Why Your Investment Strategy Should Include Gold

With all the existing concerns about the US dollar dropping in value, the Dow taking a slide and now a possible breach of the United States financial obligation ceiling, you have to be questioning;

“How the hell do I protect the value of my existing investment profile?”

The apparent option is to transform some of your holdings into precious metals, however if you’re a conventional stocks and bonds man, you could have your doubts about the validity of investing in gold. At first glance it doesn’t seem to make sense, as unlike traditional paper-based assets like stocks and bonds, gold has no capacity to generate any profits, it doesn’t pay any dividends whatsoever, and the supply and demand is controlled by goldmines tearing it out of the ground. Compared with other more common resources like oil or steel, it is only utilized by a relatively small number of industries — namely jewellers, dental prosthetic services, general manufacturing and electronics industries.

However, what makes gold different to all the other more traditional investment classes is its intrinsic value. Gold is an outstanding alternative as a type of currency as it is constantly in demand, it can be easily divided, it is challenging to extract and refine, it does not rust or degrade and finally, it looks just beautiful. All throughout history, gold has constantly and consistently been used as a form of currency, it was a searched for commodity and it held a specific amount of intrinsic value for it’s uses. And it’s that specific intrinsic value that is the basis for it’s worth as a type of currency.

Gold is an exceptional choice as a form of currency as it is constantly in demand…

ancient gold coins

Ancient gold coins

For hundreds of years, gold has been extremely valued for it’s versatility in making jewellery, however, it has likewise been made use of as a means to establish value. In today’s society, gold still holds this intrinsic value and is utilized in investment portfolios as a stable source of value to shield against inflation. That’s probably the single most important reason why the most experienced and successful investors usually invest in gold not as a way of getting rich, but as an ingenious yet simple method to diversify their profile and shield the value of their assets.

The primary need to include at least some portion or a specific amount of gold in your profile is that with time, this gold ought to maintain it’s value and be worth roughly the very same amount over an extended period of time. This is especially useful in times of inflation where the cost of gold per troy ounce will rise, however on the whole the value of the gold is staying the very same over the very same duration. The general concept for that reason, is to acquire less gold when costs are on the increase, and get even more when prices are on a downward trend. However it is vitally important to take the emotion out of this procedure and follow a detailed financial investment method of developing your portfolio using this technique.

So just how much gold should a normal conservative profile be holding?

Well, for investors who are planning for the long term, specifically those who are rolling over their existing retirement funds into dedicated gold IRA accounts to invest in gold, it is usually accepted that around 5– 10 % of your profile is made up of physical gold. Preferably, this gold should be held as a diverse array of forms like physical gold (bars and coins), gold ETFs and shares in gold mining business. Reeves Jameson’s popular evaluation site http://thegoldirareviewer.com has some really informative posts which discuss in detail the numerous gold Individual Retirement Account investing strategies available to investors.

Just to re-iterate– this approach is NOT for those looking to get rich fast. This is a simple yet very reliable method for maintaining the value of your assets and keep it growing at a rate above inflation. History has revealed gold to be an excellent, time-proven safe-haven asset that will secure your portfolio from the ravages of currency devaluation and inflation.

So, as mentioned above, it’s highly recommended that you engage the services of an experienced precious metals IRA company to help you rollover your existing retirement account into a gold IRA. So go ahead and take a look at Reeves Jameson’s Gold IRA Reviewer website for the latest reviews of the best gold IRA companies.