Gold IRA Companies –

Reviews of Rollover Providers

If You Are Serious About Investing in A Precious Metals IRA  – Here Are A Few Things To Consider

On the remainder of this page, I provide you with some of the key facts and pieces of information you should consider if you are looking to invest in this type of individual retirement account.

With so many companies and specialists coming on the market, in addition to those who have built a reputation as the best custodians already, it can be difficult to find out which provider to use for your retirement. Here at TransFS.com, I have personally researched the various companies / suppliers for you, and provide the relevant information that I have found, all the pros and cons that will help you make the right decision when it comes to your financial future and your planning your pension.

HOWEVER – As you will already know, it is important that when making any financial investment, you are comfortable with your decision. Therefore please not only read what I have provided on these pages, but you also speak with any of the gold IRA companies that you like, over the phone.

Now when speaking to any gold ira provider, there are a few things you should consider:

 

IMPORTANT FACTORS TO CONSIDER WHEN CHOOSING YOUR PROVIDER

  • A quality company WILL be ethical – this means they will be above board, open and honest with you.
  • They WILL NOT pressure you into making a decision – a good provider will simply give you what you need to help with your decision.
  • They WILL provide you with all the information you need – the actual price of the metals, fees, how the process works etc, will all be readily available to you.
  • They WILL NOT attempt to not answer questions – No matter what you question, they will answer it for you, and not try and change the subject
  • They WILL allow you all the time you need to make your decision – If you want to go away and think about it, any good provider will let you do that, hassle free.
  • They WILL NOT try to sell you any other product such as collector coins, medals, paper money or tokens – This is key. Not all precious metals are allowed in an individual retirement account, (I’ve provided a full list of what is and isn’t allowed in your IRA, at the bottom of this page)but also, the commission that companies can make on collectible coins compared to gold or silver bullion allowed in an IRA, can be considerably higher, so please be careful that you are not sold something that is no good to you.
  • Finally, a quality provider will have a clear fee structure & not penalize you with higher fees the more you invest.

What Did I Base My Findings On?

As I carried out my independent reviews of the top companies, I based my results on the most important and relevant information I felt is needed to consider who are the best for your 401k or ira rollover. (you can check out the individual company reviews via the navigation to the side). I have based the reviews and the scoring on 6 key elements.

  1. The companies BBB rating (click here for information on how the BBB rating works) and the number of complaints that have been registered in the last 3 years.BBB & Trustlink logos
  2. Their Business Consumer Alliance rating.
  3. Their Trustlink rating which is determined by the number of reviews and score they get out of 5 from previous customers.
  4. Whether they provide an IRA facility or just sell precious metals
  5. The fees they charge.
  6. The quality of customer service

Based on this information and further information I’ve outlined at the bottom of this page, you can see which company comes out on top as the leading gold IRA provider.

Who Are The Best Gold IRA Companies?

I have reviewed over 20 various gold companies and providers. Out of these companies, and taking into account the 6 points above, the table below shows you the top 4 companies within the industry.



Accounts

Free Trial

Projects

SSL

Storage

Domains

Regal Assets

First Year FREE

then $250 a year

A+ Ratting With Better Business Bureau


ZERO Complaints With BBB in last 3 years


AAA Rating Business Consumer Alliance

ZERO Complaints With BCA in last 3 years

5/5 Star Rating With TrustLink

Based on over 800 Positive Reviews on TrustLink

FIRST CHOICE

Cornerstone Bullion 

$260  a Year

plus other fees

A+ Ratting With Better Business Bureau


ZERO Complaints With BBB in last 3 years


AA Rating Business Consumer Alliance

ZERO Complaints With BCA in last 3 years

5/5 Star Rating With TrustLink

Based on 3 Positive Reviews on TrustLink

Lexi Capital 

$60 a Year

Plus other fees

A+ Ratting With Better Business Bureau


ZERO Complaints With BBB in last 3 years


AAA Rating Business Consumer Alliance

ZERO Complaints With BCA in last 3 years

5/5 Star Rating With TrustLink

Based on 3 Positive Reviews on TrustLink

Apmex 

Fees Various

Depending on Investment

A+ Ratting With Better Business Bureau


36 Complaints With BBB in last 3 years


AAA Rating Business Consumer Alliance

ZERO Complaints With BCA in last 3 years

5/5 Star Rating With TrustLink

Based on 1 Positive Reviews on TrustLink

Why Do I Recommend Regal Assets?

