Gold has a rich history throughout the world. It has proven valuable to countless cultures for thousands of years, and it continues to be valuable today. All precious metals carry a synonym for wealth, and of all the precious metals, gold is valued as the highest. While most cultures still view gold as a valuable commodity, it has long lost its intrinsic place in the world’s economy. Paper money has become so easy to print and has slowly taken over the currency exchange, even though paper money was once completely backed by gold. There isn’t enough gold in the world to cover the monetary needs of all its nations, so paper money continues to be printed at alarming rates. So why invest in gold? There are many good reasons, and this guide will share several of them.
The Benefits of Investing in Gold
There are many benefits to including gold in your retirement portfolio. Not only does it have a great history of holding its value throughout time, but many customs see gold as a way to preserve their wealth for future generations. Why invest in gold? Here are five more reasons to consider adding it to your retirement accounts.
Weakness of Paper Money
Paper money has replaced gold as the main currency exchange in the world markets. One of the highest reserve currencies is the U.S. dollar, which tends to have a great value. However, all values can eventually fall, as has been proven throughout history. From the years 1998-2008, the value of the U.S. dollar fell short against other country’s currencies. This sent people to a known currency that is and always will be valuable: Gold. During those tough economic times, the price of gold nearly tripled. While the value of paper money can never be certain, you can almost guarantee that the price of gold will never completely drop.
Most investment portfolios are poorly diversified and so when one investment goes sour, they all do. This leaves people with lost funds and a dismal retirement outlook. To be diversified, investors should have at least a couple percent of their entire portfolio configured in gold. It provides a solid balance for most investors and secures wealth. If you have any questions about the amount of gold you should have in your personal investment portfolio, call the expert team at Regal Assets. They can take an in-depth look at your portfolio and help identify weak areas.
Many countries around the world have realized the value of gold and have begun purchasing it in large demand. China and India are two of the world leaders in gold consumption, and they haven’t shown signs of slowing down. Investors in countries all over the world have also begun to purchase gold, meaning the demand for the precious metal has risen. Since gold cannot be reproduced or created, the amount currently on the earth is all that is left. It will become scarcer every year, and the price will likely increase. The best time to purchase gold is now.
The number one rule of investing is to never buy an asset priced below the replacement value. Gold is currently priced at the average rate of product while also being below the cost of production. Since the price of gold has boomed in the past decade, so has the cost of production, as mines all over the world have scrambled to find more. There has never been a better time to purchase gold.
As mentioned earlier, gold prices tend to rise during tough economic times as the value of paper currency weakens. The value of the U.S. dollar also tends to weaken during geopolitical uncertainty, which is when world tensions tend to arise. In today’s economy, geopolitical uncertainty is happening constantly, but gold has performed well through it all. In fact, gold tends to outperform other investments during world crisis. The price of gold raises the most when confidence in government is at its lowest. With another U.S. election looming, now is a great time to invest in gold.
How to Invest in Gold
Why invest in gold? There are several great reasons listen above, but the real question is: how can you do it? There are actually four different ways to invest in gold. Each offers a unique opportunity for the investor.
Purchasing gold bullion or bars is the most direct access you can have to gold. You will need to work with a broker and a custodian to help you purchase, manage and store all of the physical gold you own.
Crystal Ball Bets
With a crystal ball bet, you are investing in gold on credit. If the value of gold moves in the direction you hoped, you can make a lot of money. However, it’s a risky business and can lose money for the investor. Work with an experienced team to maximize your chance of success.
Similar to mutual funds, ETF’s pool money from a group of investors. The account is managed by a firm on your behalf. ETF’s are efficient, liquid and convenient, but they may not be the right option for every investor. Speak with a professional at Regal Assets to learn if this is a good choice for your portfolio.
With a gold certificate, you have ownership of some unallocated gold. This gives you the option of allocating the ownership into actual gold, if you desire.
Why Invest in Gold?
There are so many reasons investors choose to put their money into gold, and since it is in increasing demand, it must be working well for them. Diversify your own portfolio by adding a percentage of gold. Not only will it hold its value, but it is also likely to increase, especially if the trend of the past decade continues for much longer.
Work with a reputable broker to help you purchase quality gold (government regulated specifications) and find a good custodian to help you manage and store it. If you need a referral, speak with a member of the Regal Assets team today. Regal Assets provides a wealth of information about gold investing. To learn more visit their website at www.regalassets.com.