For over 5,000 years, gold has been the world’s most sought-after defensive asset. Here are a few compelling reasons why investors continue to turn to gold in today’s uncertain economic climate.
Hedge against market volatility
Conventional, dollar-denominated assets held in traditional401(k)s and IRAs are vulnerable to significant market volatility. Sometimes, the economic impact can be significant and long-lasting. And with so much economic uncertainty right now, investors never know if their paper assets will maintain their performance, depreciate, or even plummet to zero. Meanwhile, physical gold has historically demonstrated a consistent tendency to rise in price when dollar-denominated assets fall. This is why so many investors use gold to hedge against potential financial losses during market downturns.
Preserve your purchasing power
As the Fed prints trillions of dollars and inflates the nation’s money supply, the dollar’s purchasing power drops due to simple dilution. Fortunately, the Fed cannot print or devalue gold. And with worldwide gold demand surging against a limited supply, gold’s value is rising and may rise faster than inflation devalues the dollar. This means precious metals investors may have an ongoing opportunity to preserve their purchasing power long-term and secure a more confident financial future.
Protect your life’s work
Gold was money long before any government printed money. And it has outlived the collapse of all currencies and weathered countless economic storms.
Gold’s price has risen to fresh highs during every major economic downturn in US history. During the 2008 Financial Crisis, for example, IRAs and 401(k)s were devastated, while gold soared to a new high in three years. With so much economic uncertainty sweeping the globe today, thousands of Americans who know gold’s historic performance record are turning to gold to diversify their savings before the next economic crisis strikes.
Tangible security you own and control
In today’s increasingly digital world, banks are vulnerable to security breaches and sophisticated hacking attempts. And interest rates for savings accounts are often too low to outpace inflation.
This is why it makes good sense to diversify your portfolio with tangible assets you own and control outside of the vulnerable banking system. Gold and silver have an unassailable historic track record of defending investor wealth, outpacing inflation and maintaining intrinsic value beyond the mainstream financial system.
The benefits of owning a Gold IRA
Knowing traditional savings vehicles like 401(k)s and IRAs are vulnerable to economic turmoil can make retirement planning stressful and challenging. And diversifying with more dollar-denominated assets may not offer the protection you need.
Shifting a portion of your savings into a Gold IRA offers you a greater sense of confidence and control, knowing you’re truly diversified and prepared to defend your savings against loss of purchasing power, digital banking vulnerabilities and financial crises
