Why Many Investors Feel Gold IRAs Might Be A Safe Haven In Difficult Times
Investors, including those who are saving money for their retirement, are often concerned to maintain a balance in their investment portfolio. It is a fact that some investments perform better than others but involve a higher level of risk. It is usually recommended that a balanced portfolio contains a mixture of assets, including equities, bonds, real estate, cash etc. At times when the stock market experiences turbulence, and falls in value, many investors move to safer types of investment. These can include precious metals, such as gold, silver and platinum. Not all retirement accounts (IRAs) allow the holding of precious metals, but there are some gold IRAs, and those who are pessimistic about the economic outlook may prefer to hold some funds in these as part of their portfolio.
The lasting effect of the sub-prime mortgage crisis has been a recession and slow recovery throughout the world. Many are now concerned that a second debt crisis will occur as many governments have tried to deal with the recession by heavy borrowing.
In Europe there have been bail-outs (organized by the European Central Bank) to help several of the weaker nations (Ireland, Greece and Portugal). The possibility that this crisis could spread to larger economies such as Spain and Italy is a big concern. All these countries seem to be in difficulty because they are tied to strong economies (particularly Germany) through the single European currency.
In the US the dispute between the president and the legislature over raising the debt ceiling was the catalyst which led to the country losing its top AAA credit rating for the first time in its history.
As fears have built up over the economy, share prices have fallen, and the US and Eurozone national debt issue means that holding cash or government bonds no longer seems as safe as it did in former times. For many investors seeking a safe haven, gold and other precious metals now seem to be the best choice, and as a result their prices have soared.
Those who are saving for their retirement in an Individual Retirement Account (IRA) will often have the flexibility to move funds between different types of investments. Although not all IRAs allow precious metals, there are some gold IRAs, and many investors may now feel that holdings in these provide the best protection against the economic turbulence which we are currently experiencing.
Gold IRA Specialists can help you set up a Silver 401k account or answer any questions you might have. Simply call a specialist to inquire about Gold IRAS today, toll free at 1-855-655-4653 to get started.
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