Gold IRA Rollover -Why You Should Invest in Gold
You may well have heard people talking about buying gold or precious metals, a gold IRA rollover or 401k rollover. More and more wise investors are making the switch over to a gold IRA these days. This is because knowledge is more widespread about how easy it is to do.
But before you make the move into precious metals, the big question of:
‘Why should I invest in a Gold IRA?’ needs to be answered.
It all comes down to a real understanding of what money is. Why can a simple piece of paper called a bank note purchase something, but another piece of paper like a post-it note cannot? Bank notes are given value just simply by the fact that a government decides that they have value.
It doesn’t matter what country you live in, all the paper money is just decorated notes known as `fiat currency’. Without the declaration by the government of fiat currency value, it is just worthless.
How Can Currency Be Worthless?
The two sides to the agreement are the government’s declaration and the public’s acceptance of this declaration. However, when we, the people lose faith in our government and have doubts about government power to control the economy, fiat currency can and does lose its value. Every time we see events like recessions, or economic turmoil, and other large scale disasters fiat currency takes a hit. But not only that, it means that other investments such as stocks and treasury bonds are also affected. The reason for this is that the stock market is measured in dollars, or fiat currency and bonds are also measured in fiat currency.
So as the value of fiat currency goes down, then the return on your investments also goes down.
We call this depreciation. In actual fact it iss devaluation of the currency. For example, if you are invested in bonds and they promise to pay back 10% interest over a ten year period, that all sounds very nice. You invest $100,000 and get back $110,000.
But if the cost of living has risen by more than 10% in that time, you are actually losing money.
Should a major economic event happen, another financial crisis, most people will be left holding worthless stacks of paper. Whereas the wise investor in gold and other precious metals will have preserved their purchasing power.
What is a Gold IRA Rollover / 401k Rollover?
Basically as the name suggests all a gold IRA rollover/401k rollover is, is where you transfer your wealth into gold, silver and other precious metals. This `rolling over’ of your hard earned wealth away from fiat currency backed assets is wise. When you move your wealth into precious metals means that you have a gold backed IRA, rather than a paper backed one.
The steps to do this are reasonably straight forward. As a result more and more intelligent investors are moving their retirement funds, in full or in part, into physical precious metals.
Top Reasons you Should Invest in a Gold IRA rollover for Your Retirement
There are many reasons why wise investors are choosing precious metals and in particular gold to secure their future. More and more people are backing out of the fiat based currency system, and below are just some of the top reasons for you to do the same.
Preserve Your Wealth
We all work hard, and save and sacrifice so that we have enough to retire comfortably and not have to worry about money. It would be tragic if all those hard years spent saving and sacrificing for your comfortable retirement went to waste.
Gold mined centuries or even thousands of years ago is still worth money today. In fact gold is the ultimate store of wealth, as it has universal value in every country around the globe. Should there be some unforeseen financial crisis, then the value of gold, silver and other precious metals will likely rise and dramatically due to high investment demand.
Regardless of what happens, people always buy gold. In recent years, gold and silver mining has seen difficulties and production has slowed whilst demand has risen. This has lead to many experts expecting the metal to rise sharply.
Gold is easy to sell and liquidate should you need some fiat currency for something. This is not the same with stocks or bonds, where the demand for stocks, and the ability for you to sell them rests on people believing in the health of that company or government.
Gold however, is easy to liquidate and can be done so by many of the more reputable gold firms in their `buy back program’. This is where a fair price is offered to purchase your gold in exchange for cash.
When it comes to investing, a good portfolio is one that comprises of several wisely purchased investment across the different investment vehicles available.
When it comes to precious metals investing, and gold IRA options, you can choose to invest in gold bars, gold coins or other methods.
Most gold companies offer a variety of different metals to purchase from including gold, silver, platinum, and palladium, to keep a diversified portfolio.
These days, most people ave uneasy feelings about the economy and the future is far from certain. Most people are unsure of where exactly to put their wealth so that they can outlast another financial crisis like the one of 2008.
Gold is immune from pretty much every negative economic event that could unfold. It rarely depreciates, does not rely on trade levels and government promises. In fact the stability that gold and other precious metals offer is guaranteed in times of crisis as people fly into gold and precious metals. They do this in a panic to try and get out of fiat currency based assets. This in turn forces the prices of the metals up rapidly.
Gold Versus the US Dollar
These days the US dollar is the world’s reserve currency and as such most people believe the dollar to be secure. However, this is simply not true.
The US dollar began life tied to gold and silver and was originally money. This meant that you could go into a back and exchange paper bills for real physical gold and silver. Banks had to keep physical gold and silver in their vaults.
Anybody who has seen a cowboy movie knows that the bank robbers were always stealing gold, not paper.
However the dollar ceased to be backed by gold in 1971. Then it became just another fiat currency and as a result can suffer the same fate as countless thousands of fiat currencies that have come before.
That is, that the fiat currency goes to being worth zero, and is replaced, usually by a gold and silver backed new money.
Because the US dollar is no longer tied to gold, it means that the purchasing values of the dollar fluctuates on the open market, and this also means that over time the value drops significantly.
Gold and the dollar share an inverse relationship, where when the dollar drops in value, the value of gold INCREASES.
Will your Savings for Retirement be Safe in a Bank?
These days banks are very secure buildings when it comes to physical armed robbery, but when it comes to financial crises like the 2008 financial crisis, not all banks are healthy enough to withstand them.
This was witnessed with Bear Sterns and Lehman Brothers collapse in 2008, those that had their savings in these banks and their various investment vehicles lost millions.
Will Your Savings be Safe with Gold Companies?
The answer to this depends on which company you choose. You should choose one that has a proven track record, great reviews, a long history in the industry and also offers the right services. Careful research before committing to a gold IRA rollover is important.
You should see customer feedback and testimonials online and check to see if your gold investments will be put into segregated storage or not.
Could the Government Confiscate Your Gold?
This does worry some investors, but in truth it is highly unlikely that this could happen. In history the US government has confiscated gold that has been held in bank safe-deposit boxes, but not that of private companies.
When this happened, it was the opposite of today where deflation was the problem, these days the problem is inflation. Also we have to remember that at that time, in 1933, gold was still backing paper currency, so the connection was clear for the government to be able to demand citizens surrender their gold. Not only that but the government in 1933 set the value of gold to be worth a certain dollar amount. The idea behind confiscating gold was so that the government could essentially re-price it in terms of dollars and in doing so help out in the economic situation.
For the government of the modern day to confiscate gold there would have to be a very clear and unarguable motive behind it, otherwise the bill would not pass.
The benefits of a gold IRA rollover are:
Gold value is stable, although there are minor fluctuations day to day, long term it is a very stable investment.
Exchanging gold to paper money means that you must pay income tax. However, there are facilities with a gold IRA rollover account that prevent you from paying larger tax amounts than necessary.
You don’t need to worry about financial crises, inflation and other economic problems when you are invested in gold investments and other precious metals.
Who Do We Recommend?
Regal Assets is a leading name in the gold industry and provides premium, professional services for gold IRA rollover /401k rollover accounts. They have an established, excellent track record and are staffed by fully trained specialists that are happy to help you get your gold IRA started smoothly. They can also give advice on gold and precious metals investing and answer any questions you may have.
For a full report on Regal Assets check out this in depth review of the company.
Why Choose Regal Assets?
If you're looking to get started into gold investing then Regal Assets is a fantastic company to work with to develop your long term financial security and protect your wealth into retirement.
They have the best reviews in the industry and specialize in gold rollovers. Their trained specialists can maximize your potential for financial growth and security.