by Investing with a Gold IRA – Your hedge against stock market crashes or inflation
What is a gold IRA investments? Why not simply keep your money in an diversified portfolio of stocks, bonds and ETFs instead?
First, let us explain what gold means as an investment. Unlike equity investments like bonds and stocks, gold as an IRA is a commodity. This means that the owner of gold owns a tangible physical product with real value. The investor, on the contrary, owns a part of the company that issued the stock. Stockholders make money when they have stock in companies that increase profits and improve their business standing. This increases profit, which results in increased demand for stock. This causes the stock price to rise. Precious Metal Investors make money when the demand is high for precious metals. This leads to an increase in the “spot prices” of metals. You can choose the best gold IRA companies for you in this site.
Stock Market Outperforms Gold
In the past, the stock market has performed significantly better than precious metal investments. Precious metal investments have traditionally been viewed as a hedge for inflation and risk rather than as a profit-seeking venture. However, over the last 12 years, this fact has changed significantly: the Dow Jones Industrial Average has seen significant outperformance by silver and gold. Gold, after U.S. Treasury issue, has long been considered the best investment option for safety during times of economic uncertainty. Its price can often follow economic swings or market trends. It has proved to be an inflation-resistant asset because it retains its worth much more than currency-backed assets. These assets can fluctuate in price and value.
Protect Yourself From the Next Market Crash
Why would you choose to put your money into a Roth IRA or self-directed gold IRA investment? This fact was clearly illustrated in 2008, when the price for gold ranged from about $720 an ounce up to almost $980 an. Gold prices shot up as the stock markets crashed and economies fell deeper into recession. In times of anxiety, when investors need to keep their cash away from risky stocks markets, gold can do well.