- July 7, 2011
- Category: Retirement
Gold has always been considered a safe-haven investment. These days, it has become recognized as the safe haven against financial, social, political, or fiat currency crises. These include declines in investment markets, exploding national debt, war, social unrest, and inflation. Right now, precious metals are rebounding from a sharp dip and are predicated to reach new record highs in late 2011. Thus, adding a percentage of gold, silver, or platinum into a new Gold IRA makes very good sense for forward-looking investors.
Ever since President Nixon removed gold as the backing for the U.S. dollar, its market price has steadily appreciated from the $35.00/ounce it was then to the current price of $1,528.20/ounce at mid-day on Wednesday, July 6th, 2011.
Diverse Factors Affect the Price of Gold
The price of gold is very dependent on supply and demand. It is also affected by market speculation. However, unlike other commodities, the saving and disposal of gold has a larger effect on its price than consumption does. Nearly all of the gold ever mined still exists as bullion and manufactured jewelry. This makes it capable of being returned to the market for the right price.
The U.S. dollar along with other major global currencies has been under heavy pressure because of government deficits. As more money is printed and delivered into economies, the more currencies become devalued. This devaluation, in turn, reduces the value of paper-denominated assets such as stocks and bonds which are permanently connected to the value of the U.S. dollar.
Many Investor Portfolios Have Lost Serious Value Due to Currency Devaluation
Too many investors with retirement assets in 401(k)s, Traditional IRAs, and Roth IRAs have watched the value of their plans erode since late 2007. Seeing this economic crisis place their retirement in jeopardy is motivating a steadily-growing number of investors to convert their familiar IRAs to new Gold IRAs as a hedge against inflation and currency devaluation. Because the return on stocks, bonds, equities, and real estate has been unable to compensate for losses due to devaluation and inflation, the demand for gold has been continually increasing.
Creating a New Gold IRA as an Investment Strategy Makes More Sense Than Ever
According to Orkan Ozkan, Head of Business Development at American Bullion:
“Our customer base of investors who are buying gold has been increasing significantly each month. Many of our customers have been purchasing IRA permissible bullion gold coins and bars to lock away in their safe deposit boxes. However, many others have chosen to roll over 401(k)s and convert their Traditional and Roth IRAs to a new Gold IRA.
While it’s true that many financial advisors recommend that investors diversify their retirement assets by adding between 5% and 15% in gold, silver or platinum, many have chosen to add a much higher percentage. In fact, a few have even chosen to make their portfolio include 50% or more in precious metal assets.
The trend is clear! American Bullion anticipates that our customer base will continue growing through 2011 and 2012 as more and more investors convert a percentage of their paper-denominated assets to gold.”
We’ll Help You Set Up Your New Gold IRA Quickly and Easily
American Bullion always has a staff of Gold IRA specialists ready to help customers convert some or all of their paper assets into IRA permissible precious metals. There are no tax penalties and no new fee requirements when you make this conversion. The Gold IRA specialists at American Bullion make the entire process simple, secure, and completely free from hassles. They are always ready to help each new investor develop a custom Gold IRA that best suits their individual needs and financial circumstances.
Investors can either take physical possession of the gold now, or use American Bullion’s Trust Company, Self-Directed IRA Services, Inc., to store their metals in an IRS-approved secure depository until they wish to do so.
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American Bullion specializes in adding gold and silver to retirement accounts. If you have a question or would like to know more about your investment options, please call American Bullion at 1-800-326-9598 to speak with a precious metals specialist.