I have been watching gold and silver for the past 5 years since clients started using their IRA funds to invest in precious metals. When I started gold was trading for around 1000 spot and silver was trading around $10.00. Over the past 5 years gold has gone as high as 1889 and silver as high as $48.49. Today gold is trading around $1350 an ounce and silver is trading around $20.00 per ounce.
Why should you invest in metals, haven’t we already seen a peak in metals, its been going down over the past couple of years, why would it go back up? The truth is that none of the fundamentals of why clients invest in metals has changed since I started investing 5 years ago. Below are some reason why you should invest in gold and silver inside your IRA.
- Over the past 10 years gold and silver have been in an upward trend, even with the recent dip in the market (chart from Sharelynx.com).
- Although gold and silver are higher than they have been in years past, we are nowhere near a top when you consider gold and silver adjusted before inflation.
- As gold and silver increase in price, all other currencies keep on decreasing. Gold and silver typically move in the opposite direction of the US dollar. As the dollar increases, gold and silver decrease. The chart below shows that currencies have been going down in value since 1985. (chart from: research.slouisfed.org. Source: Board of Governors of the Fed)
- The central banks have begin to hold more physical metals and have even become net buyers of gold.
Gold and silver have currently taken a dip in the market and are trading at a 2 year all time low. If history repeats itself we are just starting stage 2 of a typical 3 stage bull market (stage 2 is when there is a temporary pullback in the market before the price continues in an upward trend.
Today is an excellent time to purchase gold and silver through a self directed IRA. If you have any more questions feel free to comment.
Author: Ben Barker, Self Directed IRA Professional