Everything You Need To Know Before Investing In Gold
If you are looking for advice on investing in gold then you are in the right place! Gold has been used as money since ancient times. The Ancient Egyptian Pharaohs were often buried in pyramids with huge amounts of gold so that they would cross over and be wealthy in the afterlife.
Russia, India and China have been buying gold aggressively over the last few years. Gold is part of the culture in China and India with many Indians using pure gold in jewelry and having life savings invested in gold. Gold is bought in China as gifts. In the third quarter of 2014 India purchased 225 tonnes and China purchased 194.1 tonnes. Worldwide demand for gold does fluctuate however when there is such a huge demand in Countries such as China, India and Russia you can be assured that your investment in gold is safe. There are advantages to when the price of gold drops. As discussed before gold has universal appeal so when the price does drop there will always be investors ready to purchase in what they consider a “cheap buy”.Gold is also a universal currency. It can literally be used to purchase goods and services anywhere in the world. It is one of the most valuable precious metals available and is used in a wide range of goods and services. Whilst it is most commonly used in jewelry, gold is also used in dentistry, electronics, cables as well as aerospace products. The demand for gold has surged in recent years. Whilst the supply and demand determines the price for any product, gold is amongst one of the most reliable ways to secure your wealth. It is often used as a safeguard against inflation and professional investors recommend to keep a percentage of your retirement in precious metals such as gold.
What About The Effects On Gold With Increased Inflation
The purchasing of gold has often been used as a hedge against inflation, to protect ones wealth against the risk of loss against purchasing power. The loss of purchasing power means we see a decline in the items that we can purchase with the money that we are using today. When prices for goods increase faster than wages and interest rates this decreases the purchasing power for consumers. This is why many people have seen the cost of living increase since the global depression that started in 2008. With the rising rate of unemployment, the spiraling increase on the rate of inflation it has become a reality for people considering their future to consider the long term value and purchasing power of their money.
This is why more and more people are becoming increasing conscious about their future financial position. As discussed gold is a precious metal with universal appeal and can be traded literally worldwide. Unlike paper money today (which can literally be printed off at an unlimited amount) it is finite and because it is relatively rare and in demand worldwide especially as shown before in countries such as India and China it will always be able to be traded and will always hold value. In recent years gold has had an unbelievable increase in value. The average person investing in a gold ira account will invest around $80,000 USD. If you had invested $80,000 in your gold ira in 2004, your account would be worth roughly $240,000 in 2015. An unbelievable increase in your investment! This is just one of the reasons that there is a HUGE SPIKE in the amount of people investing in gold.
So What Are The Options Available If You Are Looking For Different Ways Of Investing In Gold
There are several different ways that you can invest in gold. You no longer need to invest solely in physical gold although if this is what you want the option is still available to you.
What If You Are Wanting To Consider Investing In Physical Gold
Physical gold is always a safe investment. It is a universal currency and a product that will always hold value, it is also held by central banks. You should consider the amount that you spend in physical gold as an investment or another form on financial insurance. If the need arises you must be prepared to sell your physical gold to release your money. Physical gold is a great way to ensure preservation of ones wealth as well as ensuring you can pass gold from one generation to the next. Physical gold has its pros and cons. With physical gold you have access to your gold at anytime and it can be traded in for cash whenever you wish.With physical gold you have the option of gold bars and bullions/coins. Certain countries allow you to buy gold bars at the bank. It is entirely possible to walk into a bank in Switzerland and buy or sell a gold bar.
Gold bars will sometimes cause difficulty when selling. Due to the weight in gold bars there is a higher potential of forgery and also gold bars have lower parameters for appearance which makes them easier to forge. Buyers of gold bars often have to have them re assayed. It is recommended to purchase gold bars from a place that has a verifiable chain of custody. For customers that are more strict on security features they should consider kinebars from Argor-Heraeus in Switzerland. They use holographic technology to make it extremely difficult to forge.
Gold Coins – A Different Form Of Investment
Gold coins are perhaps one of the most popular ways of owning gold. The price for bullion coins is made up of the amount of gold contained as well as an additional premium that is based on the demand for gold bullion’s.
Gold bullions come in various shapes and sizes however the most popular is the one ounce gold bullion. If you do decide to invest into gold bullions consider the Krugerrand as it is the most popular gold bullion outside of the US. If you live in the US then your only purchase of gold coins should be the American Gold Eagles. Be wary of fake gold coins as they are common and are generally lead that has been gold plated. You also need to be aware that in general gold coins are not meant to be traded on a regular basis. You should hold your investment for a few years. Worrying about market fluctuations will only paralyze your decision to purchase. If you have already decided to purchase gold you should go ahead and purchase now. Gold on average has been shown to increase over time and is one of the safest methods available to protect your investment.
Exchange Traded Funds – A Popular Way Of Trading In Gold
Gold exchange traded funds (Gold ETFs) are a means to purchase gold by aiming to track the price of gold. Gold ETFs are traded on all the major stock exchanges. It is important to differentiate between the instrument that you are using to trade funds. There are exchange traded funds, closed end funds and exchange traded notes. Not all of these instruments hold physical gold, this is important to note if it is of significance to you.
Gold IRA – The Best Way To Protect Your Investment and Hard Earned Dollars
A gold IRA in my opinion is the best way to invest in gold. An IRA is an Individual Retirement Account. One should plan for the future whatever your current situation is. Time flies past and before you know it you will need to take a real look at your pension account. A Gold IRA is when gold is stored in your IRA as opposed to standard paper currency. The functioning is exactly the same as a standard IRA however your wealth is invested into gold. This can be physical gold or a gold backed account. We would recommend physical gold.
