Is Gold Money And How It Impacts Your Self Directed IRA

Americans feel “gold is the safest long term investment” today, a Gallup survey has found. Gold was favoured over four other types of investments perceived as the best long term choice for American investors today. 28% of the American public choose gold as their favoured investment of choice today.

Real estate followed in second place, with 20% seeing it as the best long term investment. Paper assets were less popular with savings accounts and certificates of deposits (CDs) tied with stocks and mutual funds at 19%. Bonds came last at 8%.

What’s confounding about this finding is that Ggold ownership remains very low amongst the public in most of the western world.

The poll’s findings suggest that this may change in the coming months and years. While surveys often show that people are favourably disposed towards and instinctually trust gold, there remains a massive lack of knowledge about how to “invest in” or buy gold for financial insurance reasons. This lack of knowledge and awareness leads to the low levels of gold ownership in the western world today.

Now, compare this gallup poll and the average American’s thought process to what the media, the Fed Chairman and Warren Buffett say about gold. This faith in gold persists despite the public statements of investment gurus such as Berkshire Hathaway CEO Warren Buffett or economists such as Federal Reserve Chairman Ben Bernanke that scorn gold on the basis that “it doesn’t produce anything” or does not yield a return.

What gold does do is provide a store of value that offers hope for future prosperity to those  who otherwise despair of watching the value of their paper currency erode. Money, unlike currency, has value within itself. Money is always a currency, in that it can be used to purchase other items that have value, but as we’ve just learned, currency is not always money because it doesn’t have value in and of itself. If you are having a hard time grasping this, just think about a hundred-dollar bill. Do you think that paper is worth $100?”

Gold has all the properties of currency but has one important differentiator—it is a store of value over long periods of time.

What does this mean for Self Directed IRA Investors

What these facts and American sentiment shows is that gold is money, not the US dollar. We know that the government has and will continue to debase our currency buy printing more dollars to address deflation, lower taxes and the increase debt. This is a clear sign for movement to precious metals in your self directed IRA.

Disclaimer

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.

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