Gold Safe Haven In Troubled Times

HY GOLD IS THE GREATEST INVESTMENT FOR RETIREMENT PLAN
Gold is One of the best-kept secrets of a successful retirement plan is the significant advantage presented by the rather simple strategy of diversification of one’s retirement funds. The more one can hedge against the effects of a possible decline in the purchasing power of an entirely US dollar-based portfolio, the higher the probability that hard-earned retirement assets will be preserved mostly intact for the long-run

The US Dollar’s loss of purchasing power parity due to the effects of inflation has been a feature of US economic reality ever since the time of the Great Depression. Economic growth without inflation has been a noble policy goal. However, the methods used to achieve such growth have stimulated demand through the creation of large deficits and has resulted in sizeable increases in the money supply.

As a consequence, the Dollar’s purchasing power has declined throughout the years, and continues to do so. Have your IRA portfolio assets kept up with this insidious process of wealth erosion through inflation? This is why it is essential that a portion of your retirement nest egg should be placed into assets that are relatively immune from the negative consequences of a falling Dollar.

There exist a wide variety of precious metals, ,foreign currency, and real estate products that your retirement portfolio may contain. Such assets have historically offered a greater degree of diversification (in terms of asset classes and geography) and capital preservation potential than is normally available by investing only in ordinary, dollar-based assets such as stocks and bonds.

Gold, for example, has functioned as true money for nearly six millennia. Since the dawn of time, only about 145,000 tons of gold have been brought to the light of day. That figure, while seemingly quite large, represents a golden cube of less than twenty cubic meters! The remaining supply of gold available to mankind is a little less than half as much, or about 50,000 tons.

Gold is a finite physical asset that is accumulated, rather than consumed. As a result, virtually all the gold that has ever been mined still exists today in one form or another. Gold is simultaneously thought of as a commodity and as a monetary asset. Most commodities are consumed, or otherwise irretrievably lost. Gold, however, is accumulated –obviously, its main attraction appears to be that of a store of value.

Since gold cannot be printed at will, it preserves wealth better than most paper assets. Gold generally moves in the opposite direction of declining equities or paper currencies. Studies show that incorporating gold into a ‘normal’ mix of retirement assets tends to reduce the level of overall risk, may enhance overall performance, certainly adds an enhanced degree of liquidity, and it efficiently diversifies the portfolio.

Think of gold in your retirement account in the same way you think about owning a home or life insurance policy. It is a simple, yet effective means of buying peace of mind for the future. This is why gold for your golden years makes sense.