Wondering if Gold is a good investment for you? After some of the recent economic events, investors are much more cautious about where the put their money. Over the past decade, savvy investors have started placing more of their wealth in gold. Here are a few reasons why Gold may be the right investment for you.
Gold’s Track Record:
How did most mutual funds and stocks fare during the 2008 fall? Clearly, not too well. Yes, the stock market has started to rebound and show signs of improvement, but if you remember that year like most people do – it was borderline life-threatening.
Yet that year was a simply a blip on the radar for gold. Furthermore, from the close of 2008 until 2012 gold has almost doubled in value of price per ounce. Most investors would be hard pressed to say their stock market investments have seen similar growth.
The Political Environment:
With another presidential election on the horizon for the USA, gold may stand to see more gains. Gold prices can often be driven by fear and uncertainty in the economic and political arenas. This may sound self evident, however political stress often causes investors to look for a safe haven while the powers that be are voted into office. Precious metals (especially gold) are typically seen as this safe haven during this time. Take a look at what happened to the price of gold per ounce in the previous election years and you will see similar trends in those years.
Diversification of your wealth doesn’t just mean investing in a well diversified mutual fund. The whole point of diversifying is to protect your wealth from any major downturns in one area. If you own businesses, properties, stocks and precious metals then you are sure to weather any political or economic storm that comes your way. Gold is a vital component of the list above. The other investments listed are closely tied to how well the economy is doing at that given time. When our economy is flourishing then businesses, stocks and properties typically do well. However, when times are tough, these areas can quickly fall into a downward spiral. Gold acts as the great equalizer in diversification. Often when the economy takes a downturn gold holds strong and has a track record of growth shortly after these tough economic times. Consider gold as a good investment if you have not diversified your wealth enough to include this safe haven.
Adding Gold to your IRA
American Bullion specializes in adding gold to individual retirement accounts. If you have more questions about gold or would like to know more about your investment options, please call American Bullion at 1-800-326-9598 to speak with a Gold IRA specialist.