Is a Gold IRA the best retirement investment? Here are some reasons that a Gold IRA is the best investment for your retirement.
Investing In a Gold IRA: A Hedge Against Stock Market Crashes And Inflation
What is a gold IRA kit? Why not keep your money in a diverse bundle of stocks and bonds or ETFs?
Let’s start by explaining what gold is. First, gold can be an IRA investment. Unlike equity investments such stocks and bonds, which are a commodity, gold can be an IRA investment. The owner of gold has a unique physical product, something with actual value. On the other hand, equity investments mean that the investor holds a share of the company issuing the stock. Stockholders can make money when their stock purchases help increase profits and improve the business standing of their companies. This increase in profits results in a higher demand for the stock, which causes a rise in its price. Precious metal investors make more when demand for precious metals increases. This causes the “spot priceā of metals increase.
Stock Market Outperforms Gold
The stock market has outperformed precious-metal investments in the past. They were traditionally considered a hedge against inflation and risk, rather than a profit-seeking asset. Over the past 12 years, this has changed dramatically: silver and gold have outperformed the Dow Jones Industrial Average. In times of economic uncertainty gold has always been an investment standard for safety (after U.S. Treasury bonds). Its value often follows economic and market movements. In times of inflation, gold has been a safe haven because it holds its value better that currency-backed assets which can drop in value but climb in price.
Protect Yourself From the Next Market Crash
Why should you invest your money in a self managed gold IRA, or Roth IRA gold investment? This was evident in 2008, when gold prices ranged from $720 per ounce to nearly $980 an ounce. The gold price soared as the stock market collapsed and the economy plunged further into recession. Gold is an excellent investment in times of anxiety when investors need to keep their money away from a volatile stock market.