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6 Benefits of a Gold Backed IRA

gold backed iraDue to current chaotic and unstable economy, most people to make smart investments for their future. One of the major concerns among the investors is whether their assets will hold a better value and provide decent income after retirement. This is why investors are opting for gold backed IRA as a way of improving their prospects for comfortable retirement.

The following are 6 reasons why gold is considered a better investment choice for your future:

Gold will always have a higher value

Since 500 B.C, gold has stood the test of time and has remained the most precious metal. Its ability to maintain its value makes it so valuable. Even if its price is dropping in the current market, you need not to be worried. Rather, this is perfect time for you to invest heavily in gold.

Because of inflation

You should note that gold is very good in times of inflation. This is so because the value of gold raises along with the inflation levels. This is historically: in 1940s, 1970s, 1980s. During those decades, inflation saw all-time high, but return on gold was 130-percent.

At the moment the price of gold is low and therefore you should buy more now in order to gain huge profits when inflation rises again. The current price of gold per ounce is about $1,300. This price is $500 lower than the previous cost. As a smart investor, you need to take advantage of this.

Portfolio diversification

You can diversify your assets by adding 10% to 30% of gold to your portfolio. According to the old saying, “Do not put all your fortune into one basket.” During times of economic turbulence, the paper investments record a tragic decline, whereas the gold can hold its value. In any case, it is not advisable to make your portfolio 100-percent gold as diversity is always smarter.

There are a lot of companies that allow people to rollover their current 401k or IRA into precious metals. One such company is Regal Assets, an industry leader in the gold market. However, its important to do your research and check out some of the Regal Assets customer reviews before diversifying your portfolio.

Protect your assets during crisis

The value of currency depends mainly on current economic conditions. For example, during great depression in 30s, the dollar value had to plummet. Nowadays, it is quite hard to predict whether another currency crisis can occur. In any case, gold is sure way of surviving any future currency crisis.

High liquidity

Some research will help you find the right place to sell gold at a better price. There are several markets that offer higher prices for particular types of gold as compared to others. The different types of gold are:

  • Gold jewelry. You can get the best price at retail outlets and jewelry stores. Remember to sell craftsmanship and beauty of jewelry as whole and not just gold value.
  • Collector coins. You can find popular deals at American Numismatic Association
  • The Gold bullion. These bars and coins are offered by the government. They usually come in standard purities and weights. Therefore, their selling prices are very straightforward.

Governments are involved

Across the world, governments are investing a lot in gold. This is because they are predict an increase in the gold demand or are just preparing for uncertainties. This makes gold backed IRA the best future investment. It is also important to note that gold can be sold anywhere across the world and can be converted into cash.