Is a Gold IRA the Right Choice for You?
Investing in physical gold and other precious metals offers several benefits, but you may be unsure if a Gold IRA aligns with your financial goals. Let's explore some reasons why our clients decided it was the right choice for their needs.
Traditional IRAs and 401(k)s that hold stocks and bonds can experience significant losses during major economic downturns. In 2008, for example, IRAs and 401(k)s were decimated by 50% and some investors took up to 5 years to recoup their losses. Today, with inflation eating away at the dollar’s purchasing power, retirees with savings held exclusively in traditional accounts may not have time to recover from another major economic crisis.
Fortunately, gold historically rises in value when dollar-denominated assets fall during a crisis. After the 2008 financial crisis, while IRA and 401(k) holders struggled to recoup their losses, gold owners saw their holdings rise to record highs by 2011. And gold has helped protect investors during every major economic downturn in US history.
This is why we believe diversifying your retirement savings with precious metals held in a Gold IRA may help protect your life’s work from the next potential downturn.
Inflation and your purchasing power
When the Fed prints currency and floods the economy with money, they create inflation, which erodes the dollar’s purchasing power. Today, as prices continue to rise for essentials like food, fuel, housing, and medical care, it’s important to consider whether your nest egg is sufficient to cover these costs during your retirement years.
Historically, gold rises when the dollar’s purchasing power drops due to inflation. During the high inflationary period of the1970s, for example, gold outperformed all other asset classes, helping many Americans preserve and even increase their wealth while other investments declined. And during the high inflationary period from 2020 to 2024, gold rose to fresh record highs.
If inflation resurges, and gold outperforms as it has in the past, holding a portion of your savings in a Gold IRA may help defend against loss of purchasing power.
Financial defense against another real estate crash
The financial crisis of 2008 and ensuing Great Recession devastated many real estate owners. Meanwhile, gold climbed more than 130% and silver skyrocketed almost 310%. Investors who allocated enough of their savings to gold and silver shielded their retirement from the crisis and financially survived the recession.
If you’re worried about how another real estate crash or recession could impact your real estate holdings or retirement savings, remember 2008.
