Gold is an excellent investment opportunity in every type of economy. But some economies are more favorable to gold investors than others. Right now, investing in precious metals has never been better. With the coronavirus, social distancing, and lockdowns, the value of gold and other precious metals continues to skyrocket.
As I mentioned, investing in gold is always a smart choice whether there’s a booming economy or a recession. Believe it or not, a weak US dollar and unfavorable economic conditions make gold and even more valuable commodity.
There are other reasons to invest in gold. Keep reading to discover why I feel it’s such a powerful investment opportunity right now.
3 Reasons to Invest in Gold Right Now:
I am hammering this point home because you deserve to know the truth. And I plan on giving it to you. The reasons to invest in gold include:
1. Gold Has Tremendous Intrinsic Value
Paper currencies like the US dollar and the UK pound are very unstable at the moment. Gold is the polar opposite of these government currencies. Why? The United States, as an example, is printing money left and right to shore up its economy during the pandemic. This lowers the value of the US dollar, which in turn causes prices to rise.
Over time, the more paper money that gets printed, the less valuable it becomes. This creates inflation. Before long, buying a loaf of bread will cost $10 as opposed to the typical $3-$5 that it usually costs at the moment.
On the other hand, gold has tremendous intrinsic value. No one can print gold and it isn’t possible to manufacture it or create it in a lab. Gold miners are the only ones who can add more gold to the current count. Since gold mines are drying up, the amount available is scarce. This drives up the price of gold and creates massive intrinsic value along the way.
The best way to buy gold is through a precious metals IRA account. It provides tax benefits and other advantages over the long term. Take time to learn about initiating a gold IRA rollover. It’s the best possible financial move you can make in a tough economic climate like the one right now.
2. The Tax Advantages Are Extraordinary with Gold IRA Accounts
Gold is a great investment on its own but it’s more potent when you’re investing through a precious metals IRA. How so? Investing through a self-directed Roth or traditional IRA provides major tax advantages. They include:
- Lower your adjusted gross income and pay fewer income taxes each year
- Save and grow a tax-deferred precious metals IRA account
- Save and grow a tax-free precious metals IRA account
- Yearly contributions continue until 70 ½ years old
- The marginal tax rate is used for tax-deferred investments
The tax advantages of a precious metals IRA account are wonderful indeed. Consider opening a gold IRA now to enhance and expand your retirement portfolio.
3. Gold Is a Highly Liquid Asset
People fail to realize the excellent liquidity that gold has. As a matter of fact, Exter’s Pyramid lists gold as the most liquid asset available today. According to the pyramid, gold receives top billing over other assets that include:
- Paper currency
- Government issued bonds and T-bills
- Stocks, securitized debt, and municipal and corporate bonds
- Real estate, privately owned businesses, and other commodities
- Derivatives and government liabilities
As an investor, liquidity is something you must seriously consider before making an investment. It may take too long and cost too much to find a buyer in an illiquid market. This means you should focus on the most active marketplaces like the gold market. Precious metals like gold, silver, platinum, and palladium are the best of breed in liquid investments.
3 Ways to Invest in Gold
As you are about to learn, there are three main ways to invest in gold. They include the following:
- Buying physical gold
- Buying gold securities (stocks & ETFs)
- Investing through a gold IRA account
Each of these three investing strategies are valid. Many people choose their style of investing based on personal preferences. While that’s all well and good, you should capture the biggest tax advantages to grow your nest egg faster. The biggest tax breaks only happen through precious metals IRA investing.
The advantages and disadvantages of these investments include:
1. Buying Physical Gold
Owning physical gold is a smart strategy. It gives you the option to use your gold during times of serious economic turmoil. This currency is accepted all around the world and countries far and wide consider it legal tender. So, if the worst were ever to happen and the US dollar completely collapsed, you’d still possess financial potency.
But in my opinion, this is far from the most superior way to invest. Buying gold bars and coins and storing them in your closet safe isn’t secure. And it doesn’t give you the major tax advantages provided by a precious metals IRA.
2. Buying Gold Securities (Stocks & ETFs):
Buying gold stocks and ETFs is my least favorite way to invest in this highly liquid precious metal. In truth, these investments all take place digitally. You do not actually own this amazing commodity. You may make money from this investment with good timing, but you don’t gain the greatest amount of value.
3. Investing through a Gold IRA Account:
This is the superior investment strategy in my opinion. You’ve read about all of the major advantages above. Overall, the tax benefits alone are stupendous. They make growing your money much easier over the long term.
At this stage, you should be completely convinced that now is the perfect time to start investing in gold. The market and economic climate are favorable. And the biggest investors in the world believe that gold is about to reach new highs in the months and years to come. Combine this with stockpiling from countries like China and Russia and you have a hot commodity on your hands.
Take time to learn about the top gold IRA companies in business today. You’ll benefit tremendously after researching the top players in this industry. Even better, you should visit their websites and sign up for their free gold IRA guides and investor’s kits. You’ll receive excellent information for free and move one step closer to becoming an avid gold IRA investor.