21 Reasons To Add Gold and Silver To Your Retirement Accounts
According to research and analysis, all investors should have at least some gold and precious metals in their portfolio. Sophisticated investors don’t think gold is an end of the world hide in your backyard yellow metal. These days investors are protecting their portfolios with gold and silver.
Just as Investors use hedges to offset losses in another asset class. Many investors buy gold and silver to hedge against the market and economic corrections and the decline of a currency, usually the U.S. dollar. This also protects against weakening currencies resulting from inflation and currency printing.
World Currency Liquidity
As a liquid asset, gold can be readily converted into cash or goods because it is a globally recognized currency. As the first form of money, and as the base for the gold standard which set the value for all money-gold represents security, safety and wealth, as a source of money that will always have value, no matter what.
The price of gold more than doubled between 2002-2007, from $347.20 to $833.75 an ounce. Then doubled again, from $869.75 in 2008 to a record high of $1,895 an ounce on September 5, 2011. Experts believe that the price of gold is undervalued and expected to rise through 2017 and beyond.
Could Deutsche Bank fail? What other banks are in danger? After the 2016 banking management scandal, who can you trust? Are banks too big? Is your retirement safe from banking institution mistakes?
Gold has been viewed as a way to pass on and preserve wealth from one generation to the next, especially because of global demand. Wealthy families have used gold and precious metals as an investment asset class to securely know that inheritances will maintain their value.Gold is physically indestructible and has a lasting independent monetary value that will safely protect wealth for future generations.
Diversification is the only way to secure wealth by reducing overall volatility and risk. By adding physical precious metals to your IRA, you free yourself of the dependence on risky paper assets such as stocks, bonds and ETFs. Now more than ever, it’s important to diversify and back your retirement with the stability and safety of physical precious metals.
Politically there have never been more uncertain times. A divided US, an aggressive Russia and China. An uncertain Europe and a middle east with no direction. When in doubt about politicians, and political environments, gold is a hedge against politicians and governments around the world.
Worldwide Government Debt as of January 1, 2017, $62,775,620,493,994
The government debt around the world can change currency values and send ripple effects throughout the world economy. There have never been more uncertain times.Greece, Ireland, Iceland, Portugal, the United States and more, are in danger of not being able to pay their debts. Gold and precious metals protect an investor from unpredictable world events that can happen at any time.
World politics is at a height of leading towards trade wars that could impact the global economy as we have never seen before. A trade war refers to two or more states raising or creating tariffs or other trade barriers on each other in retaliation for other trade barriers.
The September 11, 2001 attacks caused global stock markets to drop sharply. The cost of terrorism to the world was $52.9 billion in 2014, the highest since 2001. The world today represents a volatile environment that can cause economic consequences that investors need to always be aware of and prepared for.
Greed: Banking, Wall Street, and Corporate
Greed can and has led to economic losses suffered by the average consumer. Greed by the managers of financial institutions led to easy loans with little to no down payments leading to the housing market failure. Greed on Wall Street led to the creation of clever new financial instruments like mortgage-backed securities and credit default swaps. Greed by CEOs led to corporate extravagances and ridiculously high executive compensation packages. Greed by companies led to offshoring and the substitution of lower cost foreign labor for higher cost domestic labor.
401k’s and the majority of all retirement plans don’t offer a variety investment options and push direct investments to the stock market. Many investors are looking to a precious metal IRA as the ability to accumulate investment growth outside of Wall Street, You are able to take an “in-kind” distribution of the metals out of the IRA – meaning that when you choose to or are required to take a distribution, you always the option of either selling the metals in your portfolio or having your IRA metals holdings physically shipped to your doorstep “in-kind”.
EU collapse and global instability
Fear that the EU will disband. Brexit is considered to be what could be the start of the collapse of the EU. As each country,must deal with interior political battles surrounding immigration and debt, the entire world economy is at risk.We have a lot of political risk in the market right now, so gold has a strategic purpose in a conservative portfolio.
Housing Market Failures
Investors know what 2008 did to their retirement and regardless of short term rises in markets know that a correction can whip them out. Investors no longer want to trust blindly and hope for the best. Real Estate is once again at the height of the market. What will happen to the housing market with rising interest rates? How will the next housing bubble correction effect your portfolio?
Stock Market and Economic Corrections
- Panic of 1901
- Panic of 1907
- Crash of 1929
- Recession of 1937
- Flash Crash of 1962
- Market Crash 1973
- Black Monday 1987
- Friday the 13th 1989
- Mini Crash 1997
- Crash 2008
Eight years of a bull run have many investors worried that a correction and a bear market is overdue. A correction is a reverse movement, usually negative, of at least 10% in a stock, bond, commodity, or index to adjust for an overvaluation. Will the next correction be 40 to 50% for retirement accounts like is 2008?
Gold cannot go bankrupt. A stock no matter how it is performing is subject to market conditions, management, fraud, greed, new technologies, trade wars, strikes, terrorism and global market conditions that can lose substantial or all its value. The Enron scandal was a rising stable stock that the market and investors were bullish on…then in went bankrupt.The Enron scandal, publicized in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the de facto dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world.
Dollar replacement as world currency
China is pushing for a global currency to replace the dominant dollar. For decades, the dollar has been the world’s most widely used currency. Many governments hold a large portion of their reserves in dollars. Crude oil and many commodities are priced in dollars. Business deals around the world are done in dollars. If the dollar were to be replaced economies around the world would suffer corrections that would effect retirement plans in ways that people would not recover from.
Inflation & Devaluation
inflation and the constant devaluation of paper currency slowly weather away your purchasing power. What does a meal at home cost today versus 10 years ago or 20 years ago? How about going out to eat? We know that what we earned yesterday won’t buy us today what it could when we earned it. Gold and precious metals give investors the opportunity to keep up with the rising costs of goods.
Dollar and currency printing
The manipulation of currency value happens throughout the global economy. Federal Reserve’s Quantitative Easing program, launched in December 2008. The value ofpaper assets is vulnerable to lose value or return to their intrinsic value of zero through abusive governmental policies. Gold carries no government risk, can’t be printed at will by any Central Bank and is physical property that cannot be diluted.Gold does not carry the that come from the central bankers financial engineering to manipulate and rig the value of every asset class.
Gold is real Independence
The central banks do not issue gold. Gold is independent money and has no issuer’s counterparty liability, with intrinsic worth that cannot go broke.Gold is money outside the banking system that protects wealth from the corrupt actions of governments and financial institutions.The central banks do not want you to own gold. It is an independent monetary asset that would prevent the central banks from using their Ponzi scheme of printing paper money to exclusively manage, control and centrally control the economy.Gold is time proven to be independent monetary wealth and is an accepted unit of value for exchange for goods and services.
Preservation of wealth
Gold is held by many governments and wealthy individuals as a source of power, wealth, and stability.Gold and silver have stood the test of time for thousands of years and have performed marvelously in the face of inflation, market volatility, political turmoil, currency devaluation, terrorist threats and even war.
Gold is an important part of a diversified portfolio. A safe-haven protects investors against any possible economic corrections. Gold is stable that can offset losses of other market losses. Gold reduces the risk of the total portfolio over time and is especially important for stability in retirement funds. There’s also little chance that the portfolio will be wiped out by any single event when precious metals are part of a investment portfolio. That’s why a diversified portfolio with precious metals is your best defense against a financial crisis.
We simply do not know what is happening and what the world will look like in ten years. Investors cannot take a blind eye and hope for the best. We live in a global society with too many factors outside of our control to not diversify and have gold and precious metals as part of your future planning.
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