Secure You're Wealth with Gold & Silver
One of the best ways to protect yourself against inflation is with Retirement Gold, but you might ask yourself why? Inflation in the U.S is at present out of control, there are good controls and measures in place to make sure everything makes its way back on-track, but with a fiat currency not backed by anything substantial, that can be inflated to meet the demands of debt repayments that the U.S.A has, it’s a volatile economy, that without any diversification in your retirement savings plan, could leave you in a position of financial weakness, retirement gold is a good security against this and places you in control.
The reality is your retirement savings could take a significant devaluation if they are all pegged in traditional savings and investment plans, it would be foolish to place all your eggs in one basket, but having a diversified portfolio, particularly with retirement gold as an option, is a good fiscal safeguard against the decisions of the federal reserve, politicians and what they decide to do to combat the growing debt scenario.
Things such as paper money savings plans, stocks, bonds and mutual funds are all susceptible to the effects of inflation and hyperinflation, all of which are out of the realms of control of the average citizen, by having a portion of retirement gold, you can secure a percentage of your wealth, ensuring that it can survive any of the financial storms that might emerge over the coming years.
There is much that can be said on the matter of gold as part of a retirement portfolio, but if you boil it down to a few key points, it’s very easy to see that having a percentage of your retirement funds invested in gold is a good idea.
Breaking Down the Facts
Invest In You're Future
It does not matter if you are in your, 20's, 30's, 40's, 50's or approaching retirement, the returns on investment in today's financial climate when you decide to invest a percentage in retirement gold will always yield positive returns, for example...
If you had invested a mere $33,000 worth of your retirement funds into gold in 2001, today it would gross a value of around $129,551, and if you had done the same in 1971 when the gold standard was abandoned, your investment in gold would be worth $1,115,000 today.
Retirement gold and precious metals put you in control, if you were to diversify your portfolio tomorrow? You would only stand to gain, because as more money is printed, and inflation and hyperinflation continue, the worth of your investment increases, but even should the economic situation stabilize, your investment would still retain its worth because of the intrinsic value of gold itself, having gold as part of your retirement portfolio is quite honestly a win win situation.
And governments know of this, which is why China & India have spent heavily over the past decade investing and purchasing gold to act as reserves for their own currency, with China alone purchasing over 52% of the world’s gold supply in 2010 and why? Because it only stands to increase its value, strengthening their economy in times of financial crisis.
Diversify You're IRA
Since the abandonment of the U.S gold standard by President Nixon in the 70's the economy has indeed flourished, but at the cost of an unprecedented amount of debt, the effects of which are now starting to be felt today.
By diversifying part of your retirement portfolio into gold, for every bar, coin and silver bullion you purchase puts you in control of your own financial destiny, allowing you to not only achieve the retirement dreams you have always had, but make sure that your plans are not interfered with by short sighted governments and their fiscal decisions.
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.” - Alan Greenspan
Retirement gold gives you the power to be in control of your own financial destiny, and acts as a safeguard against having your hard worked and lifelong dreams evaporating overnight because of economic and political decisions, it’s a shield, and one that every citizen should have, for if every citizen had a percentage of their wealth in gold, the fiat paper currency may flat line, but the nation would stand, as its people, the power, as it has always been, the tired, the poor, the hard working, could support its shoulders through their own financial efforts, that sadly, the government has forgotten, much to the lament of the founding fathers.
Gold, Inflation & The U.S. Economy
Gold, from the edges of the universe and collapsing stars, across the sands of time and the rise and fall of empires it endures, inspires and creates.
Yet what is it that causes it to be any more or less valuable than anything else?
While certainly long desired for its aesthetics, gold has and retains its intrinsic value as a result of its versatility and is used in the production of industrial goods, domestic products and of course, luxury commodities.
As a result of its practical uses this gives gold real value, combined with its natural scarcity and the fact that despite however plentiful, it is still a finite precious metal, this not only gives gold its monetary value, but also retains it and stores it.
With nothing negative to say about other assets and investment options which as part of a diversified portfolio do have their own particular merit, gold is a little bit different...
The key point of differentiation being that traditional investment vehicles such as stocks and bonds exist holding their value within the existing economic landscape, that which is operated and maintained by a series of economic instruments and procedures, but because these instruments and procedures by their very nature are artificial social constructs, they in and of themselves have no real value outside of the framework of what is mutually agreed upon and the financial instruments that regulate and maintain them.
