- June 2, 2011
- Category: IRA
Paper denominated assets like those found in Traditional and Roth IRAs and 401(k)s have been losing value due to the devaluation of the U.S. dollar. When the assets you have in stocks, bonds, and other paper assets lose their value, so does the value you will realize when it comes time to retire. Adding a portion of physical gold, silver, platinum, or palladium in a new Precious Metals IRA can compensate for paper losses by reducing or even eliminating them.
American Bullion knows that the best way to counteract these losses in your paper-denominated assets is to diversify your portfolio with assets that are negatively correlated with stocks and traditional financial investments. Here, physical gold is the optimum diversifier, because it is so negatively correlated when compared to stocks. Gold also has intrinsic value everywhere in the world and, as historically demonstrated, a unique potential for appreciation over time.
Many financial advisors know that diversification of your investments helps improve the overall performance of your retirement portfolio. Smart diversification requires locating and choosing investments that are not closely correlated. Since most stocks are rather closely correlated, and bonds are relatively so with other bonds and with stocks, today’s smart investors frequently opt to combine tangible assets like gold, platinum, palladium, and silver with their traditional assets in order to reduce risk and maximize growth potential.
Gold and other precious metals have had a very low correlation with stocks and bonds over time and have appreciated in value steadily. Gold prices may fluctuate up and down over short periods of time as supply and demand varies, but over the long term, gold has steadily increased in value. Gold has the ability to act as a hedge against the loss of purchasing power that occurs with paper money and in the assets backed by it.
Physical gold should be a vital part of any diversified investment portfolio today, since its value tends to go up due to occurrences that lessen the value of investments such as stocks and bonds. Perhaps equally important, investors can count on gold to maintain its value while other assets are losing value. In addition, gold has equal value everywhere, while the value of currencies of different countries can differ considerably at any given time.
A New Precious Metals IRA – The Optimum Choice for Today’s Investor
American Bullion converts millions in Traditional and Roth IRA holdings into gold and silver every month. This change-over is tax-free and penalty-free. In addition, a Precious Metals IRA can protect your retirement by securing your savings, permitting you to take control of your finances, and preventing further losses from paper-denominated assets in your retirement portfolio.
The Precious Metals IRA specialists at American Bullion are available to assist you in transferring or rolling over any desired portion of your existing retirement account (such as an IRA, former 401(k), etc.) into a physical Precious Metals IRA investment account. There is no tax penalty and no new contributions will be required. Our in-house IRA Processing Department makes the entire process simple, secure, and completely hassle-free.
For more information on adding precious metals to your retirement account, please call American Bullion toll free at 1-800-326-9598.