Gold Trends Increasing
From 2006 to before the recession devastated the US economy, there was little to no demand for gold IRAs, which was primarily due to the long and complicated process and transaction, which only the most determined of investors were willing to chase.
For example, first of all, you need to locate and hire a custodian or an IRA recognized trustee and a depository to store the gold.
After that, you would have to invest in your desired precious, mainly gold, which had to be approved by the IRS. So, it was a grueling process.
But up until the recession hit in 2008, the demand for gold-backed IRAs exponentially increased and became ever so popular.
And since then record gold sales, amalgamated with the presence of several companies simplified the process of acquiring and storing gold, making gold-backed IRA portfolios a one-stop-shop for interested investors.
Furthermore, the sudden and powerful impact of world economic news confirmed an increasing trend in the purchase of gold IRAs, which continued mainly due to the inflationary downfall of the Fed’s ambitious stimulus programs – and also because of an abrupt addition in geopolitical volatility.
The Special Risks Associated with Gold
There is no doubt about the fact that all investments carry some form of risk as well as monetary rewards, which includes gold-backed IRAs. In a sense, gold IRAs can be subject to similar risks that any other traditional investment vehicle is exposed to.
The price of this precious commodity can also fluctuate rapidly and be exposed to volatility – and it is quite an analytical nightmare to accurately predict where gold prices are headed in the future.
And because risk is an essential part of your investments, you have to understand that there are still very powerful reasons you should commit a small portion of retirement money to buy gold. Did you know that gold was used as an effective store of value even 5000 years ago?
And speaking about value, you do know what happened with Lehman Brothers, right?
Their stock plummeted to 0 and investment bonds can just as easily default. You have to realize that the value of the US dollar has exponentially plummeted, but the value of gold will never go down to zero.