Supply, Demand & Value
The value of the dollar, is dictated by how much is in circulation, and the circulation, (by means of fiscal instruments and procedure), regulated by the demand, what this means is that procedure and consolidated parties oversee the governance of the economy in its areas of aspect, which in and of itself is not necessarily a problem, until one of the particular economic instruments known as debt is factored into the equation, be it obtained by political or private oversight, which combined with such a framework of procedure can only by its very process create economic inflation as the financial instruments attempt to balance the equation.
This leads to the devaluation of the dollar, thus requiring more dollars to resolve the issue of debt, creating a spiral affect that over the spectrum of time appears to be balanced on paper, but is equalized to itself, however eventually reaching a point at which the instruments can no longer balance the debt equation to the inflation equation, rendering the dollar in and of itself in its modern form with no value or purchasing power because it is in and of itself in a contemporary sense an artificial social construct.
Gold is not like this, but why?
Gold is not itself currency, it is a precious metal that because of its potential applications and its finite amount, combined with the associated requirements for procurement, can be used as a form of currency...
And used as a currency it has been from as far back as ancient Egypt, through to the height of the Roman Empire and even used to back the dollar of the United States of America up until the abandonment of the gold standard, which is where the problems of inflation in the contemporary US Economy start to become a problem when combined with the over usage of the printing press.
Gold Investment is Not a Conspiracy
It needs to be addressed that often the subject of why the United States of America abandoned the gold standard and the long term economic results that had on the U.S Economy often get caught up in a variety of conspiracy theories of wide arching reach, with no disrespect to any opinions and with full advocacy to the ideals of freedom of thought and expression, the reality is, the subject has nothing to do with that, and the reason it is often found included in discussions of conspiracy and similar as it relates to the contemporary U.S politics is because of a psychological phenomenon known as confirmation bias, where by a problem is seen and through the absence of a solution or understanding a reason is applied which seems to be a logical correlation but actually has no direct relevance at all.
Not to be said that conspiracies and political agendas have not and do not occur throughout time, one needs only to review history books to see this, but when it comes to the abandonment of the gold standard and the long term outcomes of what that meant, the reality is it was simply a case of poor political decisions and congressional oversight with a short term view that in and of itself was unconstitutional, that caused to give rise to the fiscal climate affecting the value of the U.S. Dollar today.
Implicated and associated with other subjects the topic of gold may be, it is only as a secondary aspect, where as it relates to the subject of its usage as a currency, store of wealth and security against inflation when used to back any alternative form of currency, the subject is strictly one of finance and by no way to be considered a conspiracy.
Investing in Gold & Silver Bullion
By rolling over your IRA into retirement gold & silver, you gain control over your own financial security, with gold you can hold you no longer need to be concerned about the effects of inflation and deflation on your already existing fiat paper currency savings because precious metals as a result of the intrinsic values they hold are a natural hedge against inflation and store of wealth in economic terms.
While in the shortfall inflation, hyperinflation and the devaluation of the dollar might not be of much concern when it comes to the day to day, week to week expenditures, but when it comes to your retirement savings, which you spend your entire life working for and accumulating every day, the effects of inflation come into play in quite a significant way, with long term affects potentially devaluing your existing savings by thousands if not hundreds of thousands of dollars depending on the evolution of the economic climate, retirement gold in contrast not only guards against inflation, but gains in wealth as a standalone investment option.
But if you’re not familiar with retirement gold, initially the concept may seem overwhelming, with so many different types of bullion, coins and metal types, how can you be sure that your making the right investment decisions?
For all the differences in metrics, designs, hallmarks, values and rarity, when it comes to assessing metals and understanding what you are looking at as an investment option for retirement gold, it’s important to understand that for all the finer points, the core areas can be reduced to the metal types themselves and the means on which they are appraised in order to determine their financial value.
Types of Precious Metals
The most common types of precious metals that you will encounter are Gold, Silver, Platinum and Palladium, you may encounter them in the form of bullion bars with the familiar brick or rectangle design or alternatively in the bullion coin design which may at times have additional value and rarity associated depending on the year of mintage, amount of coins minted and the hallmark designs on the coin themselves.
