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Why Should You Invest in Gold Backed IRA?

Updated on June 7, 2014

What Is a Gold IRA?

Today, more and more people are looking for safe investment options for a secure retirement. Gold IRA has become very popular among many people who believe that investing in a gold IRA is a great way to diversify their assets and secure their retirement funds.

IRA stands for Individual Retirement Account. A gold backed IRA is an investment plan designed for people who want to secure their future after their retirements by investing gold into their IRA.

So, a gold backed IRA is basically a retirement plan that saves your retirement funds in physical commodity gold. Hundreds of thousands of people from many countries in the world invest in gold IRA to secure their retirement funds or golden days.

Why Investing in Gold IRA?

There is a multitude of reasons why investors want to invest in gold IRA. Historically, gold has been the most coveted commodity to invest in because of its worldwide demand. The price of gold has always risen over time, making it a very popular investment tool for long terms among the investors or people in general who want to invest in gold.

Ever since the introduction of gold IRA, investors have kept their faith in gold IRA because it works as a safe investment against the fall of stock markets, inflation and other poor economic scenarios. So, you can consider opening a gold IRA with a good gold IRA investment firm.

Gold as an investment option to secure retirement funds


Investing in Gold IRA Reduces Investment Risks

Investing in a gold backed IRA reduces investment risk. When the stock markets from all across the world were hit hard and the real estate markets suffered terribly in the recent past, the price of gold skyrocketed, breaking world record after world record.

Investing gold into your IRA can enhance the security of your savings and help you get long term gains in the future. It is never too late to invest in a gold IRA. However, you should research the market, take into account the fundamental and technical aspects of stock, bond and commodity markets before you decide to open a gold IRA account.

When the interest rates are low, and the consumer confidence is low, the demand for gold usually always goes up. Investing gold in an IRA is not like other traditional ways to invest in gold.

Unlike other gold investments, such as investing gold in stocks, futures, and spots, you put gold in a gold backed IRA account. It is a safe investment considering long term benefits.

Gold Acts as a Hedge Against Inflation and Other Financial Risks

You can use gold IRA investment as a hedge against inflation or a crisis that reduces the value of paper money. Gold has the power to protect your assets and financial security because it is used as an insurance against inflation and currency market uncertainty.

A gold backed IRA will act as a safety net for you in times of difficult economic conditions. Choose a reputable investment firm or company to help you find the best gold backed IRA account.


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    • freelanceinfo profile image

      Sha 3 years ago

      Hi DowntroddenInDC,

      Nowadays, it is easy to invest in gold through opening the right IRA. Choosing a reputable custodian is important that will walk you through the whole process and explain the risks and benefits involved.

      Investing is a risky game whether it is investing in currencies, stocks, commodities, or bonds. Individuals' circumstances, preferences, and most importantly proper knowledge in the product(s) they are interested in investing their hard-earned cash is vital to their success.

      I have worked as an in-house trader trading in futures, stocks, commodities, and currencies, and learned my fair share of success of failure. I know how fees can be ridiculously high. Nobody can predict what awaits us in the distant future, when it comes to the future of stocks, bonds, and other traditional investment options.

      I believe in diversifying assets, because it does really work favourably eventually. A gold IRA, however, is not the option for everyone. Individuals' current financial circumstances, their future projections, and of course personal preferences dictate whether it is a good idea to invest in a gold backed IRA.

      Thanks very much indeed for your insightful inputs, much appreciated really.

    • DowntroddenInDC profile image

      DowntroddenInDC 3 years ago from Houston, TX


      Had you bought an oz of gold in 1900 and also an equivalent amount of the stocks in the DOW Jones in 1900, the gold would be up about 130% in inflation adjusted 'real' terms. The Dow Jones stock basket would be up nearly 450% in inflation adjusted real terms. Had you bought gold at the top of the last boom cycle in the early 80's you'd just now be break even, while your stocks would be up 200%.

      Gold is a poor store of value. It has no real use other than being a speculative shiny metal. That's not to say people cannot make money off of trading it, just like some people actually do win big at casinos. However, the tables are tilted against you, especially as a small time investor. You will be eaten up in fees purchasing the physical gold, setting up the IRA, and the tax documents you'll need to self report each year.

    • DowntroddenInDC profile image

      DowntroddenInDC 3 years ago from Houston, TX

      Like all investments you shouldn't put all your eggs in one basket. Gold is just a metal with very little commercial value (unlike copper and silver.) It's durable too, meaning it's not just evaporating into the air never to be seen again Yes, it's rare, but there is a whole lot more of it today out of the earth then there was a hundred years ago. And with the way they are strip-mining for it now, they'll be even more tomorrow.

      Gold is just like fiat paper money, it only stores as much value as you can convince the next person it has - and that value is all over the place. Sometimes it's up, sometimes it's down. Over time it hasn't been a great investment either.

      Be careful.