Why you should consider investing in gold…
If you’re new to investing in gold, one of the first things you’ll want to consider is the specific ways that it can benefit you and your unique financial situation. People invest in gold for many different reasons and have done so for generations. But since each person’s goals are unique, the question you need to ask: what are the advantages for you?
To help you answer that question, let’s look at some of the key reasons why others are investing gold and how these benefits could apply to your situation.
Hedge against inflation
It’s no secret that the U.S. dollar has declined in value significantly over the last several years – and many predict it could eventually hit rock-bottom. This alone is eating away at Americans’ wealth, and when inflation occurs, our purchasing power is diminished even further.
Many use gold as a hedge against these threats, helping to protect their money in spite of our deteriorating currency. In fact, when bad government policies deflate the dollar ever further, these same actions tend to increase the value of gold.
Diversification of assets
Keeping all your eggs in one basket is riskier than ever. Gold helps to balance your investment portfolio, taking some of the weight off of other assets.
Diversification is a fundamental strategy for any investment portfolio. If you’ve invested heavily in paper assets, like stocks and mutual funds, your portfolio could take a major hit the next time the stock market plummets. Investing in gold helps diversify your holdings so you’re less exposed to losses from other holdings.
Protection from a volatile stock market
While some people use gold to diversify their portfolio, others use it to avoid the stock market altogether. Many prefer gold for the unique role it plays in a conservative portfolio and they would rather not bet their hard-earned savings on turbulent stocks. Consider that economist Steen Jakobsen recently said that the S&P 500 could tumble by 30%!
This is especially true for those nearing retirement. As the height of the Great Recession, many soon-to-be retirees saw their retirement accounts plummet along with the stock market, suddenly delaying their retirement. Today, many choose gold-backed IRAs to hedge against the risk of another sudden downturn in the stock market.
Growth potential
We can’t stress this enough: you don’t invest in gold to get rich (although, let’s face it – many have); you invest in gold to protect the money you already have.
That said, as a finite resource with global demand, gold is an extremely liquid asset with inherent value and unique growth potential. And the fact that it’s not controlled by single government makes it less susceptible to the whims and follies of politicians and Wall Street.
Curious how gold can benefit you?
Take the first step to experiencing the unique benefits of investing in gold. Grab your free investment kit here to learn more, or call (800) 355-2116 to discuss your individual goals with our of our knowledgeable associates.
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