The average American’s IRA includes stocks, bonds, and mutual funds and is administered by large financial institutions. These traditional vehicles for wealth protection in an IRA do not provide any assurance. Case and point–the importance of diversifying in entirely different asset classes was amplified in both the 2000 and 2008 financial crises. In 2008, the stock market dropped nearly 40%, real estate values plummeted, unemployment surpassed 10%, and the dollar weakened. It was evident, that although stocks, bonds, and real estate are different asset classes, during a crisis, all three, were highly correlated. This perfect storm evaporated retirement savings and nearly wiped out the safety net of many hard-working Americans.
Mainstream media, government tax breaks, employers and large financial services companies have often, and continue, promoting investment in the stock market and real estate as a means of accumulating wealth. However, these institutions neglect to emphasize wealth preservation by investing in precious metals. Since 2000, investing in Gold IRAs has a strong record and grown popularity due to its stability against volatile market conditions.
Everyone has some insurance to protect what matters the most. Similar to home, auto, and life insurance, a Gold IRA is your retirement savings insurance. True portfolio diversification includes precious metals to immune your savings from steep stock market crashes, currency devaluation, inflation, and deflation. That is why an IRA holding precious physical metals is an important option to ensure full diversification.