Regal Assets logo- leading gold ira company

Based on the aforementioned considerations, plus a few additional factors that set them apart (I’ve outlined these below) Regal Assets comes out as the top company. There are gold IRA companies that have a more extensive range of coins, there are others that have been in operation longer, there are even those that are bigger and have a larger turnover than Regal Assets, but the track record of customer service and positive reviews that Regal has is exemplary. Below I have outlined the reasons why Regal Assets is my number one choice. I do of course encourage you to check out not only the reviews I have given other companies, but also to speak to them as well. The more information you can gather before you make such an important decision as to who should manage your ira rollover, the better. Hopefully with the information provided, I have made the task that little bit easier for you.

BBB Rating – The very top rating a company can have with the Better Business Bureau is A+, along with zero complaints within the last 3 years. Regal, along with 15 of the 22 companies that I have reviewed, have this rating, making them one of the top companies within the industry

BCA Rating – The Business Consumer Alliance top rating is AAA. This means that the BCA give a company an exemplary rating. They have nothing on record that would cause them to have any doubt about the company’s reliability. Out of the 22 companies I have reviewed, 6 have a triple A rating from the BCA, of which Regal is one of them.

TrustLink Rating – Trustlink’s rating is made up of reviews from customers of the company, be they positive or negative reviews. These reviews determine the overall score of the rating given to the company. A company could get 5/5 but based on just one review, whereas another company could get 4/5 based on 100’s of excellent reviews but a few ‘ok’ ones that bring the score down slightly. So if a company has 5/5, is it based on one or two reviews or is it based on hundreds? Regal have a score of 5/5 based on over 800 reviews, the next company I reviewed, has a score of 4.2 based on 40 reviews

Inc 500 – In 2013 Regal Assets were ranked 20th for financial services in the top 500 companies in the United States, out of 6 million private corporations. (you can see statement here) This achievement is an indication of the quality service that the company offers its customers. This, along with the high number of positive reviews on TrustLink, the triple-A rating and no complaints from the BCA, along with the A+ rating and no complaints logged with the Better Business Bureau, is why I have rated Regal Assets my number one choice as gold ira rollover company.

What Else You Can Expect From Regal Assets

First years fees covered – including admin, storage and delivery.
One of the fastest transfer processes, 24 hours if you so wish
Fast account fulfillment – 7 business days meaning you don’t lose out on interest
Complimentary gold IRA rollover kit which includes:
  • A DVD copy of the award-winning documentary on the secrets of the Federal Reserve;
  • Forbes magazine investment guide;
  • Guide on how to rollover your IRA & 401(k)
  • And a special report on the performance of gold since 2008.

(other companies offer an information kit, but there are some that charge you for it)

Get Further Information From My First Choice Company

Or Telephone: 1-855-628-9249

Other Gold Providers Reviewed

Additional Things To Consider When Choosing Your IRA Company

if you are seriously considering looking to convert your IRA or even your 401k into a gold IRA (because your investment options are more limited in a 401k account than within a precious metals IRA*) then there are a number of things you need to consider when talking to any company.

Feesworking out fees image

You will see from the table above that all of the companies charge various fees. Some charge you a fixed fee while the majority charge either a mix of fixed and percentage or the fees vary depending on your investment. The problem with various fees is the more your invest, the more you are being penalized. In addition to standard fees, you need to consider custodian fees. You will see when looking at the reviews, that the companies either have a custodian attached to the IRA or they recommend third party custodians. This means that the fees you are charged can differ from one custodian to the next and therefore, fees will vary greatly. Because some companies have complicated fee structures, you may want to get all the fees clarified and in writing before beginning your rollover.  So you may want to consider companies with flat fees and have custodians within the company so that you know what you are being charged for before you start.

