The Price of Gold and Your Retirement

Fluctuations in gold prices are brought about by many reasons, for example when the economy is doing badly and the bank lowers its savings interest rate. Why hide your money in the bank for little return? Why not invest in gold? Even in troubled times financial advisors usually tell the same story – spread your financial risk around. Look at various ways to keep your money safe but also ways that you might make a good overall return. One of the best investments at the moment lies with the precious metal, gold. All the things we value about gold – it’s rarity, softness, resistance to erosion or tarnishing – make it a highly unique precious metal. Precious metals are by their nature less reactive than most elements, and gold is no exception. Because of its brilliant colour, ancient people believed that gold must have come from the gods. Hence its widespread use in early religions. Gold was a natural metal to be used as coins – it was easily beaten into small pieces which were useful for carrying or transporting. There is a possibility that the gold that we use today has been re-worked from earlier items – so that gold watch you’ve been looking at may have had another life entirely! Most citizens of a country simply assume that the money in their pocket or in their bank account actually holds a real value. It may be difficult to understand but that paper money is underwritten by nothing but the assurance of the issuing government. Foreign exchange markets trade currencies against each other in real-time which sets the true value of all floated currencies around the world. When countries falter their currencies can devalue so much that they effectively become worthless. In times like this, those countries will often be forced to exchange gold to acquire international funds. In a way, people look on gold as a way to keep money safe. Because of the way people have valued it for centuries, many investors believe that gold will always hold a certain amount of value. that gold is considered to be a kind of safe haven when the rest of the world’s economies are looking in trouble.  If you are considering gold for your retirement, read up on gold ira reviews. Gold has kept its value despite the recent issues with the world’s financial markets, and the high levels of debt that countries – particularly in Europe – have disclosed. The value of gold is always a good indication of the health of the world’s economies. What is true today is that gold has maintained a good price because of the disastrous headlines making world news. The past few years have certainly proven that the concept of gold as somewhere safe to protect your money against falling interest rates still holds true. What is also true of gold is that you can profit from it even when the price goes down, for example, through buying an ETF that is short gold. It will be worth watching the valuations of your non-share assets as the US and Europe emerge from the GFC burdened with debt and focus on long term economic recovery. These changes could negatively impact pricing and valuations for the short term, but employment levels are at an all time low and governments will need to begin raising revenue to pay off what they owe. high levels of debt, commodity prices might fall in favor of shares in the short term, but longer term, inflation risks must come into play. It is inevitable that the debt levels of at least one western country will become a serious problem, short term there may be a drop in commodity prices, but we still haven’t worked out all of the problems with the system so people holding precious metals long term should do very well. You would be wise to maintain your holdings in precious metals now because while it might seem like the west is recovering, with massive unemployment and record levels of debt still to be confronted, the future is not all smooth sailing one would think. One must think that with outrageous levels of foreign debt and never before seen levels of unemployment for most western countries that precious metals and safe investments are going to be a good asset over the long term despite maybe some short term drops. Portfolio diversification is an absolute requirement for any investor who wishes to achieve a level of financial security in the long run. With the commoditization of share trading and the rapid improvement in the technology, it became very easy for many smaller investors to get into the market and have direct control over their own portfolio. Items like gold have seemingly been less interesting to small investors and trading systems have made it difficult to transact in them. The GFC has seen many blue chip investments hammered over the past four years, but investors who had gold in their portfolios have seen the price double. Buying gold online is much easier now because the systems and programs have improved dramatically. Asset diversification is a true sign of a healthy portfolio and now it is easy for micro investors to as gold to their investment mix.