Gold Retired

  • Buying Guide
  • Learn
    • 401k to Gold IRA Rollover Guide
    • #1 Recommended Gold & Silver IRA Solution!
    • Avoid Gold IRA Scams! | (Learn how)
    • Investing in Gold for Beginners | Basics & Tips
    • Top-5 List of Gold Investment Companies | U.S. 2023
    • What is a Gold IRA?
    • What is a 401k to Gold IRA rollover?
    • What is Numismatic Gold Coins? | BEWARE!
    • Gold IRA Pros and Cons
    • Gold IRA Rules and Regulations | 2022
    • Top-5 Gold & Silver IRA Companies | 2022
    • Top 5 Best Gold Coins – Investors Favorite Picks
  • Reviews
    • Augusta Precious Metals
    • Goldco Precious Metals
    • American Hartford Gold
    • Birch Gold Group
    • Advantage Gold
    • Noble Gold
    • Oxford Gold Group
  • Blog
    • Central Bank Digital Currency in USA – Is it being introduced?
    • Why Gold Hedge Against Inflation | one-eyed man in the kingdom of the blind
    • Where do wealthy people invest their money?
    • Gold in War | Why is it a good idea?
    • What Does the Bible Say About Retirement? | Gold & Silver?
    • How to Invest in Gold? | Different Ways You Can Do It
    • Gold Vs. Silver Investment | What makes most sense to you?
    • How to Protect Your 401k From a Market Crash | 6 Best Tips!
    • Gold IRA Scams! | Learn How to Avoid Them!
    • Roth IRA versus Traditional IRA | What Are The Differences?
    • Is it Worth Investing in Gold? Your Freedom is Under Attack!
    • What is IRA Basis? | Simple Explanation
    • 16 coins to have in a Cryptocurrency IRA | New 21/22 List!
    • What is The 702(j) Retirement Plan? | Not a Smart Idea?
  • Our #1 Recommendation

Is it Worth Investing in Gold Bullion? Read Before Investing

November 25, 2021 by admin Leave a Comment

Is it worth investing in gold bullion?

Is it worth investing in gold bullion? In today’s article, we shall answer this one question that has been bugging most investors in their attempt to diversify their retirement portfolio. My hope is that by reading this article, you shall gain sufficient knowledge to enable you to make an informed decision as to whether to get started with investing in gold bullion or to stay away from any type of precious metal investment. Read on more to discover what you are missing out on, or what you have managed to steer clear from by avoiding gold investments all those years.


P.S.

See Gold Retired’s top-5 List of Gold and Silver IRA Companies


Introduction to investing in gold- Reasons for and against

Investors can gain exposure to gold by purchasing different forms of gold including gold ETFs, gold mining stocks, physical gold (bullion), and gold futures. All those who pick on the various forms of gold have their reasons for doing so.

Some argue that investing in gold is barbaric, and go ahead to quote that it does not hold any monetary value. In the present-day world, paper currency is the preferred type of money. There are also those who argue that gold has intrinsic properties, that make it retain (or increase) its worth throughout the years. Those who have held gold in their portfolios can attest to the fact that it’s one of the most stable assets during economically challenging times.


The United States Bimetallic Standard

Following the advent of gold as a form of money, its importance grew very fast in different continents in the world. At some point, this shiny metal was owned to symbolize wealth amongst different communities in Asia, Europe, Africa, and the Americas.

The United States government continued with this tradition of the use of gold as money, through the establishment of the bimetallic standard as early as 1792. The bimetallic standard stipulated that all monetary units in the U.S. had to be backed by gold or silver. This, in effect, meant that the coins that people used as money represented the precious metals (gold and silver) held at the bank.

Unfortunately, this standard did not stand the test of time. In the 1900s, there were a couple of events that led to gold being excluded from the U.S. monetary system. Below is a timeline of major events that occurred:

  1. 1913

The Federal Reserve was created, and it began issuing promissory notes, which can be viewed as paper money by today’s standards. The promissory notes could be redeemed in gold, on-demand.

  1. 1934

The Gold Reserve Act saw the U.S government gain title to all the gold coins in circulation and halted the minting of new gold coins. This, to a great extent, cultivated the notion amongst U.S. citizens that gold was no longer to be viewed as money.

