Gold just recently enjoyed a post-recession high value against the dollar. In the past year, more and more people have been looking for gold to include in investment portfolios. Considering the political fluctuations in the past year, this is no surprise. The rise of gold is a trend that even those who are not serious investors should pay attention to.
Even financial advisors are telling clients to get physical gold as a form of investment. You may ask yourself: why should I stock up on precious metals like gold? Let’s look at several possible reasons.
Brexit and Other Political-Financial Disasters
Earlier this year, soon following Brexit, many British retirees woke up to find that their retirement savings were significantly lower than before Brexit. Because of the sterling pound freefall caused by Britain’s decision to leave the European Union, chunks of hard saved money were gone. This is what happens during times of economic and political instability. Currency crashes, and with it wealth is wiped off as if it was never there in the first place.
Something similar happened during the 2008 financial crisis. When currency crashes, the value of precious metals like gold shoot up. Following the Great Recession, the value of gold reached a height unseen in decades. The value of gold went up once more following Brexit. Most people would not imagine that another recession could occur that will devalue their assets in 20 or 30 years. But it’s impossible to predict what will happen in the distant future, just like it’s not very easy to predict what will happen next week. Instability does not always announce itself in advance.
Hedge Your Wealth with Gold
Gold can be an investment, but it’s more importantly a form of protection. Because gold is inversely proportional to the value of the dollar, having gold can protect your overall wealth against losses caused by freefalling currency. Of course, you should not have all your savings in gold. Think of gold as an opportunity to diversify your investment portfolio. Having solid gold assets will keep your net worth from disappearing in case there’s another economic crisis.
Some people also consider gold as an investment. You can invest in companies that mine gold. However, this stock is not any different from tech or real estate stock. Gold mining company stocks are subject to market fluctuations too. So, you should have gold in coins, bullions or bars. Gold ETFs are also a good option. You can rollover your IRA with gold coins as well (only some types of gold coins are eligible for IRAs).
Secure Your Financial Future
It all comes down to safeguarding your financial future. Currency investments are still essential for your retirement or other future plans..
To invest in gold, you must first find a reputable brokerage agency. As gold purchases have risen in recent years, brokerage firms are now offering various options to buy gold. Do not be too hasty to buy gold from just anyone. The reputation of the broker is very important. Do your research before putting your trust in a broker.