Should You Hold Gold In Your IRA?

Why You Should Hold Gold in Your IRA

Stability

Over the course of human history, hundreds and thousands of civilizations, companies, and currencies have existed, grown, thrived, and fallen. Each one of these civilizations has had one thing in common, each has recognized the value of gold!

Historians estimate that humans began using gold as currency all the way back in 564 B.C.! That means that humans recognized the value of gold almost 3,000 years ago and they still do today.

No matter what events have or will happened, human have always agreed on and will always agree on one thing: Gold is extremely valuable.

So, unlike any company, currency, or other investment in the world, gold has been here the longest and will be around the longest, making it the most stable investment over the entire course of human history (and all the increase in value is just a plus!)

Intrinsic Value

Unlike stocks and bonds, gold and other precious metals are real objects that draw their value from their usage. And gold has many uses across the globe in almost every industry!

Unlike every other currency on the planet, this intrinsic value helps gold hold it’s value long term. While other currencies, like the US dollar for example, lose value over time, gold will always hold its value (an ounce of gold is always worth an ounce of gold!)

Increased Demand and Limited Supply

There is a limited amount of gold on our planet. No scientist or company can magically create more or synthesize more in a lab. What we have is all that we have and all that we will ever have.

Despite that, there is a near unlimited amount of uses for gold, from jewelry to computer chips to dental equipment.This means that gold is always in demand, despite being in in limited supply.

Investing in gold while you still can is an investment in the future of these industries. With an increase in technology, and therefore an increase in demand for gold, the supply of available gold will continue to decrease.

Why You Shouldn’t Hold Gold in Your IRA

Price Volatility

Like any investment, the price of gold is always changing due to, among other things, monetary policy, supply and demand, inflation, and macroeconomic conditions. These price fluctuations may be too much for some investors.

But, if you understand the long term investment horizon that comes with investing in an IRA and trust the value of gold as a long term investment, then these fluctuations will not bother you. Instead, you will only focus on long term price changes.

Costs and Expenses

While there are a lot of different ways to invest in physical gold, such as bars, jewelry, and coins, each have significant costs associated with holding them. Properly storing gold requires a secure space, and these spaces can be quite costly.

Also, most of these secure spaces, lockers, and vaults charge ongoing monthly, quarterly, or yearly fees, so storing gold will come with regular, recurring expenses. This is called a Gold IRA Custodian.

No Interest Earned

Unlike tradional investment options that may offer interest or dividend payments, gold does not offer any regular payments to the investor. The only returns that the investor receives from holding gold are price increases and growth. Also, the only way to get money out of the gold investment is to sell a portion or all of your gold.