By Alexa Gavin
When you save money, what do you typically use? If it’s paper currency, then the chances are that the dollar bill in your wallet is only worth about $0.13 to its actual value. This might seem like a small amount but think of how many dollar bills we all have lying around! That adds up quickly, and over time, people are losing money in this way.
Gold is a much better form of savings than paper currency because it maintains its value over time and cannot be easily forged or counterfeited.
Gold vs paper savings is a debate that can be resolved when you understand the benefits of gold.
Five benefits:
- Liquidity:
Gold is one of the most liquid and highly traded commodities, so it’s easy to buy or sell physical bars and coins at any time without having to pay significant premiums over the spot price. The value of your investment will not be tied to any single company’s performance but will depend on the overall performance of gold and how much it is worth at any given time.
Gold IRA investments can be kept in a brokerage account, allowing you to save your money diversified among other assets such as stocks, bonds, or mutual funds.
- Diversification:
Investing in gold can provide a greater degree of certainty compared to paper currency. Gold is not dependent on the performance of any company, and it cannot be easily forged or counterfeited like dollar bills which reduce your risk when you invest in physical bullion bars and coins instead of just investing in companies that mine gold.
Gold IRA investments are considered more conservative, but they can still help you diversify your portfolio by providing an alternative to investing in paper currency.
- Protection Against Inflation:
Gold is a great way to hedge against inflation because the price of gold tends to rise as other assets lose buying power. As a result, the value of your investment will not be tied to the performance of any single company but instead will depend on the overall performance of gold and how much it is worth at any given time.
- Privacy:
Some people who buy gold bars or coins do not wish everyone to know that they own them. However, when you purchase a certificate, there is no actual metal backing the claim, which means your privacy may be compromised if someone finds out how much money you have in precious metals accounts.
In conclusion, investing in gold through an IRA is a great way to diversify your investment portfolio while protecting against inflation and hedging against more volatile assets such as stocks.
