If you know someone with a gold IRA, then they have probably told you stories about its performance that seem unbelievable. Amazingly, after years of huge gains, many people are still skeptical of gold.
Even an admitted genius like George Soros, a man worth billions of dollars, has come out in previous years and derided the gold fervor that seemed to grip many investors. He has recently changed his mind and begun to purchase gold in massive quantities himself.
A Brief History Lesson About Gold
Gold is a precious metal. It exists in limited quantities because it cannot be manufactured. The only gold in the world has been drawn from mines over the course of long centuries. Therefore, the quantity of gold in the world is relatively stable. Occasionally, a new find increases the amount of global gold by a meager amount.
Because of its beauty, gold has been used in making jewelry and as currency in many different cultures and nations. It also has a practical value as an extremely malleable metal. Most electronic devices today have small quantities of gold inside them because it conducts electricity well and resists corrosion.
Since the gold is valuable for different reasons and exists in a stable supply, it retains its value through the ages. Occasionally it becomes more valuable than it is at other times. This period in the world’s history is one of those times, because gold has soared in value in the last ten years.
The last time this happened, in the 1980s, gold eventually lost value and returned to a much lower price per ounce. Many people have ridiculed the rush to buy gold, suggesting that this metal will simply drop back to the price range it occupied a decade ago and take many fortunes with it. There is good reason to believe that, this time around, gold is not going to lose value.
Unlike gold, the money in your wallet and in your bank account does not exist in a stable supply that secures its value. The government has printed dollars more than once in the past few years. They simply threw them into the money supply, hoping to solve problems by throwing money at them.
Unfortunately for everyone who depends on the dollar, such as anyone who works and receives wages or a salary, this has reduced the value of the dollar significantly. This result is unavoidable because US dollars represent the total power of the US economy. If there are more of them suddenly, then each represents less of that total power.
Many people have taken to complaining about rising prices of food and gas. What they do not understand is that those things have not changed their underlying values.
It is just that the dollars with which they are purchased are now worth less than ever.
Using gasoline as an example shows the power of gold and the impact of inflation. Ten years ago, gold was worth a little over $300 per ounce. That ounce would have purchased about 220 gallons of gas, which had an average value of $1.36 back then.
Today, the price of gas is close to $3.50 per gallon. Gold, however, is worth more than $1,600 per ounce. That same ounce of gold from 2002 would now buy more than 450 gallons of gas.
Why Make Gold IRA Investments?
Inflation is the worst enemy of retirement. It is every thinking pensioner’s fear that his savings and investments will be worthless when he retires because the money will no longer have the same value it did when he deposited it.
When investment funds choose to include gold in their portfolios, they have a hedge against inflation. The more gold included, the more resistance a retirement portfolio will have.
If you think that you would like to share in the protection against inflation that this precious metal provides, ask your IRA custodian about gold IRA investments. If your custodian does not permit these investments, find one who does and arrange a transfer of your funds into a gold IRA.
This process is easy and will not cost you anything but a small amount of your time. This time investment will pay you back in years to come as gold holds its own value against the weakening dollar.
If you need more information on Gold IRAs or Gold IRA rollover have additional questions regarding the ins and outs of investing in gold, visit IRA Investing . This is an informative site that provides all of the information you need to make a fully informed choice. If you are looking to invest in gold, they can help you find the best company and plan for your needs.