Los Angeles, CA—As with any commodity, gold, platinum, and silver are subject to short-term fluctuations in their market prices. In the past three weeks, there has been a significant price dip in gold, silver, and platinum. This sharp short-term decline represents an unusual buying opportunity for investors who wish to add a percentage of gold or other precious metals to protect their retirement portfolio. What investors should be looking at is the steady upward trend over months and years.
The long-term price trend for gold, silver, and platinum has been steadily upward despite predictable short-term ups and downs. The graph below, which charts the gold price over the past year, represents a steadily-upward trend over time:
As the chart shows, gold increased by $340.70/ounce over the past 12 months, based on today’s closing price of $1,502.30/ounce. This “steady-upward trend” is what should matter to investors who wish to diversify their retirement portfolios by replacing a percentage of paper-denominated assets such as stocks and bonds with precious metals. This kind of value appreciation accurately depicts why converting a Traditional or Roth IRA that contains 100% paper-denominated assets into a new gold IRA makes very good investment sense.
For Investors, Gold IRAs Reduce Risk and Provide Good Potential Appreciation
Many investors have had to delay or even cancel their retirement plans because their Traditional and Roth IRAs have lost so much value. This has been especially true since 2008 as the global financial crisis devalued the U.S. dollar and other major currencies.
Many financial analysts love gold because unlike stocks, bonds, and mutual funds, gold never depends upon the performance of financial institutions for value. In addition, gold is not directly affected by inflation. Gold is consistently a stable safe haven during financially troubled times because it always retains a certain intrinsic value no matter where you are in the world.
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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.