Many people have been worrying about their gold investments since the price dropped to below $1,400 per ounce yesterday. Many are questioning whether gold is still a safe investment. The short answer is: yes, gold is still one of the best types of investment in today’s troubled economic landscape.
Why You Should Still Consider Investing in Gold
Unlike many other investment options, gold has real life uses. It is being used in the electronics industry due to its superior conductivity. It is being used in dentistry to create gold fillings, alloys and bridges. It is being used in the computer hardware industry to mount memory chips and microprocessors to motherboards. It is being used in many other industries such as aerospace, architecture, medical equipment and many more.
Analysts Are Betting on the Rebound
According to many financial analysts, the price of gold is bound to increase in the next few days. Unlike other types of investments, the gold value can never drop down to zero. Keep that in mind. Stocks, bonds, paper currency, bitcoins and virtually every other type of investment can go down to ZERO, not gold. Why? Simply because gold is a material that is needed by many industries and that is highly difficult to extract.
The various uses of gold
gold is used in electronics to mount chips, microprocessors and to create high quality connectors and wires. Gold is used in the medical industry as a treatment for various medical conditions. Gold is used in dentistry to create gold bridges, alloys, fillings and braces. Gold is used in architecture and glass-making and is a big part of many modern skyscrapers. Gold is used in many other items that people don’t know about. Because of that, the precious metal will always be a valuable investment. Learn more about the various uses of gold in this article.
Considering owning gold through your IRA
Investing in gold through your IRA retirement account is certainly one of the best ways to own gold. All you have to do is set up separate self-directed IRA which you will use for precious metals investing. A firm like Regal Assets can help you through every step of the process. They are based in California and have helped thousands of American investors set up gold-backed IRAs.
How much gold should I buy as part of my IRA?
This is something you will need to discuss with your financial advisor, but generally we recommend 5% to 20% of your total portfolio should be dedicated to precious metals. 5% if you want to be on the conservative side, 20% or more if you’re willing to take on more risk. Whatever percentage you choose, make sure that you feel comfortable with it and that you have done your thorough research prior to committing to it.