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Gold and other precious metals have withstood historic upheavals throughout human history to remain unscathed as enduring emblems of affluence and abundance. The scarcity of these limited resources, and the difficulty in mining and extracting them, has added extra luster and shine to their value.
Gold’s value has shown steady growth over time, many a time outshining traditional investment instruments such as currencies and stocks. The affluent have used gold as a hedge against economic downturns and inflationary pressures, safeguarding their legacy to pass on immense fortunes to their next generations.
Precious metals in their physical form, such as gold coins and bullion bars, are still a safe, judicious, and dependable haven for wealth conservation and merit serious consideration when planning for your estate.
Since time immemorial, precious metals have been a repository of value. In the opinion of many people, gold is a tangible asset that is both liquid as well as easily transferable, while fiat currencies are just paper assets, sometimes barely worth the paper they are printed on.
Gold and silver were the commonly used currencies for almost two millenniums before fiat currencies arrived on the scene. For a long time even after the advent of fiat currencies, countries based the value of these currencies on a gold standard, pegging them directly to gold.
Even today, central banks around the world procure and store gold, to shore up fiat currencies. This, apart from providing them a greater degree of fiscal flexibility, further validates the status gold enjoys in wealth preservation.
As economies around the globe bear the brunt of COVID-19 or Wuhan virus pandemic, gold prices have held firm, even climbing in value, while stocks and fiat currencies are tumbling and fluctuating. Such economic turmoil reinforces investor’s faith in gold as a store of value in good times or bad, and drives home the benefits of gold for them.
Unlike financial instruments like stocks and bonds, there are practically no regulatory obstacles holding up the sale, purchase, or trading of physical gold. Relatively stable and risk-free, gold is a time-tested and proven hedge against financial meltdowns and market downturns.
Investors turn repeatedly to gold and other precious metals in times of crisis, as seen during the 2008 housing market collapse and the downturn brought on by the current coronavirus pandemic.
Central banks are pumping in more money by printing and increasing the supply of currency. Implementation of quantitative easing (QE) policy to increase investments also places additional inflationary pressures on the economy.
While the idea behind low interest rates and more liquidity is to extend credit lines to struggling businesses during an economic crisis, it invariably erodes the value of money and leads to inflation. This, in turn, exerts downward pressure on prices of almost all investment instruments with the exception of gold, as its value typically witnesses a growth with inflation
Investment experts and analysts highly recommend investing in gold and other precious metals to diversify portfolios. Investors look towards an asset class to not only maintain its value but also show growth over a period of time. Gold can prove to be a stable asset in an investor’s portfolio, besides retaining value and being a hedge against downturns in the market.
Gold is a terrific investment to add to any portfolio, with its combined benefits of minimizing risk and providing long-term gains. It plays its role of a counterweight, as well as a store of value, to perfection. In an upswing, it is purchased as an investment for the future, while in a downturn it balances the portfolio.
Physical gold, in bullion bars or coins, can prove to be a valuable asset vital for wealth protection and the future of your loved ones. You need clear planning and foresight, to ensure the purchase, storage, and security of your gold legacy in a professional manner.
Tangible assets such as gold and other precious metals require special consideration while planning your estate. As already discussed above, gold can be a perfect investment for the transfer of wealth to the next generations. It is one of those very select assets that grow in value over time and can be easily redeemed with nominal costs and minimal inconvenience.
Mostly, people purchase precious metals in their own name, but some investors use a foundation or trust to do so. It provides flexibility in bequeathing the asset, with an appointed third party carrying out your instructions when the trust sets in motion. These instructions can specify how to distribute the assets according to your wishes.
A trust is designed to protect the privacy of your beneficiaries, along with protection against litigation and taxation. In addition, handling matters pertaining to your estate become easier, as a trust helps to avoid probate and other potential legal expenses.
The inclusion of precious metals ensures diversification in your investment portfolios and bolsters the legacy you can leave behind for your loved ones. With your sensible and well-timed investments in precious metals, your future generations can continue to reap the benefits for a long time to come.
A gold IRA is akin to an ordinary IRA, except for the fact that it deals in physical gold bars and coins instead of paper currency. A gold IRA provides you the security of owning physical assets, in addition to the tax advantages that you get from a traditional IRA.
With global economic markets in the doldrums, this is the best time to invest in precious metals. We can help you make smart and secure investments in Gold IRAs that will protect and preserve your legacy well into the future. Whatever your estate planning goals are, let us help you take the right steps that will ensure prosperity and peace of mind for you and your next generation.
A gold IRA can help you bring significant stability and balance to your investment portfolio. It may be the key to delivering outsized returns and protecting your wealth in times of extended economic uncertainty. We recommend below a few best-value and reliable IRAs:
If you are thinking of investing in a gold IRA, it is best to seek guidance from an accomplished financial advisor who can help you determine the right mix of investment options for your retirement portfolio.