A gold IRA will allow you to have more control over your assets. Unlike paper money which can be printed on a virtually unlimited basis and can be devalued very quickly with inflation, the price of gold is determined by supply and demand. Many people want to invest in a gold IRA to have a greater control over their future and as gold will always hold value it is a great choice.
When searching for a way to invest in a gold IRA you must be sure to choose a company that has a strong reputation in this field. Many investors including billionaires as we have shown below are purchasing gold in huge amounts as a hedge against inflation. Many gold IRA’s are also tax free. The gold must be held in an IRS approved depository, this is why it is important for you to consider the company that you will be using to purchase your gold IRA carefully.
In order to take advantage of tax free gold investments you must ensure that the IRS has approved where you are investing your gold IRA in. We would also recommend deciding whether you want to invest in gold bars or gold bullion. There are positives and negatives to both, gold bars can be more difficult to sell because they are often counterfeited however when comparing 1kg of gold bar compared to 1kg of gold bullion you can expect to pay a premium on gold bullion. There is also the purity to consider as some gold IRA accounts will not accept gold that is below a certain purity.
There are many companies that provide this service for you however after extensive research we recommend Regal Assets. Regal Assets is the company that we recommend on this website when it comes to buying gold or investing in your gold IRA.
Regal Assets has an incredible reputation. It is a member of the Better Business Bureau (BBB), has an A+ rating, has had ZERO complaints and has been mentioned in numerous websites and magazines including Forbes.
Regal Assets is a company that we recommend. They are of the opinion that as inflation increases the real purchasing power of paper based money decreases. This also applies to stocks and bonds that you hold. This is a very real fear and has been proven to be the case in countries across the globe in history. The dollar supply has expanded by $2.5 Trillion since 2009 alone. If this rate of inflation increases then it can be very real that you will lose real purchasing power.
The graph shows how hyperinflation has affected countries across the globe:
The main reason for hyperinflation is because currency is no longer backed by gold. Gold is one of the safest investments available to you. The graph below shows the growth of gold since 2004:
We can see that gold has performed at a tremendous rate since 2001. We can only expect the price for gold to increase over the long term in the future as countries such as India and China have proven there is a very real and current demand for gold. Gold is a sound investment and several billionaire investors have a huge amount of money invested into gold as there belief is the same as ours, that gold will continue to increase in price.
We recommend that you fill out your information on this website. We will get your free IRA gold kit sent out with more in depth information. This will allow you to have a better chance of securing financial freedom in your future.
What To Consider From A Gold IRA Company
Here are a few more tips for you to consider when you are researching a gold IRA company. Luckily for you we have done the research so you don’t have to, simply fill out the form on our website and we will get a dedicated advisor to give you non pressured advice. We still feel like you need to be aware of the things to look out for when you are searching for a gold IRA company:
- Do they provide a buy back program – If something unfortunate should happen and you need to liquidate your assets can you be confident that you will get a fair value in return for your assets. You need to go with a company that provides excellent customer service. Our recommendation is Regal Assets, they have had 0 complaints with the Better Business Bureau, a feat that is almost unheard of in this industry.
- Is the company clear on setup and storage fees – Some companies will make their biggest profit whilst they are storing your gold. They will charge more as your gold pile gets bigger. It is important to communicate with the company that you are investing in so that this is clear from the get go. Our recommendation has a flat storage fee which is FREE for the first year!
- What are the options available to you – You need to be sure that the company that you are investing in does not pressure you into buying something that you don’t want. If you want to purchase gold bullions then you need to be sure that gold bullions is what you get. You need to be sure to purchase gold that is approved by the IRA for tax purposes.
- Setup and Delivery times – You do not want to wait around for months to receive your gold or correspondence. You will be amazed that Regal Assets our recommendation will deliver your goods within 7 days guaranteed!
- Sales Tactics – Be sure that the company that you are dealing with do not use pushy or aggressive sales tactics. This is your future and you have to be sure that you are making the right choice and are happy with the company that you decide to go with. If your entire life savings are on the line then you need to be sure that you have considered every option that is out there. Educate yourself on the options that are available. Our website is here to provide you with huge amounts of information so that you can make a wise choice.
If you take a look at the video above you will see the benefits that you can gain by following our recommendation. So lets have a quick recap of the benefits of investing in a gold IRA.
- Guarding Against Inflation- In general the main reason that most people purchase gold is to guard against inflation, dollar value fluctuates and can change day to day. We are currently in a recession and this increases fear for many people worldwide. History has shown us that the price of gold increases during economic turmoil.
- Guarding Against Governments – It is common knowledge that governments control the supply of money and print money as and when they feel it is necessary. Paper money used to be backed by gold and history has shown us that these periods were generally more favorable for the citizen. Gold is not biased and as it does not belong to one country and can be exchanged worldwide it is a very popular way to invest in gold.
- Diversifying – In a volatile market it is import to diversify your portfolio, gold is perhaps the most sought after precious metal worldwide. It is a tangible asset that fairs well during tough times. The price of gold relies on supply and demand and isn’t tied to other financial assets.
- Tax – There are many benefits to starting a gold IRA, any competent metal custodian can rollover your existing IRA into gold without incurring any tax penalties. The IRS also allows you to save money in gold tax free, again this is something to discuss with your gold investment company.
- Historical Performance – Gold has always shown to increase over time. Paper based money will eventually crash, as with countries that are pumping more and more paper money in an effort to get out of debt, eventually the money will be devalued as countries increase inflation to get out of debt.
We have spent a huge amount of time researching the best places for you to invest your money in online. We are offering you a free no obligation pack through our website. All you need to do is enter your name, email and phone number and we will get a competent advisor to call you back, send you a free pack and discuss the best options for you moving forward.