Now because as I mentioned, some companies have complicated fee structures, don’t let that put you off from investing for your future. The return you get from investing, far outways the investment in fees. There are three areas of fees that you will need to get clarified from your provider so that you know what you are paying for your investment. The three areas of fees relate to the three sections of your gold ira; The provider, the custodian and the depository where your investment will need to be stored.

What You Will Need To Get Clarified With Your Chosen Provider Concerning Fees

  • The fee for opening a precious metals ira. This kind of individual retirement account is a tax deferring account which means it can only be opened by an IRS approved custodian. Each custodian charges differing fees, so if the provider you chose recommends a number of different custodians, you will need to check with each one on the fees they charge. Normally you should expect to pay around $50 to open a new account.
  • Fee for carrying out your transaction. When buying your metals to be added to your IRA for the first time, or if you subsequently invest more gold etc at any time, you will need to pay a transaction fee, also, this fee will be applicable  if you choose to sell any of your investment too. This also varies from custodian to custodian, but you can expect to pay something in the region of $40 per transaction.
  • Fee for maintaining your account. This is another varying fee depending on the custodian, but because of the importance of maintaining your account, a large number of custodians put this fee on their website. The range of the fee varies but can be from $50 to £250 plus a year, depending on the custodian.
  • Fee for fund transfer. When you make your investment for your IRA, the transfer of it in to your account is done via wire transfer and this generates a fee. Each transfer is usually around $25.
  • Fee For Storage. I mention below that when purchasing gold, silver or platinum, its storage is vital otherwise you will be liable to pay tax. Once your purchase is complete, you will want to get it stored in a depository. The fee for depository storage varies from the depository to depository, but also how you store your investment too can effect the yearly fee. You may want to have your metal segregated from others, this will, of course, increase your fee. You should expect to pay between 0.5-1% of the value of your assets by way of a depository annual fee, plus any extras you choose, such as segregation.

Is Your Gold IRA Custodian Licensed by the IRS?IRS Logo

A custodian must be properly licensed by the Internal Revenue Service. There is a register of companies who are eligible to look after your account  and whichever company you choose, they can confirm that the custodian they use is on that list.

What you also need to be aware of, if you are not already, is that a custodian is not allowed to offer actual financial advice nor can they sell you any investment products. The role of your custodian is to carry out the purchase and administration of your gold ira investment. In other words, they simply act on your behalf, they don’t advise you, that is the job of your provider or financial advisor.

Make Sure Your Company Uses A Quality Depository

When purchasing gold. silver, or platinum for your IRA, storage is vital. Because the government sees these investments as cash since they can be liquidated easily gold ira depositoryanywhere in the world, you will be liable for tax on your bullion or coins if you hold them at home. To appreciate the tax benefits of having a precious metal IRA, the metal you purchase for your rollover /retirement account must be held by a private depository of your choice in the US. Not only that but any good depository will allow you to visit any time you please.

A depository as you know is a secure building that is managed and protected 24 hours a day, 7 days a week. There are many depositories located all around the US, so when setting up your rollover, you should be allowed to pick the nearest one to where you live. Furthermore, you can determine the quality of the depository by the quality of their insurance and legal separation.

Depository Insurance & Legal Separation.

I mentioned in the section on fees that you can if you so choose have your metals segregated from others, but that is not what I mean by legal separation. You want to make sure that the depository you use is insured to a high value (not all are) but also that they DO NOT take ownership of your assets in any way while they are being stored. The reason why this is important is because should anyone take legal action against the depository, your assets will be protected and not levied against the claim if they have not taken ownership.

Variety in Investment

When you contact the company of your choice, it is best to know beforehand what exactly you want to do, if at all possible. Do you simply want to buy by way of collectibles or are you looking to rollover your IRA for your retirement? Do you want to buy just gold or do you want to own other metals such as silver, platinum or even palladium? Any quality company will not only have a selection to choose from but they will allow you to choose whether you want just gold, or you want a mix of gold silver and other approved metals, in your IRA, if you so choose. If you are looking for your retirement account, then you need to be aware of what metals the IRS allow you to have in an IRA. I have put together a comprehensive list of the metals that are allowed, so you are sure you are investing in the best product.

