Los Angeles, CA — These days, gold and other precious metals have become recognized as the best possible protection from financial, social, political, or fiat currency crises. There are major risk factors of paper-denominated assets which include declines in investment markets, exploding national debt, U.S. currency devaluation, wars, social unrest. and inflation.
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 $1,540.70 at the market’s closing on on Tuesday, June 7th, 2011.
Various Factors May Affect the Price of Gold, But It Never Loses Its Intrinsic Value
The price of gold depends heavily upon 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 value than consumption. Nearly all of the gold ever mined still exists as bullion and manufactured jewelry.
The U.S. dollar has been under heavy pressure because of our government’s growing deficit. As more money is printed and pumped into our economy, the more devalued the U.S. dollar becomes. This also reduces the value of paper-denominated assets such as stocks and bonds which are directly connected to the value of the dollar.
Many Retirement Portfolios Have Lost Serious Value Since Late 2007
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 has motivated a steadily increasing 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 have taken a recent downturn, the demand for gold and other precious metals has been continually increasing.
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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.