Why Investing in Gold Makes Financial Sense

| November 18, 2013

During these tough economic times, many people are reluctant to invest their cash in the stock market, especially those with IRA (Individual Retirement Account) investments set up for their retirement.

Investing in Gold

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Putting your money in federal savings accounts isn’t much better either, as the interest rates are so low it is hardly worth the effort to organise. But there is one alternative to both of those options that is fast becoming a popular option with many savvy investors looking to grow their money for retirement without having to worry about getting a low return on their investments (or in some extreme cases, ending up with less money than what they have invested) – and that alternative is gold!

What’s so great about gold?

The cynics among us will probably tell you that there isn’t much of a track record when it comes to seeing how well gold performs, but let me tell you that they are wrong! Why? Because they haven’t even bothered to research what they are talking about!

Let me explain. Although gold is subject to speculation just like with other investment markets, it is a well-known fact in the investment world that the price of gold correlates with the price of crude oil, which, as you probably know, increases in price for the most part due to constant high demand.

Even the federal government invests in gold!

Many countries around the world, including the United States, keep a large stock of gold (known as a gold reserve) which can be sold during times of economic or financial crisis. In fact, as of September 2013, the US government owns around 8,133 tons of gold – worth about $11 billion!

The reason why they have chosen to invest so much money into buying such large quantities of gold is because they know it is one of the most valuable metals on the planet, and even if they could not sell their gold within the United States, they would be able to easily find buyers abroad.

So as you can see, it makes perfect financial sense to invest in gold rather than highly volatile stock market shares. Setting up a gold IRA isn’t particularly complex or confusing, as long as you find the right gold IRA company to help you. It is worth checking some Gold IRA company reviews out first before deciding to use a particular organization, so that you know your gold IRA investment has been taken care of with your best interests at heart.

Do I need to physically store gold that I invest in?

Not at all! These days, you simply invest in gold stocks rather than buying physical gold bars! Investing in gold stocks is a straightforward process that any reputable gold IRA company will be able to assist you with.

Should I invest all of my money in gold?

Even though gold is a great way to invest your cash in, you shouldn’t invest all of your money into one particular investment opportunity. Instead, invest only some of your money in gold, keep some of your money in cash (perhaps in a federal savings account – although as mentioned you won’t earn much interest), the aim is to spread your investments so that you lessen the risk of ending up with a potential loss of money once you retire.

Why Investing in Gold Makes Financial Sense


Category: Investment

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