Why Precious Metals?
Securing your retirement demands a comprehensive strategy in an ever-evolving financial landscape.
Our Retirement Services Division advocates integrating precious metals into your investment portfolio for many reasons.
Preserving your buying power through gold
Storing assets in gold is often considered a hedge against inflation because gold tends to retain its value over time, even when the purchasing power of paper currency declines. Let’s illustrate this with an example:
Year 2019
Gold price is
$1,300 per ounce
A basket of goods and services is $500
$13,000 in cash
will buy you
26 baskets of goods
(13,000/500=26)
Year 2024 Inflation rate is 3% per year
Gold price is
$1,900 per ounce
A basket of goods and services is $579.50
$19,000 in cash
will buy you
32.8 baskets of goods
(19,000/579.50=32.8)
Don't Keep In Cash
- Instead of keeping your $13,000 in cash, you decide to invest that money into gold.
- At a price of $1,300 per ounce, you can purchase 10 ounces of gold (13,000/1,300)
Store in Gold
- By storing your assets in gold, you protected your wealth from inflation.
- The $13,000 you invested in gold in 2019 can now allow you to buy nearly 5% more in goods and services in 2024.
despite the increase in goods and services due to inflation, the value of your gold investment grew more significantly, effectively retaining and enhancing your purchasing power over the 5-year period.
Understanding inflation trends: SafeGuarding Your Wealth
Inflation, the gradual rise in prices for goods and services over time, erodes the purchasing power of money, making it a significant concern for savers and investors. When inflation trends upward, your dollar buys less than it did before, leading to higher costs for everyday necessities and a diminished value of cash-based savings. Inflation is often influenced by various factors, including increased demand for products, supply chain disruptions, and expansive monetary policies such as printing more money or lowering interest rates.
Understanding inflation trends is crucial for protecting your wealth. When inflation spikes, traditional investments like stocks and bonds can suffer as their real returns are diminished by rising prices. In such times, investors often turn to assets that historically perform well in inflationary environments, such as precious metals. Gold and silver, in particular, have long been viewed as a hedge against inflation because their value tends to rise when fiat currencies lose their purchasing power.
Precious metals offer a stable store of value during inflationary periods because they are tangible assets that aren't subject to the same vulnerabilities as paper currencies. As inflation drives down the value of the dollar, demand for metals like gold and silver increases, pushing their prices upward. This makes them an attractive option for safeguarding wealth, especially during periods of economic uncertainty. By including precious metals in your investment portfolio, you create a buffer against inflation, helping to preserve the real value of your wealth and providing peace of mind in uncertain times.
Securing Your Retirement Portfolio with Precious Metals
Securing your retirement nest egg in today's unpredictable financial landscape requires a strategic approach. While standard practice, investing solely in traditional avenues like stocks and bonds can leave your savings vulnerable to market volatility and economic uncertainties.
Diversification emerges as a fundamental strategy, and integrating precious metals into your retirement portfolio protects against the inherent risks of such traditional investments.
Physical assets like gold, silver, and other precious metals serve as a counterbalance to the fluctuations of the stock market. Unlike stocks and bonds, whose values can be swiftly affected by market swings and inflation, the intrinsic value of precious metals tends to hold steady, offering a protective hedge against economic downturns and currency devaluation.
This security becomes especially critical in times of high inflation or market turbulence. History is rife with instances where market corrections have wiped out significant portions of retirement savings in days, leaving individuals reeling for years to recover their financial footing.
By diversifying your retirement portfolio with precious metals, you defend against such uncertainties.
These tangible assets possess inherent value and historically exhibit resilience amid economic upheavals.
Their ability to preserve wealth over the long term makes them essential in safeguarding your retirement savings from the pitfalls of a volatile market. Recognizing the importance of balance and resilience in your retirement assets is vital.
Invest wisely for a Secure Future
Transitioning a portion or entirety of your retirement account to a precious metals IRA offers a logical strategy. Aligning your investment approach with changes in objectives, life stage, or market conditions ensures a buoyant and secure retirement plan.
Allocating a portion of your retirement funds to physical precious metals empowers you to create a diversified and resilient portfolio that stands strong against the unpredictable tides of the financial world, providing a stable foundation for your retirement years.
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