When I started in business some time ago I was told the following story which has carried me through my business and personal life and has helped me make some very wise investments to increase my personal wealth and not have to worry too much about my future retirement.
I attended a business related training course where the presenter opened up with a real world example about gold mining. Many years ago when gold was first discovered in a new area 100′s or even 1000′s of people would flock there hoping to find their own gold ingot or similar precious metal.
These people all had one thing in common, they needed tools, equipment and food so some smart cookies, instead of following the hoards into the mines set up shop selling shovels, rope, and lanterns for example.
Now while these smart folks may not have found unbeliveable wealth they did do very, very well for more than a couple of years infact and well enough to live for many more years without lifting a finger.
As a businessman I can fully respect what these folks did all those years back and I’d like to think that I’d have done the same and built up a nice nest egg or retirement fund. Anyway I’m glad that nowadays we don’t have to actually worry about mining for gold ourselves regardless of how we invest in it to grow our own personal wealth.
Why A Gold IRA Investment?
Put simply “what will you do to survive?
For some time now Economists have believed that the US dollar is destined to fail in the long term due to the falling price of the dollar. Compare this to the increasing price of gold and there is no comparison. Gold has soared in price and continues to be the principle reason why countries such as China continue to invest huge sums into it.
Obviously, I hope you can see why many smart cookies who thinking about their future and safeguarding their financial assets created IRA’s in the first place. In case you are not too familar with IRA’s such as the traditional IRA, Roth IRA, SEP and importantly self directed IRA’s. It is here in a self directed Gold IRA that you can choose to move your IRA to gold or other precious metals.
For now all you need to know is that an IRA, individual retirement account, is a special savings account for individuals to invest their money into for retirement which come with special tax exemption rules designed to encourage and reward savings.
Can you imagine relying on state handouts when in say 15 years plus time a loaf of bread alone may cost $10, *wow*. I, like you, have worked hard in my professional time and would hope that the interest on my wise investments alone are more than enough to buy many loaves of bread.
The US National Debt is absolutely shocking, take a look at this real time US debt tracker.
More Reasons To Invest in Gold
- Weakening US Dollar vs Gold Security – due to a number reasons the US dollar continues to weaken against other major currencies amd will continue for the foreseeable future. Gold however, after reaching the giddy height of $1000 per ounce in 2008 has continued to soar to its current price of nearly $1900 per ounce.
- Inflation – gold is a safe commodity and the price of gold rises when the cost of living does too therefore hedgeing against any negative impact on current standards of living. During the years when US inflation was at its worst (highest) the rate of return you could expect on industrial average savings was c.-12% compared to a return of c.130% on gold.
- Wealth Preservation – many folks see gold investments as a means to preserving their wealth and even passing it on to the next generation. Unlike other assets, currencies included, gold more than holds its value (smart cookies therefore don’t need to keep digging to maintain current standards or wealth projections).