“Precious metals.” Those two words mean a lot to investors. To some, they represent an interesting way to diversify your portfolio. To others, they represent the most important way to ensure that your wealth is protected against economic disaster. But no matter where you wind up on the spectrum, you’ll likely find that there’s room for precious metals within your Self-Directed IRA.
Of course, that doesn’t answer the basic question outlined in the title to this article: why? What’s so great about gold, silver, platinum, and all of the other precious metals that they should be considered such an important way to build a portfol
io? The truth is, few people actually have this question answered – they just include gold and silver in the likes of a Self-Directed IRA because they’ve heard it’s a good thing to do.
So let’s break it down, and go back to the beginning: let’s evaluate the potential value of precious metals as an investment, and figure out if they might be a great way for you to use your Self-Directed IRA to your advantage.
Precious Metals: A Currency Since the Dawn of…Well, Currency
Many investors who are particularly “bullish” about the opportunities present in precious metals will tell you that they love gold and silver because of their important to humankind as a currency throughout the ages. Going back to ancient Rome and beyond, gold and silver have been precious commodities through which wealth, goods, and services were exchanged. Needless to say, civilization doesn’t just abandon a habit like that overnight.
But what does that say about gold and silver’s relevance in this day and age? Well, up through the 20th century, the United States itself used gold as the backing for its chief currency via the “gold standard.” Around 45 years ago, the gold standard as left…and yet the price of gold against the dollar has actually vastly improved since then. It looks like gold and other precious metals aren’t going anywhere…and that’s one thing investors love about them.
Reasons to Incorporate Precious Metals into a Self-Directed IRA
Because of the aforementioned ability of gold and silver and other precious metals to retain their value over time, many people love putting them aside for retirement to ensure that they have some of their wealth tied up in something that isn’t based on the fiat currency of the time.
[tweetthis twitter_handles=”@iraexpert” hidden_hashtags=”#PreciousMetals #Gold #Silver”]You might find precious metals to be attractive…[/tweetthis]
If you want your Self-Directed IRA to give you security and peace of mind because you believe that it will retain its value even in tough economic times, then you might find gold and silver and other precious metals to be particularly attractive. In fact, many people who come to Self-Directed IRAs in the first place do exactly that because they want to diversify their portfolio or break a little piece of their nest egg “free” of the most dated traditional advice.
Does that mean that gold, silver, and other precious metals are invulnerable to the market as a whole? Of course not. Their prices fluctuate, just like everything else. Yet avoiding risk is not in finding the perfect investment; it’s in using investments as a tool to create an overall portfolio that sees less risk. It’s not difficult to see how gold and silver might be tools through which you can accomplish this. In fact, you’ll find that they are among the most powerful tools investors can use to ensure that their money is not completely tied up in stocks.
If you’re interested in making precious metals a part of your nest egg, you might consider opening up a Self-Directed IRA to make investing in these commodities a breeze. Contact us at 1-866-7500-IRA(472) or keep browsing AmericanIRA.com to learn more.
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