Congress created the Gold IRA In 1997, which enabled investors to own physical gold, silver, platinum and pallidum within an IRA. For over 20 years investors have been turning their retirement nest egg to gold.
Both Gold and traditional IRAs have a common goal: To help provide a stable and reliable retirement for their investors. But that is where the similarities end. Traditional and Gold IRAs often react differently to market forces, and that's why they can form a supplementary relationship to each other.
Gold is a simple and effective way to diversify your retirement portfolio and can help protect your assets against stock market volatility and inflation. Traditional and Roth IRAs are typically invested in stocks, bonds and mutual funds. Adding assets that are not correlated to the stock market to a retirement portfolio can have a stabilizing influence when market volatility strikes.
Gold reduces portfolio volatility by becoming a balancing asset. This balanced approach smooths out risk, especially over the long term, which makes it a smart choice for retirement investments like IRAs
Gold is a tangible currency that can never go to zero, another compelling reason to invest some of your retirement funds in gold. Gold has been currency since the beginning of time. It has survived centuries of financial devastation, wars and currency failures. Other assets do not have the same track record. Stocks can end up worthless, as we saw during the Great Recession, bonds can be defaulted as what happened in Argentina or get big cuts like in Greece. The value of the dollar can go down, but gold will always have value.
Wise investors don't put their retirement eggs in only one basket. Having gold in an IRA provides diversification to your retirement portfolio and can help reduce portfolio volatility. Learn how a self-directed IRA with gold works.