have been the standard of wealth.  Whenever people could, they bought gold whether it was small coins or large bars.  Gold was used to back and stabilize currency.  When governments removed the requirement that gold back that currency, you got inflation, deflation, and hyperinflation.

Myanmar (formerly Burma) is an excellent example of paper based currency.  In 1948 its government began printing money that was not backed by any commodity and inflation soared.  A cup of rice cost more cash than a person could comfortably carry.  Since most currency is no longer backed by a commodity such as gold, that scenario may rear its ugly head again in the near future.

Those who hold gold will have buying power in even the most dire of economies.  Gold never loses value.  The same amount of gold that bought an acre of land in the 16th century will still buy that much land in the 21st century.

Gold Supply and Demand

Many people think that since demand is high there will be more mines opened and more gold will come onto the market, devaluing their own holdings.  However, gold mining is not a simple industry.  Most of the accessible gold has been found already and whatever is left in the bowels of the earth is much harder to find and recover.  This is one reason that the price stays high and demand is never quite satisfied.  There is little danger of the supply of gold ever meeting the demand, which makes gold investing a very smart way to maintain and grow one’s wealth.

Gold investing can be easy and even economical.  Many investors with average incomes have a savings plan that enables them to buy gold bullion or smaller ingots on a quarterly basis.

If you are within ten years of retirement, gold investment is an excellent way to protect your retirement dollars from inflation and rapidly changing economies.  You can do this through a gold IRA or choose to retain physical possession of it with, of course, proper and secure storage.

There are so many advantages to owning gold yourself or including it in a retirement account.  Gold gives you security and a foolproof hedge against inflation.  Your future will be more secure and your wealth more stable by investing in gold.

Investment in Gold is an important decision and to make your decision easier we have reviewed all the Top Gold Companies

Did you enjoy this article? Share it!
  • no image available
  • no image available
  • no image available
  • no image available
  • no image available

Sorry, comments for this entry are closed at this time.