However be it bullion bars or bullion coins, despite the latter having a few additional considerations, at core value both are assessed and valued based on the purity of the metal content, while in the past quality was known to vary greatly, today most modern minted bullion bars and coins generally always retain a high percentage value of quality, with that said though there still are differences so it’s important to be aware of what you should be looking for when considering investing.
Precious metals are weighted by what is known as the Troy Ounce (1oz) , which roughly equates to 31 grams, the weight combined with the purity of the metal content itself is what determines its value, the commonly used phrase is known as “good delivery status” generally referring to a bullion bar or coin that has a purity content of over 90%, meaning that the production holds 90% gold content, while the other 10% may be comprised of other metals and alloys for the sake of hardening the end product.
Quality & Purity are Key
Taking this into consideration, exceptional investments would be considered to fall within the range of 95% to 99% fineness, however do not be concerned looking for a mythical 100% purity coin, as a result of the manufacturing process, alloys are always added, even if in small amounts to ensure the bar or coin retains durable, particularly in the cases of gold and silver as by themselves they have a tendency to be very soft metals, the addition of the alloys ensure they retain their shape and in turn protect the quality of the metal over all, ensuring it retains its wealth by not chipping, cracking or otherwise losing its shape and causing degradation to its metallic content.
When assessing bullion bars be they gold, silver or otherwise, in addition to taking note of the purity content, which should always be visibly imprinted on the metal bar itself, you also want to ensure that it bares the hallmark or logo of the mint that has produced the metal, in addition to a serial number, this ensures that it is legitimate and will greatly assist in assuring you obtain the highest price possible for your investment should the time come you ever wish to exchange a portion of it back into paper currency, if a bullion bar does not have the purity percentage, mint hallmark and serial listed on it, always consider this a red flag and avoid the investment.
This is not to say bullion bars of exceptional quality do not exist without such marking, but they are often historical artifacts or anomalies, the result of either salvaged treasures from antiquity or perhaps war holdings and while an interesting commodity that may deserve a place in a collection, and interesting subject matter themselves, these are not what you would be looking to have in your retirement gold portfolio, as they may not be suitable for sale, or quite possibly simply be black market frauds, so ensure you always make safe, sound and secure investments by assessing the required traits on bullion bars.
Always Make Sure its Good Delivery Bullion
As it comes to assessing gold or silver bullion coins for investment the considerations to quality remain the same as they are with bullion bars weighed in terms of troy ounces (1oz) and are assessed in terms of the quality of the metal worth, 90% through 99% being considered “good delivery” status much the same as with bullion bars, but there are an additional few things to take into consideration when it comes to diversifying your retirement gold portfolio into bullion coins.
As a result of an amalgamation of both American and British law requirements on what constitutes a gold or silver coin to be considered a bullion coin it must be first produced after the year 1800, contain no less than 900 thousand’s and once have been, or is still considered legal tender in its country of origin.
This results in most gold and silver bullion coins being marked with a monetary denomination, but it must always be taken into consideration that this is simply a formality and the metal content will always be far greater than the face dollar value itself, so when you are assessing potential bullion coins for investment, do not be steered away from a potentially valuable investment simply because it has a low face dollar value, its metal worth will far out perform and exceed that value, for example a one troy ounce gold American eagle bullion coin, which holds a face value of $50, would at time of writing be worth over $1600 dollars.
Design, Flare & Value Throughout the Ages
While in no way to detract from the tried and true investment performance of gold bullion bars which are always a secure investment option, one additional investment attribute of gold bullion coins is that the hallmarks and designs they have can at times mean they fetch a higher value from a collectors stand point, certainly the metal value would always be the first consideration, but other things such as circulation quantity, design rarity and popularity are also worth taking into consideration when it comes to bullion coin investment as these may give rise to the potential for a slightly higher sale value as a result of the collectors aspect associated with the initial investment.
As with bullion bars, it is not to be said that there are not gold coins with immense value minted before the year 1800 or that perhaps do not meet all the requirements considered to be true bullion, but these would be considered collectors’ items for a collection portfolio, and not one for a retirement gold portfolio.
Whether Gold Bars or Gold Bullion Coins, or a diversified mix of both, one thing that is always assured is a protection of your wealth against the effects of inflation, a security that not only stores the value of your money but also allows it to continue to grow securely over time, giving you peace of mind and a long term return on investment, for gold itself is real money as it has been since the dawn of commerce on earth and continues to be so through to this day.