Why You Decided to Buy Gold
With instability and uncertainty in the economy, more
investors are looking at alternatives to the usual stocks, bonds, and mutual
funds. More investors are becoming interested in precious metals, especially
gold, as an opportunity for diversifying their investment portfolios. One of
the factors driving this interest is the fact that many experts believe that
gold at present is much undervalued. Some have been making claims that its
price could rise by another 50%. Since 1999, the price of gold has risen over
500%. For those investors considering moving some of their portfolio out of the
volatility of the stock market they will be reassured to know that over the
last 10 years gold has outperformed the market by 400%.
Rising Debt and the Shrinking Dollar
Imagine what a diminishing dollar is doing to the value of
your retirement portfolio and the effect it can have on your future income.
With the stock market riding at record levels and the national debt ceiling as
high as it's ever been, it would seem that a strong market correction is in
order. Whether this amounts to a strong correction or a full-scale meltdown
remains to be seen. What no one wants to see is a return of what happened in
2008 when retirement accounts lost $2 trillion in value in only 15 months.
The smart investor knows the value of diversification. Based
on recent history, gold - and more to the point, gold coins in a gold-backed
IRA - would seem to be one of your more secure investment choices.
Coins or Bullion?
Most people think of gold bars when they think of gold. It's
usually how gold is represented in the movies. Gold coins can be a simple and
efficient way to invest in gold for the large-scale investor. For the rest of
us, gold bars are not as flexible when it comes to selling. The buyer's choices
are more restricted as a seller will need to find a large dealer. The pool of
private buyers will also be smaller as most people are not familiar with gold
bullion bars.
Gold investment coins, on the other hand, are available at
very competitive prices compared with similar size bars. Because gold coins in Vienna are almost
universally recognized, they are also easy to resell.