  1. 1971

The U.S. government gave up on the gold standard. Since then, the U.S. dollar ceased to be backed by gold.


The Role of Gold in the Modern Economy

Even though the U.S government no longer allows for gold to back the U.S. dollar (or any other currency for other matter), this rare and valuable precious metal still has its value in the present-day global economy.

Central banks and other financial organizations such as the International Monetary Fund all have balance sheets that reveal volumes about the importance of gold. The fact that these organizations hold about a fifth of all the above-the-ground gold should show you that gold bullion investments are worth looking into.

Moreover, more central banks (and countries/states) have been adding to their gold reserves, which reflects their concerns about the state of the economy both in the present-day world and in the long-term horizon.


The Weakening U.S. Dollar – Gold as The Solution For All Investors

Generally, gold and the U.S. dollar seem to have a special relationship. The decline of the U.S. dollar, due to some wrong moves by the U.S. government, leads to an increase in gold prices. There are two reasons behind this relationship.

  1. Those who want to purchase gold, such as central banks and other financial institutions, must sell their dollars to complete the transaction. This eventually leads to the decline of the U.S Dollar as more global investors attempt to diversify out of the USD.
  2. The weakening of the US Dollar makes this shiny metal more affordable for investors who are holders of other currencies. This generally leads to the greater demand for gold from the investors who own currencies that have over the years appreciated in value in comparison to the U.S Dollar.

The takeaway here is that investors in the U.S. can only remain in the safe territory by adding gold to their investment portfolio if other global investors are diversifying out of the dollar.


Diversification of Investment Portfolios

As we have already established, gold is a diversifying asset. Historically, investors have added gold to their portfolios as an approach to diversifying them. Today, there are many reasons why you should act with urgency to diversify your investment portfolio, including:

  • Concerns about the fast-rising inflation
  • The declining U.S. dollar
  • Protecting your wealth

If you simply are out to invest in gold bullion to diversify your portfolio, then you will be making the right move. This is because gold is negatively correlated with most of the assets in today’s economy, including paper assets (bonds, stocks, and funds), and real estate. By purchasing gold and holding it in a reliable gold individual retirement account (IRA), you present yourself with the opportunity to diversify your portfolio from the turmoil in the global economy (such as stock market crashes).


Investing in gold bullion is not a dream far away as it seems. Check out the top-recommended gold and silver IRA service providers below, and contact one of them to get started right away.Gold IRA recommendation

See Gold Retired’s Top-5 Recommended Gold and Silver IRA Solutions

OR

See Gold Retired’s Top-5 Recommended Bitcoin IRA Solutions


That will be all for this post in which we have addressed the question “ Is it worth investing in gold bullion” I hope that I answered this question well and that you now know what you stand to gain by putting in some money into a gold IRA. If you need some guidance with getting started with gold bullion investments, do let me know so that I can help you by pointing you in the right direction.

I wish you well,

Eric, Investor and Team Member at Gold Retired.

Filed Under: Gold, Retirement

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Trending from blog

  • Central Bank Digital Currency in USA – Is it being introduced?
  • How to Protect Your 401k From a Market Crash | Some Tips!
  • What the Bible Say About Retirement? | Gold & Silver IRAs?
  • Where do wealthy people invest their money?
  • How To Write a Retirement Speech | 6 Tips To Get You Started

Important pages

  • 401k to Gold IRA Rollover Guide | 5-Steps
  • Our #1 Recommended Gold & Silver IRA Solution
  • Avoid Gold Scams! | (7-Minute Read)
  • Top-5 Gold IRA Companies 2023
  • 2023 Buying Guide (gold & silver for any budget)
  • How To Invest In Bitcoin – From Your Retirement Account
  • How to avoid Bitcoin Scams
  • 401k to Gold IRA Rollover Guide | 5-Steps
  • Our #1 Recommended Gold & Silver IRA Solution
  • Avoid Gold Scams! | (7-Minute Read)
  • Top-5 Gold IRA Companies 2023
  • 2023 Buying Guide (gold & silver for any budget)
  • How To Invest In Bitcoin – From Your Retirement Account
  • How to avoid Bitcoin Scams

Useful Links

  • About Us
  • Contact Us
  • Affiliate Disclaimer
  • Privacy Policy

Gold Retired © 2023 | All Rights Are Reserved

  • See #1 Recommended Gold & Silver Firm