A Gold IRA can be a great way to hedge against economic collapse and having gold in your IRA at this point in time should really be an almost automatic response to the current market and global economic conditions. Gold itself often–nearly–inversely mirrors the the dollar and the rest of the market. A true mirror would make gold known as beta negative commodity, some instruments like ETFs can be true beta negative, but gold is a tried and true conservative investment which can offer the security like a treasury note and at the same time have the returns of a conventional stock. The risk vs. reward on gold is one of the reasons that gold should be a part of your overall investment strategy.
This beta negative property of gold makes it an excellent tool to hedge against bearish market conditions. When the market looks bearish and the dollar looks weak, gold prices will generally jump heartily, bringing profit to those who invest in it. Reducing your portfolio’s beta can be a good way to make your investment strategy more conservative. Introducing gold to your IRA reduces the beta valuation of your IRA without reducing your ROI, making your IRA more ‘beta neutral’. ‘Beta neutrality’ is often highly sought after by certain hedge funds and is a mark of professionalism above that of the norm. Most financial advisers do not have a good grasp of beta valuation, or any valuation for that matter (and is a reason indicative of why most people do not make money when investing with them).
Pertaining to IRAs in general, an IRA is really one of the best ways to invest for your retirement, by introducing your savings into the IRA you are giving yourself tax free contributions to be enjoyed in the future. Some companies even have plans that will match your bi-weekly contribution, doubling the amount of money your saving for your future. IRAs, because of their tax friendly nature, make them one of the most highly sought after retirement savings options, so highly sought after in fact that there are limits on how much you can contribute per year.
Combining the wonderful aspects of gold as an investment with the great and powerful IRA savings tool, you end up with a combination which is sure to be beneficial to your retirement. Your future is important and having a good grasp of all the concepts and ideas that make up investing as a whole is important to your success in retiring. One thing about gold in particular is that often times people will wish they had gold after-the-fact and then get in when it peaks. Try not to be one of these people and get into it when it’s below its highs.
Gold routinely has outperformed the market and almost certainly will continue to do so from time to time. As the dollar continues to move into a more precarious position with the increasing amount of national debt, gold will almost certainly play a major role in more and more peoples’ portfolios. And remember, by adding gold to your IRA you are more than just hedging against economic downturn, you are also veritably increasing your overall ROI when gold increases in value.
How To Invest In Gold | FREE Investors Kit
