Making decisions with regard to how to invest for retirement can be, though. While the stock market seems like a good place to be now, there are several dangers that could spark an investor sell-off. If this was to happen, gold could act as a great hedge. Knowing this, several people are starting to ask the question “Should I consider a gold IRA?” Today, we’ll take a look at why the question is being asked, how a gold IRA can help protect your retirement investments, and whether or not now is a good time to get one. So, let’s get right to it.
Why Are People Looking At Gold When The Stock Market Is Booming?
While it may seem like the stock market is a great place to be right now, there are several factors that make me incredibly nervous about the ability to realize long-term gains if stocks are purchased now. Here’s why…
Oil Prices – Throughout the past several months, oil prices have been dropping dramatically. As a result, today’s oil prices are making it hard for shale production companies in the United States, Canada, and Brazil to realize profits. Unfortunately, many of them may have to close their doors; a move that would result in an unemployment spike around the world.
Economic Conditions – While the economy seems great here in the United States, it’s important to remember that we are highly dependent on the countries we trade with. Unfortunately, economic conditions in the eurozone don’t seem so great right now. As a matter of fact, the multi-country currency is walking a tight rope; trying to escape the possibility of a technical recession.
Geopolitical Conditions – We all know that in times of war, financial markets don’t do well. I’ve been watching several geopolitical matters unfold. While they may not be getting as much publicity today as they did a couple of months ago, Russia and Ukraine are still at odds and terrorist organizations seem to be more active than ever.
How Gold Can Protect Your Retirement
When the stock market starts to realize losses and investors start to sell their shares, they look for somewhere else to put their money; known as a safe haven investment. One of the most common types of safe haven investments is gold. As demand for gold rises and more investors buy the precious metal, supply dwindles. So, when the market realizes losses, the laws of supply and demand and history both tell us that the value of gold rises. The money made from the rise in the value of gold could offset losses in the stock market.
Is Now A Good Time? Final Thoughts
The best answer I can give to this question is that it’s never a bad time to consider protecting your investments. Because everyone has unique goals, I can’t give a one-size-fits-all answer to the question of when a good time might be. It may be a good idea to speak with your financial advisor about your options with regard to protecting your retirement.