Other things to consider

  • Has the company you want to use got a proven track record? One of the best ways of determining their track record is by the number of complaints and reviews they have on sites such as Better Business Bureau, Business Consumer Alliance, and TrustLink.
  • Also, you may want to ask them what their average set up time is? Any good company won’t delay the setup of your account or the shipping of your order, too long, but check with the company what the time frame is from start to finish.
  • Additionally do they offer ongoing support? Once you have ordered from them and they have set up your account, will they offer you regular support? Will any support and guidance come from them or the custodian?

Hopefully, these questions will help you to determine which company is best suited for you and what you can expect once the account has been set up and your order has been shipped.

* = Any IRA whether a Traditional or ROTH is able to be rolled over successfully into a physical gold ira account. A 401(k) is a little more complicated and your eligibility to convert it into precious metals depends on a number of factors. If rolling over your 401k is something you want to consider, then your IRA custodian will be able to advise accordingly.

What Precious Metals Are Allowed In An IRA?

Precious metal, and in particular, gold IRA’s are becoming more and more popular amongst investors, so the question has to be asked, are you allowed to put any precious metal into an IRA? The answer to that is two part:

  1. You can put varying precious metals into your IRA (see list below)
  2. You can’t put any purity grade of precious metal into your IRA

There are strict guidelines as laid out by the Inland Revenue Service as to what precious metals can be used in an IRA and the purity level required for each metal. Below I have listed out for you what precious metals can be used, the purity level required for investment in an IRA, and therefore, what bullion and coins meet the required standard for investment.

Gold Allowed in IRA

silver Allowed in IRA

Platinum Allowed in IRA

 GOLD BULLION & COINS APPROVED BY IRS FOR INVESTMENT IN AN IRA MUST HAVE A PURITY LEVEL OF .995% OR HIGHER SILVER BULLION & COINS APPROVED BY IRS FOR INVESTMENT IN AN IRA MUST HAVE A PURITY LEVEL OF .999% OR HIGHER  PLATINUM & PALLADIUM BULLION & COINS APPROVED BY IRS FOR INVESTMENT IN AN IRA MUST HAVE A PURITY LEVEL OF .995% OR HIGHER
  •  AMERICAN GOLD EAGLE COINS
  • AMERICAN GOLD BUFFALO COINS
  • AUSTRALIAN GOLD KANGAROO/NUGGET COINS
  • AUSTRIAN GOLD PHILHARMONIC COINS
  • CANADIAN GOLD MAPLE LEAF COINS
  • CREDIT SUISSE GOLD BARS
  • JOHNSON MATTHEY GOLD BAR
  • VALCAMBI GOLD COMBIBAR
  • AMERICAN SILVER EAGLE COINS
  • AUSTRALIAN KOOKABURRA SILVER COINS
  • AUSTRIAN PHILHARMONIC SILVER COINS
  • CANADIAN SILVER MAPLE LEAF COINS
  • MEXICAN SILVER LIBERTAD COINS
  • JOHNSON MATTHEY SILVER BAR
  • ROYAL CANADIAN MINT SILVER BAR
  • AMERICAN EAGLE PLATINUM BULLION COINS
  • AUSTRALIAN KOALA PLATINUM COINS
  • CANADIAN MAPLE LEAF PLATINUM COINS
  • ISLE OF MAN PLATINUM NOBLE COINS
  • CANADIAN PALLADIUM MAPLE LEAF COINS
  • RUSSIAN BALLERINA PALLADIUM COINS
  • BAIRD PALLADIUM BARS
  • CREDIT SUISSE PALLADIUM BARS


With the number of suppliers and outlets, that provide gold by way of bullion or coins, it is vital that you know what is not allowed as part of your IRA. Although the list above outlines what is allowed in an IRA, please be aware that collectible coins are not eligible for adding to an IRA, no matter what a dealer tells you.

You can, of course, buy collectible coins as a separate investment, hold on to them and sell them in the future when hopefully their value has increased, but you cannot under any circumstances add them to your IRA.

