- August 16, 2011
- Category: Gold IRA
The familiar Traditional and Roth IRAs containing paper assets have been declining in value because they are subject to the worth of the U.S. dollar. Today’s investors are discovering that gold-backed IRAs have been steadily increasing in value and therefore provide far better safety and appreciation for their holders. Here’s why:
When investors design their portfolios, three factors are of the most importance: safety, diversification, and potential appreciation. For many people, this begins with a 401(k), a Traditional IRA, or a Gold Roth IRA. These may be comprised of cash and/or paper assets such as stocks and bonds. The goal, of course, is to have the value of these IRA holdings remain stable and increase in value before it becomes time for retirement.
The Current Economy Jeopardizes IRAs with Paper Assets
Since early 2008, when the economy began to decline due to bank failures, rampant mortgage foreclosures, and other problems, the value of the U.S. dollar has taken a beating. As the dollar has devalued, so have the paper assets backed by them. Conventional and Roth IRAs also declined in value. Then, the term “diversification” had new meaning to many investors who were asking “What other assets can we purchase that are not subject to so many financial problems?” The answer is obvious. Gold has always been considered a safe financial haven during troubled times. It is also one of the best hedges against inflation.
Gold Roth IRAs Offer Safety, Appreciation, and a Hedge Against Inflation
While the value of the U.S. dollar and other key global currencies has declined, gold has continued an upward trend as shown in the 5-year Kitco Metals graph below:
The above graph shows clearly that gold has remained a safe investment and has appreciated steadily over the 60-month period charted. The U.S. dollar, however, has suffered a steady decline, especially since 2008. In addition, gold prices increased more than 450% since 2000. At the same time, the Dow Jones Industrial Average gained just 20%. The advantages of converting from paper assets to gold are clear indeed.
Converting to a Gold Roth IRA Is Easy
Currently, millions of dollars in IRA holdings are being rolled over into gold and silver each month. Making this conversion is completely tax and penalty-free. Our IRA specialists can easily assist customers in transferring all or a portion of their existing IRAs or 401(k)s into a physical gold Roth IRAs. The entire process is simple, secure, and hassle-free. You can either take possession of the precious metal assets immediately or have them stored in an IRS-approved secure depository such as Delaware Depository until you need them.