The Precious Metal Investor
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What Jimmy Choos and Gold Backed IRAs Have in Common
November 5, 2013Gold Investinggold backed IRAs, gold custodians, Regal AssetsJoe Backer
If you’re anything at all like me, you’re too busy flicking through fashion magazines too worry about retirement plans.
Let’s face it, why in the world would a twenty-something fashionista like myself waste time worrying about her financial security in old age? But seriously, it’s actually no laughing matter, no matter what your age. Planning for a secure financial future should be at the top of everyone’s list, and the sooner you start the process, the sooner you can get on with enjoying your younger years.
Individual Retirement Accounts
It all starts with an IRA or Individual Retirement Account – it’s basically a retirement fund, like a savings account, but with very generous tax breaks. It’s designed to be an ideal way to start saving for your retirement and provide an income in your later years. Some retirement accounts are setup by your company and are known as 401(k)s, however the most common type of IRA accounts are those that are personally setup and managed. Now, depending on the kind of IRA that you have setup, it may be possible for you to leverage the funds in your IRA account to make other investments to diversify your assets and help protect your financial future. One of these investments that has rapidly grown in popularity in recent years is precious metals, and in particular, gold.
Gold is an extremely stable investment
For thousands of years, gold has proven to be an extremely stable investment and is the reason why it has become the most popular of the precious metals to invest in. Due to its versatility and multifunctional use in a wide variety of industries, it is highly prized and therefore is an excellent choice as a long-term investment. Now, ladies across the world will 100% agree with me when I say that they would much rather have a gold ring on their finger than a sterling silver one. This love for gold is the reason why it is commonly purchased and used as a ‘safe-haven’ investment and buffer in times of economic, socio-political or fiat currency uncertainty. Fiat currency refers to the paper money that is currently used the world over and is backed by government authorities. However, it is these governments, with their quantitative easing measures that cause the value of fiat currency to fall so dramatically.
Gold on the other hand, due to its universal demand and finite supply, is relatively immune from inflation and as a result always maintains its intrinsic value. What this basically means is that it is measured by its weight and its value per troy ounce. Because of the security provided by gold investments, many investors are now rolling over some of the funds that have accumulated in their IRAs and are purchasing various forms of gold products. Their IRA gold