Why You Should Consider Investing in Gold IRA Rollover
Having an individual retirement account is a wise move, if you want to ensure you have enough money for your retirement so you can enjoy it to the full. But why should you consider converting from a paper based fund to a fund that is funded with a precious metal, especially gold?
Well there are a number of various benefits to funding your IRA with gold investment.
Gold v Inflation
Anyone looking at the simple facts of the economy will tell you that inflation is not something that can be controlled, in fact it easily gets out of control on many occasions.
So what is the best way to protect yourself, your investments and your retirement against inflation? The same way it has been for centuries… Invest in Gold.
You will know from basic economics that when inflation goes up, so does the cost of living. And when the cost of living goes up, the money you have saved for your retirement becomes less, preventing you from having the retirement you deserve.
So why is gold a good way of beating inflation? Historically gold has performed well during times of inflation. In fact it has also done very well at times of deflation too.
The reason why gold does so well during a variant economy is because it holds its value no matter whether the economy is up or down, especially during times of crisis, be they political unrest, war or other tensions.
How inflation works
In America in 1967, if you were buying your first home, it would have cost you around $22,500. A new car would set you back around $3,000 and if you wanted to go see the latest blockbuster at the cinema, you would be expected to pay a dollar for each ticket and an extra 5 cents for popcorn [sources: U.S. Census, Dept. of Energy, National Association of Theater Owners].
Now you may think that those prices are unbelievably low, considering a car today costs what a house cost then, but what you need to remember is that the top salary in 1967 was around $19,000 a year, plus 60% of households in the US earned less than $8,300 a year [source: U.S. Census]. Now fast forward to 2011 and that income of $8,300 a year becomes $62,432, which is nearly eight times as much as 1967. As for the cost of a car, that has increased to $30,000 on average, about eight or nine times as much as 1967 [source: Vlasic]. And you can forget going to the movies for a dollar as the average price of a ticket in 2011 was $7.93 — another eight-fold increase [source: NATO]. So, how is it that the cost of living and the salary you earn increased so much of the time period? The answer is because of inflation.
Gold V Stocks
It is important to state that gold, like any other investment both rises and decreases in value over time, but how does it differ from investing in stocks?
If we were to look at the value performance of gold verses stocks over the lifetime of the stockmarket, stocks have outperformed gold and other precious metals. However since the year 2000 that has changed dramatically as gold and silver performed far better than the Dow Jones Industrial Average.
Take for example the performance of the Down Jones Industrial Average from January 1st 2000 to January 1st 2015. The chart below will show you that there was a 62.91% change over that period. (You can check these figures yourself at Yahoo Money)
Now what that means in simple terms is that in January 2000 the market opened at 11,700 and on January 1st 2014 it closed at 17,823.07. This represents a return on your investment over that period of 52%. Quite a good return especially if you compare that to what you would get with the banks!
However let’s compare the same time period for gold.
As you see from the chart below, gold opened in January 2000 at a price of $283 an ounce and closed on January 1st at a price of $1,206 an ounce. This represents a return of 326%.
Quite a big difference compared to investing in stocks!
Here is why you should consider investing in gold
As we have shown above, like other precious metals such as silver and platinum, gold it is able to provide a higher capability of economical stability compared to paper money. This is due to the fact that paper currencies have a tendency to fluctuate in value rather than hold their value. As any economist will tell you, paper money can easily be manipulated whereas gold does have the historical evidence of maintaining its value and can go up even in the verge of difficult economic times. Now it is important to state that we are not saying that gold is a full proof investment, but it is one of the reasons why individuals look to gold as a way of retaining their wealthy status. Gold is one of the best ways to diversify your investment portfolio. Any quality financial advisor will tell you that the best way to limit investment loss is to not put all your investments in one basket but to invest in things that are not closely related to each other. Gold is very different from other types of investments such as bonds, stocks, and property and so by investing in gold you are able to automatically diversify your investment portfolio and reduce your level of risk whenever things take a down turn in the economy.
Who is buying gold?
In a recent article in Forbes (February 2015) China is currently buying more gold than the world can produce, and it doesn’t look like that is abating. The article mentions that China’s supply of the precious metal per capita is actually low compared to neighboring Asian countries such as Taiwan and Singapore. The article also says that The World Gold Council (WGC), in fact, calls China “a huge, relatively untapped reservoir of gold demand.”
But it isn’t just China that has a large appetite for gold. India too has a strong appetite for the metal with their consumption in 2014 being up 39% on 2013 and overtaking China, according to an article in the London Financial Times and which was repeated in a number of other news outlets. With the two largest nations in the world, by way of population, increasing their investment in gold, this naturally will drive the price up as demand is greater than production.
So What Are Your Options?
We have looked at the leading providers of gold, especially gold ira rollovers and we we have carried out an indepth review of them, looking at what the media, leading authorities and past customers have to say.What We found from our reviews of gold IRA rollover companies is outlined below. You can of course click on each one to see our more in-depth findings, or you can visit our gold ira review page for more details.
How have we conducted our reviews?
We wanted to make sure that the reviews we did were as independent and unbiased as possible, so we based our reviews on the top gold IRA providers, by focusing on the most important factors we could find – which in our opinion is third party evidence, especially from authoritative bodies, along with covering the based on the most applicable data you would need to enable yourself to make a full and proper decision.
You will see in the table below that we have covered 4 of the leading providers of gold ira rollovers. the table is based on four factors. These are:
- The companies BBB rating (click here for information on how the BBB rating works)
- The number of complaints registered with the BBB
- The companies Trustlink rating
- The BCA report
Which Gold IRA Rollover Company Do We Recommend?
We strongly suggest that you read each aforementioned reviews yourself to come to your own conclusion (click here to start), however we can advise you that based on the documental evidence we have found, be it from the likes of the BBB, Trustlink and the BCA report, or from further extensive research, we would recommend Regal Assets as the the number 1 choice for investing in gold IRA rollover. You can find out more about Regal Assets by visiting their website by way of this link, by ringing them directly on 1-855-628-9249 or by filling out the form at the side of the page and requesting a free information pack.