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Q2-2012 Macroeconomic Themes For Gold And Your Self Directed IRA

The World Gold Council recently published their quarterly update for gold. There are some clear macroeconomic themes that have become obvious:

  • Gold prices declined relative to most world currencies, but gold was up 4.4% during the first half of the year. Volatility remained elevated amidst a busy event-risk period. In general, gold outperformed what would be considered risk assets.
  • Global inflation appears to have eased, but the overall picture is still supportive for gold. There was a substantial decrease on commodity and agricultural prices which did put downside pressure on gold.
  • “Risk free” assets are under pressure. Traditional, safe haven, low risk investment are under pressure. This is helping to make gold look more attractive dues to its lack of credit risk, liquidity, and hedging characteristics.

Implications for your self directed IRA

What these macroeconomic trends and themes show is that despite the lack of recent price movement in gold, gold is still in favor and may be moving to a more favored position relative of to all other asset classes. This latest World Gold Council report clearly supports the case for holding precious metals in your self directed IRA. So, check you portfolio allocation in your self directed IRA and position is accordingly.

The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.