The actions taken by the Federal Reserve during the peak of the financial crisis of 2008-2009 were so extreme in measure that their effects are likely to be felt for years to come. No one knows for sure exactly what will happen as a result of these actions even though we are now years apart from when they first started. If history is any guide, it is now a great time to get invested in gold. Many experts expect that rapid inflation is going to grip the world economy as it deals with all of the extra paper money that is now in the system. As a result, the price of gold is likely to climb even higher than it is now. This is why you need to get invested.
Gold has climbed to record high prices now at more than $1,500 per ounce. However, it is likely going to climb higher. You need to decide how you are going to get invested in it. One way is obviously to purchase the actual commodity itself. By doing this, you are going to be able to hold this precious metal in your hands and sell it whenever you feel that the price is right. This can be done through the purchase of gold bullion coins which can be purchased from any dealer of these materials.
There are other ways in which one might acquire the gold investments that they need. For example, those who have established an IRA account can have that account rolled over into gold IRA investments. This is very simply the process of changing the types of investments that your IRA is currently invested in. The best way to do this is by simply calling up the investment house that holds your IRA and having them switch it over to a gold IRA fund.
Finally, you always have the option of investing in individual gold mining companies. This is a little more risky as you are going to have to choose the companies yourself on an individual basis. However, you are also going to enjoy the higher potential rewards from this type of investment strategy as well.
In the end, the way in which you invest in gold is a little less important than the fact that you just get invested in it in the first place. Those who take the time to do this are very likely to be very happy in the future as they watch gold prices continue to climb against inflation. Do not allow your money to be eaten away by inflation. Enjoy the ride by investing in gold.
You might be wondering why you’ve been hearing about gold so much lately. Truth is, many banks, governments and investors have been stocking up on gold since the economy became unstable. The situation in both the United States and Europe is making the investment landscape extremely slippery. Real Estate, stocks, bonds, mutual funds and virtually every other traditional type of investment is not giving investors a good return.
Should I invest in gold?
It is generally a good idea to diversify your portfolio as much as possible. No one knows for sure that the future holds for gold, but it’s looking promising right now. What you have to understand is that gold tends to behave in an opposite manner as paper currency. When the dollar and euro are weak, the dollar goes up. If you invest in gold as part of a well diversified
investment strategy, you can only win!
How is the value of gold determined?
unless we develop the technology to be able to go mine other planets, the demand for gold will always be higher than the supply here on our planet. This is one of the main reasons why the value of gold keeps increasing. You can learn more here. Also, keep in mind that the 2 biggest countries, namely India and China, are the biggest consumers of gold. Their demand for gold keeps rising year by year. Even their central banks now prefer to stock up on gold instead of stocking up on the US dollar.
How to invest
There are different ways you can invest in gold. You can buy various gold bullion coins, bars or you can invest through your 401k or IRA. Is this last option news to you? You’re not alone, it seems that many Americans ignore that they can invest in precious metals through their retirement account. If you own a 401k, speak to your HR department to see if they allow gold holdings through their custodian. If not, you can always open a self-directed IRA only to invest in gold.
When is the best time
Yesterday. The predictions for gold prices this year are good. Many expect the price to reach $2k per ounce by the end of the year. Time is not on your side when it comes to gold investing. Gold will most likely never go back the price it was at 10 years ago. Speak to your investment advisor to discuss your options. Try to invest through a gold dealer that can store the gold for you in a secure location. Holding the gold in your basement is definitely not a good idea. The risk factor is too high!
Among all types of investment, gold has certainly been the least risky these past few years. Since the beginning of the worldwide economic crisis, all traditional types of investments such as real estate, stocks and bonds have been extremely unpredictable. Gold, on the other hand, has been constantly going up for the past 50 years, successfully going through several economic and political downturns.
With a partial Gold 401k rollover, you do not need to actually own physical gold. In fact, you can invest in a fund that includes gold as a type of investment. This way you do not have to carry your own gold and store it in your basement which is very risky.
If you would like to get started and convert part of your 401k to gold, the first thing to do is to talk to a professional and discuss how much you should invest in gold. Most analysts recommend that 15-20% of one’s total portfolio should be invested in precious metals such as gold and silver, but this is just a general figure and it should be taken on a case by case basis.
Also, it is a great idea to seek more information online before even talking to a professional. Learn more about how to do a Gold 401k rollover by reading online gold like GoldSilver.com from Michale Maloney.