The Price OF Gold – Recession Proof
Since 2001 precious metals have steadily risen in value. In the seven years from 2001 through until 2008, the price of gold increased from approximately $270 per ounce to around $800 per ounce.
In 2008 the financial world was chaotic. Recession struck and numerous countries, including the US, were facing a monetary crisis. In America, the Dow Jones Industrial Average lost half of its value.
Banks were panicked and stopped making loans. Businesses couldn’t obtain bank funding for working capital and unemployment soared. Millions of hard working Americans lost their homes.
So what effect did this have on the price of gold?
Between 2008 and 2011, the gold price moved from about $800 per ounce to reach a record high of almost $1,900 per ounce.
Precious metals have cooled a bit since those peak levels but gold, at the time of writing this article, is still sitting at around $1,300 per ounce, which is still far higher than the 2001 price of just $800 per ounce.
Your best options for your Retirement Investments
There are many options for retirement investments in today’s environment. Most importantly, today’s seniors have a variety of ways to use gold in their IRA to make the best of their golden years.
An IRA is an Individual Retirement Account which is a very important part of an individual’s retirement portfolio. Retirement is a time in life which should provide individuals with a chance to use the wealth they have accumulated throughout their working years.
Retirement also provides financial specialists with opportunities to assist individuals to place their earnings into viable investment ventures. This provides these financial specialists with substantial profits. Individuals must make sure that they can cash in on their investments once they retire and that they can benefit from their IRA.
While many financial investments can help with an individual’s retirement planning, they are influenced by the value of the dollar. With the current economic problems, the value of the dollar continues to fluctuate, therefore any retirement investments need to be carefully considered. These types of investments pose certain risks, mostly dependent upon the trends of the dollar.
When an individual invests in either gold bullion or gold coins, they are no longer dependent upon the value of the dollar. The value of gold will almost certainly rise, regardless of the economic circumstances. Devaluation of gold can happen, but it is unlikely to last in the long term, unlike paper investments which depend upon the global economy. Investments in gold are common all around the world. Gold purchases for investment in an IRA can be done through a rollover or a transfer.
When it comes to investing for an IRA, the most important thing is ensuring that the investments are diversified enough. The owner of the IRA must ensure the portfolio is balanced between the precious metals, CDs (certificates of deposit), and stocks.
There are many investors who choose to take only one investment route, however, a sound investment strategy should ensure the portfolio has an equal level of higher profits, as well as safe growth. A gold IRA offers the extra aspect of gains and safety in the investment portfolio, without having to invest in riskier options such as stocks.
Gold offers the unique characteristic of retaining its worth. This is what makes a Gold IRA such a good option for a retirement strategy.
Even though gold prices can fluctuate as a result of different factors relevant to the market segment, there is a limit under which this precious metal will not drop. This makes gold more secure as compared to common stocks and still allows investors to enjoy profits during retirement, which is when an individual wants to see their profits.
A gold-funded IRA is a very appropriate and safe retirement strategy which individuals can use to maximize their retirement wealth. Individuals nearing retirement should begin looking for a reliable investment firm to work with to start their gold IRA. Whether it is a bricks and mortar facility or an online business, investing in gold is a very good choice to realize high profits and steady income, thanks to the steady value of gold.
When searching for an investment firm, one of the things to look for is several years’ experience trading in precious metals, specifically in gold. In addition, the investment firm should also have many satisfied clients and staff who are skilled and highly experienced with investing in gold. It is also important for the investor to research the investment firm’s reputation as well as the fees and charges that the firm will charge relating to the gold IRA.
Typically, a gold IRA will not carry any consequences when it comes to taxes. This is legal and gold IRA investors are not required to state how much gold is kept in their gold IRAs. There are no penalties if an investor’s tangible gold is converted to a gold IRA in order to avoid tax implications.
This is a very important point, especially if the set charges are low enough and the process is easy. It is also legal to own more than one investment account, so this can be done if an investor wants to open another gold IRA account or another type of investment account to protect their retirement funds.
Investing in a gold IRA is a great choice as a part of an individual’s overall retirement strategy. Since gold holds its value so well, making gold a part of a retirement fund is a good way to ensure it holds its value over the long term.
Below we have provided you with a ‘real-time’ pricing chart which demonstrates how gold has increased in value since 2000.
If you’d like to learn more about investing in precious metals, please complete the form on this page. You will receive a FREE Regal Assets Gold Investors Kit. You will also have direct access to the highly qualified investment advisors at Regal Assets.