Precious Metals Not Allowed In An IRA

Below I have listed the different bullion and coins that have become popular over the last few years. Just because their popularity has increased, does not make them eligible for an IRA. When purchasing these coins, make sure you are doing so simply from a collectible view, and not for an IRA. Again I reiterate, that even if your supplier tells you these coins are suitable for an IRA, the reason they are saying that will probably be to get a sale and you will lose out.

COINS NOT ELIGIBLE FOR A PRECIOUS METALS IRA

Austrian Corona – British Britannia coins – Chilean 100 Peso – Chinese Panda coins – Dutch 10 Guilder – French 20 Franc – French Napoleon coins – Israel Tower of David coins – Italian Lira coins – Mexican 50 Peso – Mexican Gold Peso coins – Russia’s George the Victorious coins – Somalia Elephant coins – South African Krugerrand coins  – Swiss 20 Franc – Switzerland Vreneli coins – United Kingdom Sovereign coins – U.S. Buffalo Proof coins  – U.S. Liberty coins – USSR Chevronet coins

This list is not exhaustive and therefore, when buying coins for your IRA, only buy those listed at the top of this page in the section on coins that can be used.

If you are still uncertain as to whether to invest in a gold IRA or not, I’ve outlined below a few extra factors for your consideration.

What You Need To Know If Considering Investing in Gold. retired couple looking at gold ira companies reviews on internet

Investing in gold is growing in interest and the fact that you have landed on this page suggests that you are at least considering the option, maybe as part of your IRA if you have not yet made up your mind. But why should you, at least, consider investing in gold, along with adding it your  retirement account?

 Gold Investment From A personal Point of View

Further down the page I discuss how global economic powerhouses are putting their money into gold, and so the question has to be asked is it something you and I should do, and if so how?

There are a number of various reasons why you should consider investing in gold, especially as an IRA investment, none more than the diversification of your investment / retirement portfolio.

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 a great way to increase your financial protection by diversifying your investments into something like a gold ira rollover.

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.

Edmund Moy, who is the leading Strategist for The Fortress Gold Group and was also the Director of the US Mint between 2006-2011, stated the following an article he wrote in September 2014: (click here for original source)

By 2013, the total amount of assets held in all the Individual Retirement Account’s set up in the USA  totaled 6.5 trillion dollars, and out of that amount 2.5 – 4 percent were now in non-traditional forms, such as gold.

He went on to state:

And looking long-term, there are several risks that favor the continued growth in gold IRAs, such as the fragile global economic recovery, potential of aggressive inflation in the United States, growing concern of a major stock market correction and increased geopolitical risks.

When it comes to building a diversified investment portfolio, investing in alternatives from the normal investments, needs to be considered. The main reason being that diversification helps balance out the variances in values of other types of investment commodities. Sometimes an investor may be heavily invested in a particular type of investment such as stocks or ETF’s, but with a diversified portfolio, they may well have stocks from various sectors from the retail sector to the tech sector.

When one of these sectors, such as the oil sector, is going through a bad patch, as it is at the time of writing this, the chances are good that sectors such as retail or tech stock may be doing quite well. This not only balances out losses from the oil sector, but it can actually help to increase the value of a portfolio significantly over time.

Listen to Billionaire Investor Kevin O’Leary explain why he diversify’s his portfolio with gold investment

 

Investors Want More Diversification

True effective diversification is not just diversifying stocks and ETF’s, it is much more than that.  More and more investors are looking to broaden their horizons by investing in things like REIT’s, corporate bonds, gold, and silver, as well as stocks and ETF’s.

BullionVault, who are a leading peer-to-peer gold-and-silver-bullion exchange, based in London, recently produced their annual report and analysis on how varying assets have performed over the last 40 years (1976-2015) in both the UK and the USA.

As you can see from the facts below, although not the number one performing asset, gold has beaten other key assets in its returns over the past 40 years and has this century outperformed corporate bonds by a considerable margin.

