BusinessRetiring off Gold, Is It Worth Its Weight?

Retiring off Gold, Is It Worth Its Weight?


A retirement account is simple. You invest in diversified assets and receive a steady income when you grow too old to work. But, what if the entire economy crashes all at once, without warning, and encompassing even the most prepared financial circles? An economic depression is a snowball effect that has only one significant counter: goods with hard value regardless of the fluctuations of a fragile market.

            This is where the potential of gold sneaks in. Even though there are some exceptions, for all of human history this precious metal has held value. There is no other material with more precedent than this, or is there? Let’s evaluate some of the potential pros, cons, and alternatives to this precious metallic element.

Golden Stability

            One of the primary draws to a gold retirement account is stability. While assets from other sources are bound to fluctuate from a low of worthless to a high of the foundation of fortunes, gold is a constant that always has value. How much value, though, is highly dependent on perspective. Gold prices do fluctuate, quite a bit actually. But, in general, gold always has value, which for some products isn’t true.

            Many companies thought of as “safe” 10 or 20 years ago have been passed by the corporate expansion of businesses like Amazon. If you asked someone if children would need a toy store in 30 years in the ’90s, the chances are they’d say “of course!” but the fall of Toys R’ Us tells a different story.

Potential for Profit

            Most retirement accounts are expected to accrue over time. For this reason, it’s very wise to invest early and invest as much as possible so that your golden years are truly golden. Does the value of gold increase as much as other potential investments?
            The answer to this question is inconsistent, as gold tends to follow an opposite path from conventional finances. During periods of financial hardship, gold by its nature becomes more valuable. As trust degrades, gold gets more expensive.

But, during a period of normal economic growth, a bar of gold might not be as worth it as you would expect. How much is “normal?” We’ll let the economists decide, but for now bubbles in the sphere of precious metal trading pop, but do not crash. Gold has value on a societal level, which is much harder to degrade than numbers on a graph. However, it is worth noting that market trends are a lot more complex than this, so click this for a more comprehensive overview of these issues.

When evaluating stability in investments, gold is a consistent draw. Gold IRA’s are a response to this draw towards something easily and consistently valuable. Yet, gold doesn’t grow with the same level of value as other investments during a potential boom period in the economy.

Emergency Funds

Funds for a rainy day are one of the principal purposes of a retirement account. Using them early and living frugally is possible but not advisable. In terms of early use in case of an emergency, natural disaster, or widespread economic crash, investing in precious metals is as prepared as you can get.

            If you invest in gold, you get a solid object, you know (roughly) where it is, how to get it, and it’s easy to tell how much it is worth. If you are the type to play finances on the safe side, this becomes an easy decision.

Creeping Problems

            Gold prices do fluctuate. You need only search a graph of gold prices to see that although growth does happen and it happens often, there are periods of market crashes. The latest serious one occurred in 2016, but zoom the graph out further and you’ll find that over a longer period of time the price has gone up, just like the rest of the market has when looking at diversified investments.

            Is gold more stable? Yes, but it does have pitfalls. Other precious metals such as platinum and silver may serve to bridge that gap. Investing in multiple allows you to manage the ups and downs of each, similar to a diversified IRA account.

            With modern retirement accounts, there is a certain amount of risk that is accepted by the average person. You expect that the money given to that account will grow. Crashes happen, but it’s as secure as the facility that stores it, and given current trends towards cyber warfare this may provide some serious peace of mind for those with an eye towards the future.

Ease of Access

            Acquiring precious metals is usually considered something that only rich barons and mustache-twirling monopoly men invest into. But, the process is very simple and debatably something anyone can do. If you’re tired of the fluctuations of market paper currency, there are many possible sources for these accounts, but here’s a great example of an investing in gold website that makes the process extremely simple.

            As far as other forms of investments go, gold takes the cake as one of the simplest forms of investment currently available. It’s also very secure, with most companies offering high-level security for gold assets. The logistics of this process are simple and made even simpler by the innate presence of the real, physical object.

International Bullion

A common fear concerning financial transactions regards the laws of countries that secure them. Gold IRA accounts are allowed under US law, but should that law change, would gold investments remain in your hands? This is a complicated question with many answers depending on the text of any individual law. Yet, this is also true for paper money. You don’t need to ask around for long to find someone with an issue with their retirement account, an overflow of paperwork, or a combination of both.

            Paper money may be conventional, but it is also fragile. If the market crashes of the last few decades have taught us anything, it’s that the market giveth and the market taketh away. If you feel like the numbers and graphs are too much, maybe investing in gold is right for you. But, as with all economic prospects, make sure to do so through secure channels.

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