Investing a Gold IRA as a Hedge Against Stock Market Crashes & Inflation
What is a gold investments IRA? Why not just invest your money in a diversified bundle of stocks bonds ETFs, and other securities?
Gold beats the Stock Market
Stock market performance has been superior to precious metal investments. They have historically been seen as a hedge of inflation and risk rather than as a profitable investment. In the past twelve years, however, this fact has changed drastically: over the past year, gold and silver have significantly outperformed Dow Jones Industrial Average. In times when economic uncertainty is high, gold (after U.S. Treasury securities) has been the safest investment. Its market and economic swings often affect its price. Because it is more stable than currency-backed assets (which can increase in price but decrease in value), gold has been a great investment during times of inflation.
Prevent the Next Market Crash
Why should your money be invested in a self-directed Roth IRA for gold or a self-directed IRA for gold? This fact was easily demonstrated when the price for gold ranged between $720 to $980 an ounce in 2008. As the stock market plummeted and the economy entered further recession, gold prices rose. When investors are worried and looking for a safe place where to store their cash after exiting a riskier stock exchange, gold does exceptionally well.
Gold is like wealth insurance
Keep investing today to ensure you don’t lose any of your purchasing power tomorrow. Every day the Fed prints dollars more, meaning that your savings dollar are now worth less. Investing in gold IRAs is your protection from inflation.
A hedge against volatility in stock markets is gold. Experts fear that stocks may be on the brink of a “triple top” after 2007’s bubbles. Stocks could plummet as much as 60%.
It is also a great way to diversify your savings. There’s more to gold than just managing a collection of paper assets like stock, bonds, mutual funds. You can also diversify with tangible assets.
The growth potential for gold is incredible. Some experts expect that silver and gold will increase in value because of the growing demand.
Rolling Over Your IRA into Gold
If this is the first time you’ve invested in IRAs and bullion or gold coins, it may seem complicated. You won’t find it any more complicated than rolling your traditional IRA over, but there are things to be aware of before you invest.
Rolling over to Gold has the same rules as any other investment. Annual contributions can be up to $5,000. The account owner will receive distribution at the age of 70 and a-half. At the time the distribution occurs, the owner may take ownership of the metals and sell them or cash out. You are in complete control of your wealth by creating a self-directed Gold backed IRA. Talk to your accountant, or refer to Section 408(m)(3) to the Internal Revenue Code to get more information.