Category Archives: Current Events

Gold Investing: A Wise Strategy  

Gold Current Book Recommendation: Gold & SilverBefore retirement, it is essential to make smart choices during financial planning. People usually invest in stocks, bonds and fiat currencies, among other paper assets, to save for day to day expenses during this time. However, the current market scenario has shown that the return on these investments are not what they used to be. With inflation and currency devaluation, these investments are subject to changes in the economy and may actually result in heavy loss for someone during an economic slowdown. To avoid such unfortunate outcomes, it would be wise to consider precious metals for your portfolio by diversifying it with gold and silver.

Uncertainty in the economic environment across the globe calls for investment in an asset that does not depreciate in due course of time. Precious metals, like gold, silver or platinum are certainly the best options when looking for an investment providing hedge against inflation. Gold as an investment helps individuals in securing their future financially. Many reputed firms offer assistance in setting up self-directed IRA in gold to those who wish to invest in gold. New changes and developments in the rules and regulations regarding gold IRA have made it easier for people to purchase gold or shop for silver for investment.

It is preferable to purchase gold coins and gold bullion bars, the value of which increases due to factors like inflation, deflation or currency devaluation. As an advantage, purchase of gold is not regulated by any monetary policy of politicians or bankers and do not have the counter party risk other assets are associated with. These are some of the major reasons that persuade individuals to invest in gold or precious metal investments, when securing their future. Self-directed gold IRA can be accomplished by seeking help of reputed brokerage firm, which serves as the custodian of IRA accounts.

The brokerage firms inform their clients about the benefits associated with these investments and assist them in strategic investment plans. IRA owners are advised to study gold history and keep an eye on the latest gold news. This would enable investors to make appropriate changes in the investment plans and maximize financial gains. With ample room to gain and nothing to lose, investment in gold is certainly a wise decision for those who wish to lead a financially stable life after retirement.

For more in depth information on how to protect your financial future by investing in gold or other precious metals, check out the Guide to Investing in Gold & Silver from widely recognized expert, Mike Maloney.

9 Compelling Reasons To Buy Gold

9 Compelling Reasons To Buy Gold Now:

For over 5,000 years, gold has been considered a recognized, store of value. In current times of economic, political, and geopolitical uncertainty, gold is once again being recognized for what it is – real, true, honest money. Although the price of gold bullion has more than tripled in price since 1999, gold is still a worthy investment. Here are nine vital reasons why now is the best time for every investor to buy gold bullion, bars or coins.

Widely Recognized Safe-Haven Investment
Demand for gold by individuals and institutions increases during times of economic uncertainty and geopolitical risk. Gold has long been perceived as being a superior store of value.

Indestructible and Imperishable
Gold doesn’t rust, corrode, or tarnish. It doesn’t mildew, rot, or dissolve. You can’t shatter it, crack it, crumble it, or break it.

Hedge Against Inflation
Record food and oil prices are fueling global inflation. Investors will begin to seek out assets which are perceived to be anti-inflationary. And gold bullion has historically been perceived to be a good hedge against inflation.

Provides Insurance Against Portfolio Risk
Investors who are concerned about the downside risk to their portfolios will naturally look to invest in gold. The returns on gold have very little correlation to assets such as bonds and equities. Thus, gold can be expected to perform well during unusual market conditions.

Protection Against Currency Risk
When the U.S. dollar falls, gold is often purchased as an alternative investment vehicle. A lower dollar also makes a dollar-priced commodity such as gold cheaper for investors holding other currencies. So as the dollar continues to fall, investor demand for gold bullion will increase.

Preserves Wealth
Currently, interest rates stand at 2%, half of the official inflation rate. The Federal Reserve’s main concern right now is supporting the faltering financial sector. Interest rates must remain low until the housing sector and credit markets stabilize. Negative interest rates destroy the value of money kept in bank accounts and other non-speculative investments.

Cheap Compared To Oil
The historical gold to oil ratio is one ounce of gold to fifteen barrels of oil. Gold bullion is currently trading at a ratio of 6.48, (based on the current price of gold at 0 divided by the current price of oil at 2) close to an all time record low. For the gold to oil ratio to return to its historical mean, gold would have to trade at over 00 an ounce.

A Highly Liquid Asset
Gold is universally accepted around the world and can easily be bought and sold. As an investor in gold, you therefore have the alternative to trade gold bullion for different currencies if the need should arise.

Demand To Remain Strong
Higher inflation, rising oil prices, a declining dollar, a weakening U.S. economy, geopolitical tension abroad, and a slowdown in world economies will all play a part in the continued increase in the price of gold.

Diversify your portfolio and protect your wealth from the devastating effects of high inflation and the falling dollar with pure gold bullion or coins.