At some point in your life you have probably heard about IRAs as an investment product. However, not too many people have heard about a gold IRA. A gold IRA is quite a different product from most IRAs. Additionally, it is a better investment than most other IRAs. Here are the differences and why the gold IRA is a better investment.
Special Metals IRAs
One hundred-plus years ago, the paper money in this country was backed by gold. The gold, which was held in trust in places like the Fort Knox Treasury, kept the value of paper money high so that paper money could act as gold in trade for goods. Eventually, paper money was no longer backed by gold, and lost most of its value.
That aside, you can see where precious metals have an impact on the value of investments and paper assets. Paper IRAs promise a certain percentage of return on your investment. However, because your paper money invested in these IRAs is subject to inflation, recession, and depression, you may not get all you expect because of the exchange rate at the time you cash out these IRAs.
Special metals, on the other hand, only consistently rise in value. These metals are rare, and they grow rarer by the day. Using coins or bullion to secure and back an IRA means that you will always get the current value of what you have invested, plus the rise in value of precious metals. These IRAs protect your investments against inflation, recession, depression, and the devaluation of the American dollar.
Metals Accepted for Securing a Gold IRA
Besides gold, you can also use silver, platinum, and palladium. Gold is literally the gold standard, however, because it has the greatest value and is most rare. People expect that gold will become even more rare in the future unless space explorers find a ton of it on another planet. That does not appear as though that will happen in the next fifty years, so investing in a gold IRA now is an excellent choice.
Why a Gold IRA Makes the Most Sense as a Sound Investment
As you can see, throughout history precious metals lent their value to paper money. They continue to do so the world over. When Britain's pound note fell in valuebecause they joined the E.U., Brexit happened. Now the pound note's value is rising again because their paper money is once again backed by "silver sterling." The same thing happens with IRAs that are backed by precious metals. Their value skyrockets.Share