Investing In a Gold IRA: A Hedge Against Stock Market Crashes And Inflation
What is a Gold IRA Investment? Why not keep your money in a diverse bundle of stocks and bonds or ETFs?
Let’s start by explaining what gold is. Gold is an IRA investment and is different from equity investments such stocks or bonds. The owner of gold has a tangible product, something with actual value. On the other hand, equity investments mean that the investor holds a share of the company that issued stock. Stockholders can make money when their stock is used to increase profits or improve business standing. This increase in profits results in a higher demand for the stock, which causes a rise in its price. Precious metal investors make more when demand for precious metals increases. This causes the “spot price” of metals increase. You can choose the best gold IRA companies for you in this site.
Stock Market Outperforms Gold
The stock market has outperformed precious-metal investments in the past. They were considered a hedge against inflation and risk, rather than a profit-seeking asset. Over the past 12 years, this has changed dramatically: silver and gold have outperformed the Dow Jones Industrial Average. In times of economic uncertainty gold has always been an investment standard for safety (after U.S. Treasury bonds). Its value often follows economic and market movements. In times of inflation, gold has been a safe haven because it holds its value better that currency-backed assets which can drop in value but climb in price.
Protect yourself against the next market crash
Why should you invest your money in a self managed gold IRA, or Roth IRA gold investment? This was evident in 2008 when gold prices ranged from $720 per ounce to nearly $980 an ounce. The gold price soared as the stock market collapsed and the economy plunged further into recession. When investors are anxious or looking for a safe investment to protect their capital from a volatile stock market, gold prices do exceptionally well.