Is a Gold IRA a good investment for your retirement? Here are the reasons why a Gold IRA is the best retirement investment.

Investing Gold IRAs: Your Protection Against Stock Market Crashes & Inflation

What is a gold IRA 401k? Why not just invest your money in a diversified bundle of stocks bonds ETFs, and other securities?

First, let’s clarify what gold means for an investment. Gold is an IRA Investment, and not equity investments like bonds or stocks. Instead of a commodity, the owner of gold owns a physical product that actually has value. A stock investment is an investment in equity. This means the investor has a stake in the stock issuer. Stockholders are able to make money when companies they own stock increase profits, or improve their business standing. This profits increase leads to a greater demand for the stock which in turn causes a rise of the stock price. Precious-metal investors make money when precious metal demand increases. This results in a rise in the spot price of metals.

Stock Market Outperforms Gold

Stock market performance has been superior to precious metal investments. These have historically been seen as a hedge of inflation and risk and not as a profitable investment. In the past twelve years, however, this fact has changed drastically: over the past year, gold and silver have significantly outperformed Dow Jones Industrial Average. In times when economic uncertainty is high, gold (after U.S. Treasury securities) has been the best investment standard for safety. Its market and economic swings often affect its price. Gold is a good investment during times of inflation as it retains its worth better than currency backed assets. These assets can increase in value but fall in price.

Protect yourself from the Next Market Crash

Why should you place your money in a Roth IRA for gold or a self-directed IRA for gold? This fact was easily demonstrated when the price for gold ranged between $720 to $980 an troy ounce in 2008. The price of gold rose sharply as the stockmarket crashed and the economy entered further recession. In times of panic, investors looking for safe places to store their cash after exiting a riskier stock exchange are able to find gold.

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