ASSET PERFORMANCE LAST 40 YEARS

  • Gold’s 40-year change (+669% gross of costs) has beaten inflation (328%), housing (598%, excluding costs + yield) and cash (cumulative 535%).
  • Commodities have dropped below end-1975 levels (-3.05%);
  • REITs are the best-performing asset both since 1976 (9,177% cumulative on reported performance before costs) and also so far in the 21st century (up 484% since 1999);
  • Gold is the next best performer since 1999 (+340%) and then corporate bonds (160%);
  • Since 1976 gold rose in all 3 years when US stocks lost 10% or more, averaging 9.6% gains. It averaged 11.3% when REITs fell the same, rising on 3 of 5 occasions;
  • Cash interest rates have lagged inflation 16 times since 1975. Gold rose in all but 4 of those years, three of them 2013-2015;

Why No Portfolio Should Ignore Investing in Gold

When it comes to building a diversified investment portfolio, investing in gold  should seriously be considered. One of the reasons for diversification is that it helps balance out the variances in values of other types of investment commodities. As has already been mentioned, an investor may be heavily invested in stocks or ETF’s, but a diversified portfolio will have stocks from various sectors from the retail sector to the tech sector.

With all this being said, many people want to know how much this type of investment should be in a diversified portfolio. In addition, they want to know, why buy gold?

How Much?
The first thing to understand is that adequate levels of gold investment in a diversified portfolio should be somewhere between 5% and 10% of the entire portfolio. Some investors argue more is better, but levels from 5% to 10% are the industry standard.

A Shelter Against Volatility
The answer to why an investor should purchase this kind of investment is multifaceted. The first reason to invest is because it can be used as a hedge of protection against market volatility and inflation. Market volatility can affect the value of gold, but it typically affects it much less than other types of investments. One of the reasons for this is that the value of stocks, bonds and ETF’s are based on paper money and not in gold.

Protection from Inflation-Deflation
Inflation has always been a concern because inflation weakens the value of paper money. However, gold does not labor under the same constraints as paper money. It has a value that is established mainly through demand. Paper money can be weakened when there are shifts in power from one country to the next, or when there is some sort of political upheaval. In some cases, paper money can be rendered completely worthless, should the affairs of a particular country get bad enough. It is in these situations, gold benefits the investor.

Gold has had a remarkable performance during times of inflation and also deflation. Inflation is basically a period when the economy of a nation is struggling and the cost of living is high. During these times, gold prices tend to increase and that’s why it is often regarded as a ‘hedge against inflation’. Deflation, on the other hand, is when the economy is also struggling and business activity is quite slow. During deflation, it has been seen to perform well too. (check out my page on inflation and how it has impacted on us over the years)

Value
Another thing to consider is its value. While the value of gold did skyrocket some years back, reaching almost $2000 per ounce, it has since slipped to around $1200 per ounce (Current gold price can be found in the sidebar to the right). There is some discussion as to its value throughout the rest of 2016. Some experts are expecting gold to experience an explosion in value sending it closer to $2000 per ounce again. Other investors feel that while gold may not rise to this level, its values will steadily increase throughout 2016 and into 2017. Regardless, gold is at a good value and purchasing gold at current prices may be a wise investment as it is poised to increase in value, both in the short-term and the long-term.

The Various Options for Investing in Gold

Lastly, there are many different opportunities for an investor to purchase gold. It can come in the form of jewelry, collectible coins, legal tender numismatics as well as bullion. In addition, a gold investment can take the form of self-directed IRAs or gold backed investments, such as stocks in gold mining and refining companies. With coins being sold with as little as 1/10 of an ounce of gold, even an investor with limited capital can still invest.

It’s not difficult to see why it has been a popular investment for professional investors for many years. It’s also not hard to see why it still remains an extremely popular investment. If you’re looking to diversify your investment portfolio, but you’ve yet to venture into this kind of investment before, you may want to consider it now. With all the upsides of investing in it, it’s hard to ignore this valuable commodity.

Further Information About Why You Should Invest in Gold

let’s look at what a number of countries are doing

leading countries investing in gold graphWe are seeing countries like India and, in particular, China, increasing the amount of gold bullion they hold. Furthermore, Russia has recently started to devote its time to increasing their bullion reserves too.

