While a Gold IRA is always going to be beneficial to anyone who has one, they are an especially sensible idea right now given the current financial and political climate in the United States.
We’ve been fortunate to have experienced a bull market within the last several years, but most economic experts believe this bull market is on its way out. Yes, the stock market is within reach of some major records. But at the same time, financial analysts believe we are also on the precipice of another crash and a resulting recession, which could last years (similar to the recession that began in 2008). This means that now is a good time to take advantage of some of the profits your stocks have earned in the last several years and convert a portion of your investments to physical precious metals, like gold.
For seasoned investors looking to get into the precious metals market, financial advisors generally recommend a five to 15 percent precious metal portfolio allocation. But considering today’s uncertain economic conditions, complicated by trade wars and tax reform, this might not be enough of an investment.
Current market state
Right now, the stock market is oversold, thanks in large part to massive numbers of foreign investors who are desperate to find new routes to achieving profits. In addition, public companies have borrowed $1.9 trillion in money from the Federal Reserve that was earmarked for infrastructure, growth and higher wages, and instead decided to spend $2.1 trillion on company buyback programs. This results in artificially inflated stock prices, while leaving the company stunted and unable to grow even if ideal opportunities arise.
A combination of rising interest rates and a swiftly growing national debt have also put American treasuries into bad condition. All the while, countries like China, Iran and Russia are petitioning the International Monetary Fund to lower the status of the American dollar, as they ponder the idea of creating a single global currency.
With so much volatility in the economy right now, gold IRAs could very well be the best defense you have available against some of the uncertainties. There is still tremendous growth potential in precious metals, especially when you consider the fact that gold right now is more than 30 percent below its previous high mark, and silver is more than 65 percent below its previous high.
Precious metals have been remarkably consistent over the ages as a universally accepted form of currency in their own right. By using them in an IRA, you’re able to take advantage of their stability in a way that is beneficial to your portfolio in the long term in terms of growth and security.
If you’re interested in learning more about the various methods of developing gold IRAs and why investing in gold and other precious metals can be a worthwhile strategy for you to use in your long-term savings goals, we encourage you to contact the team at Gold Wealth Financial today. We look forward to assisting you!
- by Steve Hunt
Categorised in: Precious Metal IRAs