- May 20, 2011
- Category: Retirement
Los Angeles, CA — On April 30, the market price for gold was at $1,576.30. Today, on May 19th, it has dropped $83.20/ounce to $1,493.10. This is a familiar short-term dip and most experts agree that gold, silver and platinum will turn around shortly to reach new record highs. For investors who are wisely considering adding a percentage of precious metals to diversify their paper-denominated assets, right now is a great opportunity to buy during this price dip.
Gold, silver and platinum, which have always been considered excellent investment assets, provide a safe haven from financial, social, political or fiat currency crises. These include declines in investment markets, exploding national debt, currency devaluation, war, social unrest and rising inflation. In fact, gold’s price performance, in particular, compared to currencies during our ongoing financial downturn makes it especially desirable.
Numerous Factors Influence the Price of Gold, Platinum and Silver
Like most commodities, the price of gold depends mainly upon supply and demand. Nevertheless, unlike other commodities, the saving and disposal of gold has a greater influence on its price than consumption does. Most of the gold ever mined still exists as bullion and manufactured jewelry. The price of gold is also influenced by the International Monetary Fund and Central Banks, with just under 20% of all existing gold being held in official gold reserves.
The U.S. dollar, along with other major currencies, has been under heavy pressure due to growing government deficits. As more money is printed and pumped into our economies, the more devalued those currencies become. This also reduces the value of paper-denominated assets such as stocks and bonds.
Since 2007, Many Investor Portfolios Have Taken Serious Losses
Many investors with retirement assets in 401(k)s, Traditional IRAs and Roth IRAs have watched their value being seriously eroded since late 2007. This economic crisis, which has placed their retirement in jeopardy, has prompted an increase in the number of investors who are now adding a percentage of precious metals to their retirement funds. Since the return on stocks, bonds, equities and real estate has recently been unable to compensate for risk and inflation, the demand for precious metals has been on the rise.
New Gold IRAs Have Become Popular to Protect Retirement Assets
American Bullion’s customer base of investors who are buying gold, silver and platinum has been steadily increasing each month. Some of our customers have been purchasing gold coins and bars to lock away in their safe deposit boxes, but many others have wisely opted to roll over 401(k)s and convert Traditional and Roth IRAs to a new gold IRA.
While many advisors recommend that investors diversify their retirement assets by adding between 5% to 25% in gold, many are now adding a much higher percentage. In fact, a few have even converted their portfolios to include as much as 50-100% in precious metal assets.
Our Gold IRA Specialists Make Opening a New Gold IRA Fast and Easy
American Bullion offers a staff of Gold IRA Specialists to help customers convert some or all of their existing paper assets into precious metals. This process is 100% tax free. Our Gold IRA specialists make the entire process simple, secure and hassle-free. We stand ready to help each new investor develop a custom gold IRA that best suits their individual needs.
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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.