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Is Investing in Gold Worth it?
I don't want to give you the impression that investing in gold is the holy grail of financial improvement or even retirement planning. Just like stocks and shares, the price of any investment goes down as well as up. You can see that for yourself on the two charts above and below. But what I do want to do is give you the facts so you can make up your own mind as to whether investing in gold, is a worthwhile investment or not.
It is well documented that over the lifetime of the stock market, all the precious metals, have been outperformed by stocks. Having said that, this did change recently in a dramatic way. Precious metals have outperformed the Dow Jones on a rather impressive scale, since the start of the new millennium in 2000.
You will see in the chart taken from Yahoo Money (chart also available here) that shows that when the market opened on 1st January 2000 it opened at 11,700 and when it opened again on the 1st January 2015 it opened at 17851.04. This means an investment in the stock market at the start of 2000, would have received a return 52.6% on Jan 1st 2015.
However, if you had been investing in gold, over the same time period, the result would be very different.
The chart to the side here, courtesy of Kitco.com, shows that gold was at the price of $283 an ounce at the start of the millennium and it opened at the start of 2015 at the price of $1206 an ounce. That is a return of 326% - a big difference from the 52% gained from the stock market over the same period.
So yes, people may tell you that historically stocks have outperformed gold, but as the evidence clearly shows, this has changed and the fact that it has happened consistently over a 15 year period, and not just a one off then this type of investment may be worth looking at, if you haven't already.
Please note that the content on this website does not constitute financial advice and should not be taken as such. The owner of this site may be paid to recommend Regal Assets or other companies. The content on this website, including any positive reviews of Regal Assets and any other reviews, may not be neutral or independent. It is advisable to always speak to a certified financial advisor before making any investment decision.
Investing in A Gold IRA Rollover
When considering investing in gold, one area that is currently getting a lot of attention is investing in a gold IRA rollover. With more and more people looking to hold their assets in IRA's, precious metals within an IRA is becoming a more viable option.
The chart to the side shows the increasing amount of assets put into IRA's since 2000. Of that, up to 4 percent of it is in non-traditional forms, such as precious metals. Although a gold IRA operates in the same manner as a traditional one, the main difference, of course, is it holds physical bullion rather than paper assets. There are a number of factors that need to be taken into consideration when taking out a gold IRA rollover. For one, the best way is to use it for diversification and not put all your retirement eggs in one basket. You want to ensure you use the best custodian you can get to set up your retirement account for you.
The benefit of a gold IRA rollover is that you don't need to take out another one, you can choose to rollover some or all of your current IRA into the new version. Also, it doesn't matter if your IRA is traditional or Roth or if you have a 401(k), the ability to roll part or all of it is available to you. Whichever rollover specialist you talk to, they can advise you accordingly in relation to the best way to roll your existing plan into a gold funded plan.
Why Consider A Gold IRA Rollover?
With the price of oil currently falling and at a rapid rate, and the stock markets starting the year with a decline, a lot of people are showing concern with regards to their investment portfolios especially those connected to their retirement plans and this is one reason why they are looking to invest in alternatives. The gold market is an alternative and is a great way to increase financial protection by diversifying investments into something like a rollover.
Some Facts About Gold's Performance
In 1997, Congress passed the Taxpayer Relief Act which allowed investors to put away gold and other metals into a self-directed IRA. They were responding to investors who wanted to diversify their retirement portfolio from paper assets like cash, stocks, and bonds to add some tangible assets.
Who Should You Set Your Gold IRA Rollover Up With?
You can check out my full gold IRA rollover company reviews by clicking here and get a full explanation as to who is the best provider and why...
Or You Can request a Free Gold Kit by clicking on the image below