Why Gold?

Why gold? Why are so many people talking about gold investing right now? It’s quite simple:¬†throughout¬†history, gold has been the only type of investment that withstood the test of time. Gold prices kept going up through various economic and political meltdowns, unlike real estate, paper currency and stocks.

Gold supplies are limited. Gold is not a commodity that can be produced. Countries like India and China are constantly buying gold, because it has been part of their culture for thousands of years. Gold demand has been constantly increasing worldwide, but the supplies have stayed the same. There is only a limited amount of gold that can be extracted at any given time.

gold chart

The above chart doesn’t lie. The prices have been constantly going up since 2006. If you look at a 10 or even 50 year chart, the trend looks very similar. Prices sometimes dip, but only slightly. The trend is always upwards.

Why through an IRA account?

There are several ways to invest in gold. You can buy gold coins. You can purchase gold bars. You can buy gold EFTs. However, the safest way seems to be investing through a 401k or IRA account. Why? Because it means you do not have to carry the gold with you and be responsible for storing it. Holding large amounts of gold in your possession in never a good idea. It also makes it more difficult to sell back the gold.