Gold IRA

These are uncertain financial times. Major currencies are being devalued. Many traditional investments are becoming less secure as well as losing value. Many people are looking for safer investments. The answer lies in adding gold to portfolios to replace paper assets that are backed by devaluing dollars. Here’s why.
Gold was the international standard of currency until 1971. Governments and financial institutions were able to convert their currency into gold which had a fixed price of $35.00/ounce. Simply stated, this meant that currency was backed by gold which guaranteed its worth. That’s because gold has an intrinsic value while dollars not backed by gold or silver do not. When then President Richard Nixon discontinued gold-backed dollars in 1971, all that safety went away. Gold has gone from $35.00/ounce to $1,392.80/ ounce as of March 16, 2011. At the same time, the U.S. dollar has become progressively lower in value and especially so since 2008.
Reason 1: There’s Only So Much Gold
Gold is a finite resource. There’s only so much of it available and demand will continue to exceed the available supply. Gold is rare and it is in demand for electronics, jewelry, investments and more. And while it is traded openly on global commodities exchanges, the limited supply makes it different from commodities like pork bellies, rice or sugar.
Reason 2: Gold Doesn’t Depreciate Like Currency
Most people have their investments in dollars or in stocks and bonds that are valued in dollars. Therefore, if dollars have less buying power, these investments likewise have less actual value. The hard fact is that dollars devaluate as government debt increases. Gold is not so affected.
Reason 3: Currencies Are Not Equal; Gold is Recognized Universally
While the U.S. dollar is accepted in most parts of the world, it is not always equal in value to other currencies. Gold, on the other hand, has the same market value everywhere.
Reason 4: Gold is Safer. It is likely to Retain its Value No Matter What
Gold has always been one of the most expensive commodities. In fact, it has never returned to its ‘gold standard’ market price of $35.00/ounce even in the face of catastrophic occurrences. It is very-much in demand the world over. It also has a strong psychological appeal and is in demand thanks to public perception too.
Reason 5: Gold Has Continued to Reach Higher Record Prices
Other commodities have fluctuated widely in price or stayed nearly unchanged. Gold price, however, has risen annually by more than 17% since 2004. Many analysts believe this trend will continue. Citigroup, for example, says gold prices may reach $3,700/ounce by 2016.
The Choice for Investors is Clear…
For these reasons and many others, gold is the ideal choice for today’s investors who seek greater safety through portfolio diversification and higher long-term potential appreciation. Many investors have been converting their traditional and Roth IRAs into gold IRA accounts through companies such as American Bullion.com who specialize in rolling over paper assets into gold.