Gain a deeper understanding of the value behind precious metals and how to purchase them.
If you're interested in adding physical gold or silver to your investment portfolio, this article can help you gain a deeper understanding of the value behind precious metals and how to purchase them.
Throughout this article, we’ll explain the history of gold’s value and why it has long been a proven and trusted safe haven asset for hundreds of years, especially during economic hardships.
With record-high inflation, ongoing Fed rate hikes, and the debt ceiling crisis, more investors are becoming interested in using gold to diversify their portfolios.
Gold has been used as a form of currency for hundreds of years. However, unlike paper currency or coins, it has maintained its value throughout those years.
When the value of the U.S. dollar drops, the price of gold tends to rise. According to Investopedia, the price of gold nearly tripled from 1998-2008, rising to its $1,000 per ounce milestone. The metal then nearly doubled from 2008-2012, hitting above $2,000.
Furthermore, while other investments struggle to retain value during economic downturns, gold remains stable.
Historically, the yellow metal has demonstrated a low correlation with other asset classes. This means that when other investments in your portfolio drop, gold could act as a counterbalance to help mitigate losses.
Gold is seen as an excellent inflation hedge. Why? Well, as our cost of living rises, so does the price of gold.
When faced with economic turmoil, central banks may implement quantitative easing and fiscal stimulus to boost the economy. Those policies could lead to inflation and the devaluation of the dollar through money printing.
Paper currencies, like the U.S. dollar, can be printed on demand, which weakens their value due to the sheer volume of them in circulation.
However, gold is scarce. It can be printed. There is a limited supply of it, which drives its demand and pricing.
Furthermore, since gold is seen as a good store of value, investors may flock to gold when they feel their fiat currency is losing value.
Gold is often a popular asset during times of geopolitical uncertainty because it can hold its value.
The yellow metal is often called a “crisis commodity” because investors see it as a safe haven when world tensions rise.
The bullion also rises when confidence in the U.S. government is low, as we’ve seen during the COVID pandemic.
One of the reasons gold is a popular asset is because it’s tangible. It can be held, seen, and stored.
It’s also a liquid asset that can be turned into cash quickly.
So, you’re interested in adding precious metals to your portfolio, but how exactly do you buy gold?
At American Coin Co., we are committed to helping hard-working Americans protect their retirement savings by converting a portion of a conventional IRA into a Self-Directed IRA that can legally hold precious metals.
This type of IRA could help protect your hard-earned wealth from inflation and economic volatility.
American Coin Co. offers several options for your precious metals purchase, including our Depository IRA and cash transactions.
With our Depository IRA, we’ll help you convert a percentage of your savings into a Self-Directed IRA that can legally hold precious metals tax and penalty-free (IRS CODE 408(M)(3)). Your Depository IRA is administered by industry-leading custodians who oversee all of your asset purchases and liquidations. American Coin Co. can ensure that your metals are being stored in a top-tier depository with state-of-the-art security. You’ll have the option to select your preferred location, and your metals will be 100% insured by Lloyd’s of London for up to $1 billion.
This article may contain information from third-party sources that are not affiliated with American Coin Co., American Coin Co., is not responsible for the content, accuracy, or reliability of any information or statements contained in this article that originate from third-party sources. The information contained in this article is provided for informational purposes only and is not intended to constitute legal, financial, tax, investment or professional advice. Any views or opinions expressed in this article are those of the third-party source and do not necessarily reflect the views or opinions of American Coin Co. The inclusion of any links or references to third-party websites or products does not imply endorsement by American Coin Co.
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