Investing in a gold IRA can be a great way to diversify your retirement portfolio. One of the great things about investing in a gold IRA is that you are actually investing in a tangible investment. When you invest in stocks and bonds you are basically investing in a paper asset. A paper that says you own stocks in whatever investment you have chosen. When you invest in a gold IRA you actually own real gold. If for whatever reason the stocks that you have invested in drop to being worth nothing you then you are out money and have nothing for that $0. If you buy gold and it theoretically drops to being worth nothing you will still have that physical gold to show for your investment.
This is just one of the reasons why a gold IRA is a great way to diversify your retirement portfolio. For those of you who are interested in a gold IRA, let’s take a look at what the outlook is on gold right now.
The truth of the matter is that gold is in a bullish market. Many gold investment professionals thought that 2014 would have a decent return, especially compared to the dollar but that didn’t actually happen. In fact, price per ounce from the beginning of 2014 to the end of 2014 dropped from $1206.08 on January 1, 2014 to $1184.32 on December 31, 2014. While most gold investment professional thought that 2014 would bring home a decent return for gold it just didn’t happen. That is ok though. Why is that ok?
Over the years I have come to realize what most investment professionals have been saying for years, regardless of the industry that you are investing in, it is hard to time the markets. Whether buying stocks, bonds, real estate or gold, knowing when the low or high is for any industry is virtually impossible. We can look at history and a handful of metrics to give us a good idea of where we are at but that’s all we get, a good idea.
Because it is so hard to time the markets I don’t worry about doing it. Instead I first just make sure to be investing in the markets. The likelihood is that the markets will go up. For the past 10 years gold has gone up most of the time. So I figure to stay in the market, because most of the time my investment will gain. The other thing I like to try and do is to buy cheap investments. We know that stocks and bonds are way overpriced and that potential earnings aren’t great if you invest today (at least that is what historical stats tell us) So it is probably best to wait until stocks and bonds aren’t so overpriced. That is where gold comes in.
While we don’t know what the future holds for gold we know that we are near lows that we haven’t seen for the past 5 years. Compared to the past five years it is reletively cheap. Again, will it go up tomorrow or in the next few months? Only time will tell. If it were me, I would buy at good prices and hold for as long as needed because I think eventually the price will go back up.
Contact us for any more information about gold IRAs or about setting up your own gold IRA account.
Author: Nick Barker