Anybody looking into setting up a retirement fund and future financial options is sure to have come across a number of persuasive advertisements declaring Gold IRAs as the ideal saving solution. The question that many readers are sure to have as a result is why gold? What makes this metal so special compared to the dollar? This brief guide to investing in precious metals will show new investors why gold is overtaking cash and hopefully encourage current Gold IRA owners to take a look at silver and other metals.
Why Invest in Gold and Other Precious Metals?
We are all used to currency based savings accounts and relying on the almighty dollar to see us through to retirement so why are we suddenly being encouraged to make the switch to gold? Simply put, the current financial situation and growing national debt means that we have to start thinking differently; gold values will undoubtedly fluctuate to a degree but this commodity will never stop being valuable and any downward trend is unlikely to be as bad as current concerns over future inflation and debt relief initiatives. Gold is being viewed as a wise investment – either through physical purchases, stocks or ETFs – because of its strong history of stability and value and encouraging current trends. This precious metal has risen by approximately 300% in the past 5 years according to Forbes, a source whose expert opinion is certainly welcome alongside the investment companies selling the IRAs in the first place and all those eager bloggers.
While all this talk about the stability of gold is great and reassuring, we cannot overlook the wider reaching concept of ‘precious metals’. Many people initially assume that a Gold IRA means gold only but while gold coins, bars and stocks are common and highly sought after, IRA owners should not forget about the potential of silver, palladium and platinum. There are more restrictions on palladium and platinum, for example there are few legal types of palladium that can actually be added to the fund, but a good broker can help you utilise these precious metals wisely so you can increase your financial security and diversify your portfolio. Silver, meanwhile, has arguably been a little underrated in recent years. There have been reports in September 2013 suggesting that silver may actually be performing a little better than gold, as gold takes one of its slight dips in value, so it always worth looking at these options where possible.
So, why invest in gold and precious metals when you could stick with your current solutions? The simple answer to that question is because relying on the dollar and conventional means is not a reliable option anymore and precious metals like gold, silver, platinum and palladium are being recommended as safer, more valuable commodities to invest in. Any reputable Gold IRA custodian should be able to help you deal in the best precious metal options with a sound knowledge of current rules and trends and it is highly recommended that current gold-investing IRA owners discuss these wider options for greater security.