Why Add Gold To An IRA?

Five simple reasons to consider:

There are many reasons one could consider adding gold or precious metals to their IRA account or retirement portfolio. Here we will outline what we feel are some of the biggest reasons one should consider an allocation into gold or precious metals, and why we feel such an allocation can potentially play a vital role in safeguarding one’s savings and wealth.

1. Portfolio Diversification-Gold and precious metals can allow an investor to further diversify their portfolio. By adding precious metals to one’s portfolio, he or she is adding what we feel is a key asset class in the overall investment spectrum. Precious metals like gold have shown little correlation to stocks and bonds, and therefore may potentially reduce volatility in one’s investment portfolio.

2. Inflation hedge-Gold and precious metals may potentially help insulate one from inflation. In an environment of rising prices, goods become more expensive and one’s purchasing power declines. A hard asset like gold or like silver may potentially rise as overall prices for goods and services rise. Should the price of precious metals rise, it can potentially help offset some of the higher costs being seen and help preserve one’s purchasing power.

3. Currency depreciation-The dollar has been losing value for some time. This could be attributed to many things but the fact that the Fed has continued to pump the economy full of artificial dollars through measures like quantitative easing is not going to help boost the greenback. The dollar has seen its purchasing power decline. What a dollar bought a year ago a dollar cannot buy today. Precious metals ownership can potentially help insulate one from currency depreciation or other currency issues and protect wealth.

4. Geopolitical risks-There is a lot going on in the world we are living in today. Russia, North Korea, civil war in Iraq, Israel and Hamas-it seems that there is conflict everywhere. Gold is considered by many to be a “safe-haven” asset due to its long history and track record of reliability. Gold prices have the potential to rise during times of geopolitical upheaval or economic turmoil.

5. Gold is a store of value-Gold has been a reliable store of value for thousands of years. Currencies and governments have come and gone, but gold has maintained its status and reputation as a reliable asset throughout its history-and we don’t see that changing anytime soon. Gold is recognized all over the globe for its value and can be transacted anywhere in the world without counter-party risk.

This list is by no means extensive or complete but it does simply aim to highlight some of the reasons that gold and precious metals may potentially fit into your portfolio. To learn more about these potential benefits as well as additional potential reasons to add gold to your holdings or IRA, contact an Advantage Gold specialist today at 1-800-341-8584.


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