Gold is an asset class with unique characteristics all of its own. Individual investors of all levels of experience are choosing to invest in physical gold bars and coins as a way to protect and build wealth. Here are five reasons you need to buy and own gold now.
1. Gold Is Not Correlated To The Stock Market
Traditionally, when stocks have gone down, gold has gone up. Right now, the U.S. stock market is poised for a crash. The current bull phase in U.S. stocks is done and the rise in stock prices has been artificially fueled by the Federal Reserve’s easy money policies. Gold is a non-correlated asset to stocks and is considered a “safe haven” investment. History shows during periods when stocks have gone down, gold rises even more.
2. Gold Increases Your Purchasing Power
A dollar doesn’t buy what it used to. The value of paper money rises and falls. Declines in the U.S. dollar mean you can purchase less. With inflation at 40-year highs, this is never more important than right now.
From 2001-2008 the U.S. dollar index collapsed over 41%, which means your dollars buy 41% less. Billionaire investor Warren Buffett drilled this point home in his 2014 letter to Berkshire Hathaway shareholders. He explained how over the past 50 years, the purchasing power of the U.S. dollar fell a shocking 87%. That means it now takes $1 to buy something that could be purchased for 13 cents in 1965, as measured by the Consumer Price Index.
Despite recent dollar strength based on the Fed’s interest rate hikes, gold has been gaining. Over the past 100 years gold has seen a 157% increase in its inflation adjusted price.
3. Gold Is A Hedge Against Inflation
Inflation is a wealth killer. In the 1980s inflation levels hit 14% in the United States. Analysts today fear the current bout of major inflation could be in place for months or even years to come in the wake of the Federal Reserve’s massive money printing policies which swelled the central bank’s balance sheet to above $4 trillion, from $800 billion prior to 2008. That is a lot of money swirling around the financial system, which is fodder for a major bout of inflation. Gold holds its value and often increases during inflationary periods.
4. Gold Preserves Wealth
Gold is the world’s first currency. Gold has been recognized as a currency and store of value for thousands of years.
Gold coins were first created by King Croesus of Lydia around 550 BC and circulated in many economies before paper money was created. Bond and equity markets can crash and stocks can become worthless. Gold will always have value. Governments can turn on the printing presses when they need to print more money, but no one can print gold.
5. Gold Is Rare
Unlike oil, there have not been any new large gold mines discovered in recent years. In a recent Goldman Sachs report, metals and mining analyst Eugene King estimated there is only 20 years of known mineable gold reserves remaining. Gold is scarce and is running out. At the same time, Central Banks are buying gold at record pace. This supply and demand equation can only hold up for so long…
Saving enough money for a comfortable retirement can be a scary proposition. We would like to share a free Gold IRA Guide with you to demonstrate how you can own gold and how it can play a key part in your portfolio and help you reach your retirement savings goals. Gold is a unique investment that tends to rise in value when the stock market crashes. Throughout history gold has been used to preserve and grow wealth and it offers you an opportunity to hedge against inflation and increase your purchasing power in the years ahead.
Advantage Gold focuses on empowering and educating investors and we pledge to help you make informed financial decisions that will help you secure the type of retirement you have always dreamed about. Protect your money and control your financial destiny… own gold today!
A Gold IRA is a self-directed individual retirement account that allows ownership of physical precious metals.
Inside our Gold IRA Guide You’ll Discover:
- How using gold as a diversification tool protects you from forces that constantly attack your money such as rampant inflation, fiat currency printing and more…
- How to invest in gold correctly, using retirement accounts that accept physical metals and have significant tax benefits
With a Gold IRA, you are no longer holding paper assets such as stocks and bonds but rather physical precious metals in the form of gold and silver coins or bars. Ultimately, it is up to you to decide which types of precious metals you want to be held in your account.
Please reach out to our precious metals executives with any questions that you might have about how to own gold and the process of setting up a Gold IRA. We are available and happy to assist.