As the American people stand by and watch President Biden destroy the nation from the inside out, we are all concerned for different reasons. Some of us have seen the changes these stronger storms have had on our land, or we’ve been victimized by the horrific tax increases we are suffering under his leadership. For many, it’s been difficult transitioning between jobs.
Moving job to job can make keeping your profit sharing, IRA, 401k, and other investment accounts straight very difficult. Considering only 49.5% to 58.1% of people aged 24 to 64 have a retirement account, many are already far behind the curve. Thankfully, there is a surefire way to not only catch up but be right on time if you play your cards right.
Naturally, of course, I’m talking about precious metals. Gold, to be specific.
This glistening metal has been important to mankind for generations and for different reasons at different times. For some ancient native tribes, it was the souls of their ancestors returned to earth to adorn their bodies and protect them from evil. Others used gold for hunting, and others still used it like we do today and to trade for things. Much like beads and other things, gold was seen as scarce and very valuable.
Today though, gold is more important than ever, and because of four incredibly distinct and unique reasons.
- Diversification. If you’ve ever had your car broken into at college or high school, and you lost all your CDs or tapes, then you learned a valuable lesson about keeping all your eggs in one basket. The same is true for investing. Much like your portfolio should be comprised of traditional slow growth ‘blue chip’ stocks, it should also have newer businesses and some risk to it as well. Gold is just another long-term, slow-growth kind of investment.
- A hedge against inflation. Gold tends to move inversely to the US dollar. At times when inflation is high, gold can keep your purchasing power on target. Those looking to make the most of owning gold will do best by having 5 to 10% of their investments in gold, according to numerous experts. The stability it inherently has, combined with the ability to ride the waves in the stocks and bond market, make this the perfect investment percentage.
- Long-term holdings. This stable price means gold has been a slow-growing precious metal. It had slow growth until 2003, but in 2010, it hit its real growth in price. While things have started to settle down in more recent years, the surge between 2010 and 2023 put gold into a long-term hold spot and kept it at a price still accessible to most investors.
- Reliability. In the event society collapses, it will only be a matter of time until a bartering system has been established. While goods like eggs, milk, and bread will, of course, be in high demand, metals like silver, gold, and platinum will be the cornerstone of this market and ensure it stabilizes. With gold as one of the first backing materials for American currency, it is only natural to return to it.
This kind of investment is something easily passed down from generation to generation, and a great way for many to avoid inheritance tax, simply because it’s not a transference of physical money. It all depends on how much of it there is and how it is being stored. Gold in a vault or a safety deposit? It will take paperwork, and taxes would be leveled. Some ingots and small coins? Under the limit.
For those who are uncertain and just want to invest more traditionally, there are gold-backed IRAs available. While the security of a tangible asset and metal in your hand is then gone, it is an option most enjoyed by those on the go or those with significant amounts invested.