Should I Invest In Gold Now?

The Time To Invest In Gold Is Now!

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With the investing world obsessed with all-time highs in the stock market, cryptocurrencies, and NFTs, it is time to consider one of the most stable forms of wealth. That’s why you want to seriously consider diversifying your portfolio with gold. Before considering investing in gold or rolling over a retirement account into a gold IRA, have Allegiance Gold educate you on the importance of adding gold to your investment portfolio. Here’s a look at what gold may be one of the smartest investments that you can make right now. 

1). The Dollar Continues To Weaken 

Since President Nixon closed the gold window in 1971, the purchasing power of the dollar continues to weaken. All one has to do is look at the price of everything from gas to stocks and groceries in the last 50 years. The trend towards a weakening dollar doesn’t seem to be changing anytime soon. Therefore, it is a good idea to have some gold which tends to hold its purchasing power over the long term. 

2). The Prospect Of Increased Inflation 

In 2021, we saw inflation rise significantly for the first time in over a decade. This has led to increased prices in everything from groceries to used cars. During times of inflation, people tend to store their money into items that have some form of rarity. That’s where gold comes in. There is a limited supply of this yellow precious metal which can not be printed out of thin air like the U.S Dollar. 

3). Hedge Against Equity Investments 

Most people hold the majority of their wealth in stocks. While stocks have performed exceptionally well over the last decade, market crashes can lead to some horrendous drawdowns in a stock-dominated portfolio. In fact, the S&P 500 has seen three drawdowns of over 50% in the last 55 years. If you are nearing retirement, you don’t want to deal with the prospects of your portfolio being cut in half. Typically, gold tends to hold up in times of stock market downward volatility. 

4). Gold Is Relatively Cheap Compared To Other Assets 

Right now, we are seeing multiple bubbles across a number of asset classes. As of August of 2021, the total market capitalization of the U.S. stock market is well past the U.S. GDP. Known as the “Buffett Indicator,” such valuations tend to lead to bear market inequities. However, we can also see bubbles in real estate, collectibles, and cryptocurrency. Gold’s price has been relatively quiet compared to these assets. This allows you to own the most resilient store of wealth at a bargain price. 

5). Gold Can Preserve Purchasing Power 

For the last 10,000 years, gold has held up its purchasing power. Compare that with all of the fiat currencies of the world. There has not been one non-gold back currency that has survived more than 300 years. When you own gold, you own an asset that will store your wealth unlike anything else on the planet. 

6). Gold Can Be Used In A Gold IRA 

In 1997, Congress passed the Taxpayer Relief Act which allows you to store gold in a gold IRA. That means that you can put gold coins and gold bullion in a gold IRA and have it appreciate in value until your retirement. This can be one of the smartest ways to ensure that you preserve your wealth over a long period of time. Also, you will have the peace of mind of owning an asset that won’t have wild fluctuations in price. 

7). There Is No Counterparty Risk With Gold 

With gold, there is no counterparty risk. That means that you don’t have to worry about another party that won’t fulfill their part of the deal. This makes gold one of the most stable investments that you can have in your portfolio. 

Securing Your Wealth With Gold 

For thousands of years, gold has been seen as the ultimate store of wealth. As many other novice investors gamble with speculative assets, gold can provide your wealth with true staying power that can fund your retirement and allow you to sleep at night. If you are interested in adding gold to your portfolio, then consider a gold IRA or taking physical ownership of gold coins or gold bars. Allegiance Gold has been educating investors and retirees about the benefits of gold and how gold can preserve financial freedom. Contact Allegiance Gold today for a FREE gold IRA guide that details the power of investing.  Call (844) 790-9191 or visit our website at www.allegiancegold.com.