Avoid Financial/Economic Pitfalls with a Gold IRA

by James Hendrickson on November 27, 2012 · 4 comments

And now for a word from our sponsors…

The Truth About Gold

Gold is not a controversial, anti-establishment investment. In fact, gold and other tangible assets, such as silver, platinum, and palladium, are regularly purchased by governments and central banks to shore up failing currencies. In 2011, the world’s central banks purchased nearly 450 tons of gold, a one-year increase of 470% and the highest figure since 1964. In emerging and developed nations around the world, gold is recognized as a stable, durable, and predictable asset. And according to the World Gold Council, the global demand for precious metals, spurred by the unprecedented growth in China, India, and Brazil, could cause the price of gold to climb as high $2,500/ounce in the coming years.

The global demand for gold may be soaring, but the supply of gold has failed to grow apace. In 2011, while demand swelled nearly 500%, global gold production increased only 4%. Production of numismatic gold coins and collectible coins produced by governments and central banks has all but ceased. Meanwhile, the price of gold continues to surge. Owing to the labor- and time-intensive processes of mining and refinement, gold production is relatively inelastic. Global stores of gold will never “dry up,” but the price of gold could reach stratospheric heights as currency devaluation and rising inflation threaten to undermine financial markets in the U.S. and abroad. For that reason, American investors are in a unique position to profit from a Gold IRA.

The Oldest and Most Reliable Asset in the World

Throughout the historical era, gold is the only asset that has never flopped or folded, at any time, in any country. The value of gold fluctuates, but it has never been zero. When stocks and bonds are down, gold-backed assets surge in value, but the purchasing power of gold has remained remarkably stable for hundreds of years.

At thousands of locations around the globe, dealers and traders are buying and selling gold 24/7. Today, gold can be purchased in a variety of forms, either as a durable asset (bars, coins, and jewelry) or a paper commodity (Exchange Traded Funds and gold futures). Gold is simple to store, easy to transport, convenient to hide, and highly liquid.

Any gold-based asset can provide benefits for investors seeking to diversify their capital assets, but the uniformity and quality of numismatic gold coins makes them especially attractive to consumers and collectors. Government-backed gold coins are produced according to rigorous standards of purity, refinement, and precious-metals content, and their value is certified and guaranteed by the issuing body, typically a federal mint. Unlike solid gold bars, coins can be purchased or sold piecemeal, providing new investors with additional flexibility.

To learn more about how you can diversify your portfolio with a Gold IRA, contact Lear Capital online at www.LearCapital.com, or call toll free 800-576-9355.

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{ 4 comments… read them below or add one }

1 MJ December 2, 2012 at 10:25 pm

I stop taking any blog seriously that becomes a mouth piece for the gold industry. Gold is an absurd investment, and even if it were a good investment, it’s a bubble right now. Have people not learned to avoid buying when the price of something is at record highs??

Do the owners of this blog really need money so badly as to be a mouth piece for dicey industries like this??? I prefer financial blogs that have ethical screens on what advertising they take. Based on the endless ads on this site, I’m assuming your main goal is to just earn as much as possible with few other considerations.

2 James December 2, 2012 at 10:42 pm

Hi MJ,

Thanks for the note. We own approximately $12,000 worth of precious metals (about 3 oz of gold & some silver) and feel it has a place in a well diversified portfolio.

Best,

James

3 Jonathan K. December 11, 2012 at 10:19 am

I also think that this is the best thing to do given the current economic climate. I don’t see the US dollar or Euro gaining any weight in 2013!

4 gold investment funds June 6, 2015 at 12:49 pm

I am in faft thankful to thee holder of this web page who has
shared this enormous piece of writing at at this time.

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