However, people still love the yellow metal. Clearly, a big part of demand comes from the jewelry industry -- we all like nice baubles and trinkets. But a notable amount of demand comes from entities that want to own gold in its physical form via coins, bullion, and bars. That stems largely from the economic history of gold and the resulting view of the metal as a safe-haven investment. If paper money were to suddenly become worthless, the world would have to fall back on something of value to facilitate trade. One of the most logical options is gold, since that was the role it played before fiat currencies ruled the day. This is one of the reasons that investors tend to push up the price of gold when financial markets are volatile.
Advisors watching the U.S. stock market have shared concerns for the current long-standing bull market. These concerns include, but are not limited to: weak global market growth, slow U.S. GDP growth, an aggressive Fed, over-valued stocks, and a U.S. national debt increasing at almost $50,000 per second. But again, current global forces are strong enough and sporadic enough to create sudden and potentially cataclysmic economic fallout.
Gold is a timeless investment to protect your wealth. A time capsule from any century is sure to include gold coins or bullion. Discover the security and pride in ownership for yourself. Pool your resources and make an important decision about your financial future. Talk to a knowledgeable professional at Money Metals Exchange by calling 1-800-800-1865 today to learn how to buy gold bullion for greater financial security. We take pride in offering outstanding service, great pricing, and fast delivery times to everyone – from novice buyers to sophisticated investors.
Investors became more interested in gold IRAs After the financial crisis in 2008, which brought about a recession. In October of 2007, the stock market hit its pre-recession high, then by March of 2009, the market lost 50 percent of its value, and investors’ retirement portfolios reflected this significant drop in value. Gold prices move in the opposite direction of stock prices, so gold IRAs became a reasonable hedge against inflation. These IRAs are useful for portfolio diversification and for anyone who is concerned with economic and world news that might cause another stock market drop.
For all these reasons, it's easy to jump to the conclusion that gold is an unsafe investment. Which would be true if the only thing you owned was physical gold or gold-focused mutual funds and exchange-traded funds (ETFs). If you use gold as part of a larger, diversified investment plan, however, it is not only safe to own but can provide you with positive returns when the rest of your portfolio is struggling. Here's why gold can be a safe investment, when used the right way.