Gold Sales Setting Record Highs while Stock Market Experiences Crisis

The recent plummet in the stock market is making international news headlines, receiving attention from both investors and non-investors alike. This financial disaster has prompted many investors to buy gold to add to their IRA investment portfolios.

More Americans are turning to gold IRAs because they combine a physical, tangible asset with the modern tax-advantaged features of an IRA. Adding precious metal to your IRA also helps hedge the volatility and risk of your retirement portfolio.  Unlike traditional stocks, bonds and mutual funds, gold can consistently help preserve wealth and safeguard IRA dollars by increasing the store of value of physical metals to your retirement fund.

This month alone, sales in precious metal have skyrocketed – even setting record highs. February 9 saw the most money flow into Gold Bullion since January 2009. In fact, investors purchased approximately $346 million in gold in one day.

Due to the increased demand for gold, the price is now is at all-time high.  With spot prices up 16pc since the start of 2016, precious metal has not experienced such a prosperous start of a new year since 1980. Gold prices also reached their highest level in a year, gaining 3.6pc at one stage to $1,234.64 an ounce.

Below are five reasons why people are choosing gold.

1. Protection from Declining U.S. Dollar – The price of gold moves counter to the value of the US dollar. Therefore, a gold IRA will offer some protection against the falling US dollar. When your retirement is at stake, protection is quite significant. If based only on cash and equities, your portfolio has the potential to be affected greatly by the declining dollar.
2. Hedge Against Inflation – Many of you already know that inflation can be the biggest retirement risk. However, the gold IRA diversification option provides some resolution to this problem. In fact, gold – and nearly every other precious metal option– has historically performed in inflationary markets. Also, with alternatives such as bitcoin growing against the dollar, you can expect even more inflation. By choosing a gold IRA, you are taking a step to protect your future wealth against inflation.
3. Diversification – Often the number one target of any retirement account is sufficient diversification, which is also one of the biggest benefits of having an IRA gold. This type of account allows you the freedom to make your own investment decisions plus offers sufficient portfolio diversification.  Sufficient diversification protects your savings against volatile economic environments. Gold IRA also helps you build your portfolio so it’s not based off of one asset class; it offers you the opportunity to simultaneously invest in paper-based assets and safe haven assets.
4. Tax-free Savings– You can transfer an existing IRA into a precious metals IRA at any time as long as the assets go “from custodian to custodian.” In this direct transfer process, the money flows directly from one IRA custodian to another. An IRA rollover occurs when “you” receive the distribution from your existing IRA account and then turn around and deposit it into another IRA custodial account. Either way, the process of moving funds is tax-free. Regardless of the plan you have in place – be it 401(k), 403b, 457b, annuity, or pension plan – you would be able to obtain a gold IRA without losing any of your savings to taxes.
5. Historical Value Increase – Gold has an exceptionally rich history. The first set of coins to contain gold were seen as early as 800 B.C. Nearly 300 years later, the first coins made of pure gold were found. This rich history has helped preserve the value of gold from generations to generation, which is opposite of paper currency. You can trust gold to preserve your wealth over the long-term.

 

If you’re considering adding precious metals to your investment, gold IRA reviews may help in your decision. 2016 is set to be a lucrative time for gold investments – take this opportunity to add physical gold to your portfolio!