A lot of people have been buying gold over the past few years. For some investors, gold is a vital
part of their portfolio. While other investors buy gold in smaller amounts. Either way, it is beneficial for an investor to consider gold. Here are three things every potential gold investor should consider.
Many of the largest economies are facing problems due to unsustainable debt loads. When currencies suffer, investors suffer. One way to hedge this is to invest in gold. For example, an American living in the United States would have done well with gold as the dollar has fallen against major currencies.
One thing about gold is, nobody is making any more gold. The housing and stock market can go up and down, but gold should continue to rise in value. Housing is cyclical and can vary from region to region. In reality, with countries such as China and India growing, gold is going to be in demand for years to come. Anyone who is thinking about gold only has to look at the last five years of equities and housing to know why gold is a safer bet.
One of the biggest benefits of gold is the simplicity. Anyone investing in other areas may have a lot more research ahead of them. With gold, an investor can make their purchase and go on with their lives. On the other hand, investments such as real estate or stocks are difficult. With real estate, an investor must follow local issues and constantly deal with problems. With stocks, an investor must follow the markets and make trades according to trends and economic policies. Simply put, a gold investor can make their purchase and not worry about the future.
Everyone should invest in gold. While it should not be the only investment one makes, it should be part of an overall portfolio. When investing in gold, an investor is protected against deflation and a poor economy. When looking at the last decade, gold has outperformed other major investment groups such as real estate and equities. This trend should continue as nations struggle to pay off their debts, and the economy remains sluggish.
The most popular way to purchase gold in 2013 has been through a retirement account such as a 401k or IRA. If you are an American worker, you should receive 401k or IRA contributions through your employer. Ask your HR deparment if gold investments are allowed within your retirement plan. If they are not, you can always open a self-directed Gold IRA and make contributions through it. A self directed IRA makes you the own boss of your retirement account so you can invest in precious metals freely.