If you are looking for financial security, you should invest in gold. This is because gold is a very safe commodity for shrewd investors. Below is an overview of the history of investing in gold.
Gold investments through the ages
The first people to invest in gold were the ancient Egyptians. Around 3500 BC, Egyptians were already using gold for ornaments and statues. Gold was also widely used as money in Egypt around this time. Gold coins were used as a medium of exchange in ancient China. These coins were called Ying Yuan and were in existence for about 800 years during the Zhou Dynasty. At the height of its power in 120 AD, the Roman Empire used gold bullion as a medium of exchange. This currency was one of the abiding contributions of the Roman Empire to civilization. The modern world operated on the Gold Standard from the mid-1800s to 1914. This period was a time of peace, prosperity and employment. The boom experienced during these years can be partly attributed to the adoption of gold as a strong and stable money system.
Gold investments in the present era
Since the year 2000, gold has remained the precious metal of choice for shrewd investors. Financial crises and the volatility of the stock market have made gold one of the safest investment on earth. Gold prices have continued to rise consistently and many investors have turned to this precious metal because it provides a safe haven in cases of recession, depression and a stock market crash.
Why gold is so valuable
Gold is valuable because it is relatively scarce. Gold is also valuable because it has many uses. This precious metal is used in making jewelry. It is an excellent conductor of electricity and this is why it is used in electronic devices like computers. It is also used for cell phones and space craft. Gold bullion is recognized as a store of value and this is why many nations and central banks use gold to back up their currencies.
Investing in gold
You can invest in this precious metal in different ways. You can buy gold coins and keep them because the value of these coins will rise with time. You can invest in gold bars and you can also buy jewelry made of gold. You can also buy stocks in gold mining firms or buy gold ore. These are very smart investment moves but the most popular gold investment in gold IRA.
Understanding gold IRA
A gold IRA is an Individual Retirement Account where physical gold or other precious metals are held for the benefit of the account owner. This is a regulated account and it is a very safe investment because you are not investing in stocks and bonds but in gold bars and gold coins. Some of the advantages of the gold IRA account are portfolio diversification, and long-term security. Another advantage of this special gold investment is that it serves as a hedge against inflation.
Choosing the right company
Gold IRA is an excellent investment move but this does not mean you should entrust your cash to just any company that offers this service. You need to do a bit of research so that you will find the firm that is just right for you. Below are some qualities to look out for when you go shopping for a gold IRA firm.
Look for accompany that has a track record of achievement and invest your money with them. Ensure you get objective views from present and former customers because these are the people who will give you authentic information.
In every business relationship, transparency is vital. Do not entrust your money to a company that is reluctant to give you vital information upfront. It is in your interest to deal with people that will answer all your questions and explain things clearly to you.
You should deal with a company that has qualified and experienced staff. You should also ensure that the firm you have chosen is licensed and certified by the right regulatory agencies. In addition, you should verify that your investments have insurance cover in case the unexpected happens.
When it comes to gold IRA and gold IRA roll over, one size does not fit all. Discuss your needs with experts at the firm you have chosen and be sure they can provide the right service before you take the plunge. If the experts offer you a program that is radically different from what you have in mind, you should turn it down politely but firmly.
Gold is not subject to a market crash
Your gold IRA is your passport to financial security. Gold prices have been rising steadily for some years now and this trend is likely to continue. If you invest in gold now, you will enjoy great benefits in future. One of the best things about investing in gold is that it is more stable than stocks and bonds. Stocks have boom times and down times and these things are not always easy to predict. Invest in stocks at the wrong time and you may lose a substantial part of your holdings. You might even lose all your capital if you get caught on the wrong side of a stock market crash. Over the years, investors have lost millions and possibly billions of dollars in unexpected stock market downturns. The American stock market crashed in October 1929. Investors also lost big money during the recession of 1937-1938. The Brazilian market crash of July 1971 was a huge blow to investors in Brazil and other parts of Latin America. Global markets also tumbled in June 2016 after the United Kingdom voted to leave the European Union.
Why gold investment is safe
Unlike the stock market, a gold market crash is not ever likely to happen. In fact, gold prices appreciate during periods of economic crises. Gold prices also rise in times of economic prosperity and stability. This makes investing in gold a win-win situation for the smart investor. Invest in gold today and you will be taking a huge step to financial security.