Smart investing requires you to have a penchant for risk-taking, while also remaining grounded in the reality of the market and the product. It’s important to take a good, hard look at the current state of the market before you purchase anything. Right now, the U.S. dollar is substantially strong, which typically has a balancing effect on precious metals. If the dollar is strong, the price of gold and silver is lower, meaning it is a great time to consider buying. Here are five reasons you should consider investing in gold as part of your long-term, smart investment plan.
The Best Reasons for a Gold Investment
A gold investment is a great asset to a diversified portfolio and every day more and more people, banks, and even countries are choosing to invest in it. This attractive option has proven to be a sound, profitable choice for many investors. If you haven’t yet added precious metals to your retirement account, here are five reasons you should.
Gold Provides a Safe Haven
The financial recession that occurred several years ago saw the value of the U.S. dollar decrease, which greatly raised the price of gold and other precious metals. Add to this the global state of the worldwide economy (financial troubles in countries across Europe, the debt ceiling, etc.) and the price of gold is likely to increase. History has proven that whenever there is economic uncertainty, the value of gold rises.
This is because investing in gold provides a safe haven for savvy people preparing for retirement. Its value will never fully debase and therefore it will always be worth something. In the past ten years the price of gold has steadily risen, providing many smart investors with a worthwhile return and a good balance for their portfolio.
The Smart Countries are Buying
The Wall Street Journal reported that China strongly believes in a best gold investment strategy, and their demand for the product increased by 32 percent in 2013. Close behind China is India, whose rate of gold consumption rose by 13 percent last year. Both of these smart countries realize they should invest in a real, physical commodity. While paper currency can devalue, the price of gold will never fully deflate, as it is the whole basis of our economic market. Many countries no longer have enough gold to account for all the paper currency they are creating, meaning the paper has no real value without the gold to back it up. China and India realize this and are buying gold to increase their value for years to come.
The Price is Low
With gold rates currently so low, mines all across the United States are closing, since they won’t have enough money to operate them. With gold below the rate of $1,200 per ounce, additional mines in other countries will close as well. Without mines to find the gold, the product will become scarcer and subsequently increase in value.
The best way to ensure a positive gold investment return is to develop a smart strategy. Buy gold and other precious metals when the price is low (such as it is now), and sell when the price increases. It’s that simple to make a great return on your investment. Speak with a professional today about the price of gold and getting precious metals inserted into your retirement portfolio by contacting a professional with Regal Assets.
Provides a Hedge for Investors
It’s a fairly seasoned rule of investing to have a balance amongst your financial options. If you have a large investment in a certain type of currency (usually the U.S. dollar for many American investors) then investing in gold provides a protective hedge for your accounts. The value of gold has more than quadrupled in price over the past few years, and analysts don’t expect it to go anywhere but up. Meaning, if you are going to buy gold, you should consider doing it soon.
The Demand is Rising
Most of the world considers gold and other precious metals as the perfect gift for weddings, anniversaries and other holidays that celebrate love and romance. In fact, India and China (two of the biggest gold-investing countries) have a growing demand for precious metals because they view it as an important part of their culture and a symbol of their wealth and status. Not only do countries consider ornaments and jewelry to be some of the best gold investment, but they are also demanding coins and gold bars to get more solid product in their portfolios. .
How to Get Started in a Gold Investment Strategy
Now that you can see how purchasing gold as part of your retirement portfolio or other investments can be profitable for you, it’s time to get started. If you haven’t invested in gold products before, you might require a little guidance to help you get established. Purchasing gold is a little different than most typical investments. The government regulates the quality of gold you can invest in, meaning you can’t just purchase any type of gold and consider it a part of your retirement savings.
You will need to work with a reputable broker to find and purchase gold. It’s also required that you have a custodian to manage and safely store your precious metals. These regulations are put in place to protect your investment, but they can be confusing to manage on your own, especially if you are a first-timer. Consider working with an experienced company that can provide services to help you with your gold investing strategy.
Remember to look for a company that has a proven track record of success in helping investors find and purchase gold for their portfolios. Ask for a trusted referral, and do a little research on the company to ensure they can provide all the services you need. If you have any questions about gold investments, or if you need any advice on brokers and custodians, don’t hesitate to contact the team of professionals at Regal Assets. Check out their website at www.regalassets.com for additional information and to get started on your new investing in gold strategy.