This does raise the question, why? Why are these global powerhouses increasing their investiture in gold?

Charles Kadlec, a member of the Economic Advisory Board of the American Principles Project, wrote in an article that the US Federal Reserve had made it a goal to see the devaluation of the US dollar by 33%. You may think that this is mere unconfirmed gossip! It is not. It is simply a repeating of what the Federal Reserve Open Market Committee (FOMC) had already stated. It is their aim that over the next two decades the devaluing of the dollar is achieved. Furthermore, if there is an annual exceeding of 2% within the price level, then the devaluing of the dollar will be even greater. (click here for original source)

In 1971, the Nixon administration abolished the gold standard. The result, as you can see in the image below, was demonstrative to the value of gold as the value of the US currency weakened.

weak dollar

It is, for this reason, that we are now seeing countries like China, India, and Russia moving away from investing in the dollar. They no longer see the benefit of investing in it when it is clearly being devalued. Why the dollar is being devalued is speculative, but when you consider that since 2009 China has tripled its gold bullion reserve, purposely to strengthen their own currency, it can be clearly assumed that China’s aim is to make the Yuan more acceptable to foreign business interests that the dollar currently is and will be in the long term. (Article source )

‘A crisis commodity’
The reason why it is referred to as a crisis commodity is that it seems to maintain its value even when the economy is facing a crisis due to political reasons, war or other world tensions. It has been shown that its price goes up when there is political instability and people don’t have a lot of confidence in their governments. In times of uncertainty, a smart investor will not look at the stock market or real estate which is likely to be affected by environmental factors. Therefore, gold will retain its value in times of financial insecurity.

Increase in gold demand
Gold Investment within countriesIt has always been a high demand product in most emerging economies. In so many countries, it is considered as an item used to make the best jewelry and sold at a very hefty price. People will buy jewelry items made from genuine gold at absurd amounts simply because of the kind of value it gives. In fact, that is the reason why it will always be in high demand. (China increased its gold reserve by 57% between 2009 and July 2015).

Research has even shown that October is when gold is in the highest demand in most countries. This is because the wedding season begins in October in most countries and people invest in expensive jewelry during such occasions. Other than being used to make jewelry, gold bars have also been in high demand because they are regarded as a traditional form of saving. And among investors, the demand is even greater as the years go by.

Low production of gold
One of the things that may reduce its value is when it starts being produced more. But this is not expected to happen anytime soon. The production of gold is very expensive and only a few mining companies can be able to meet the cost. In fact, the economic crackdown has made it even harder for mining companies to invest in structural components that will boost the production of gold. This has made it even more difficult to mint gold. So its physical presence is stable and this minimizes the chances of pulling the price down.

All currencies are based on paper money
There’s no single currency that is safe from the wrath of inflation. Whether you invest in euros, yen or Swiss franc, no world currency can act as a guard against inflation as well as precious metals do. Even countries are investing in more tangible assets in order to protect themselves because the world reserve currency which is the dollar is facing serious inflation. That is why gold is a better alternative to paper money because it maintains its value even when the environment is going through an economic downturn.

OR TELEPHONE: 1-855-628-9249

Information About The Page Author

Nathan Tarrant image

Nate Tarrant is a former Owner, Operations Director and Compliance Officer for a finance company who specialized in mortgages, pension and retirement planning, along with life disability and health insurances. After selling the company he moved into business and finance coaching/consulting,working with small business owners as a coach helping them improve their operational and financial strategies.

His work has taken him around the world: He worked with a finance company in the UK, assisting the management team to produce annual growth of 138 per cent, achieve fifth place in the 2004 Financial Times Inner City 100 Business Index, become the 22nd fastest growing company in the UK on the Sunday Times Virgin Atlantic Fast Track 100 and 19th rank in the Real Business magazine Hot 100.

In 2008, after the financial crash, he moved to Geneva Switzerland to advise directors of Fortune 500 companies and delegates of the UN on their financial investments and wealth management.

Nate now spends his time coaching and advising business owners on marketing and growth strategies, including financial management and planning.

Page last updated 05/10/2016