Gold assets or gold IRA invaluable if Romney wins U.S. elections
September 5, 2012 64 view(s)
Those who hold gold assets are typically holding them as a way to stabilize their portfolio against unexpected economic downturns that can wipe out the value of stocks in a matter of weeks, days or even hours. For many, the purpose of having a gold IRA is to achieve long-term stability by turning to something other than the often volatile dollar. This, Republicans say, is a thought process they understand. In 2012, GOP presidential candidate Mitt Romney has hinted that a return to the gold standard is something he is interested in pursuing, a fact which is music to the ears of those investing in gold today. If this were to happen it would strengthen their position and quite possibly lead to a sharp uptick in gold's value at the same time. There are many reasons behind the philosophy of returning to a gold standard, but perhaps the biggest one is a fear that if this is not done, inflation could rise at an incredible rate and cause consumers to suffer on a broad scale. A recent article by David J. Lynch of Bloomberg noted, "Since the September 2008 onset of the financial crisis, the dollar has lost 1.1 percent of its value on a trade-weighted basis." Unlike the dollar, gold assets have a way of remaining high in value even during the economic chaos, something that can typically be said for silver. Both of these metals have a strong history of being used as ways to store and protect wealth during uncertain times. This is why a gold IRA is a popular choice among those who worry that when they retire, the currency's value will be lower than they expected. By investing in gold, no matter which way an investor chooses to go about it, fears can be allayed due to the scarcity of the yellow metal and the unrelenting demand for it worldwide thanks to numerous industries to which it is important. Ron Paul has been cited as being behind the push to return to a gold standard, a fact not surprising considering that he was a member of former President Ronald Reagan's commission to study the possibility of returning to the gold standard. While that commission did not decide 1982 was the right time to take that step, Paul is noted for having openly disagreed with the commission's finding. He remains today a staunch advocate for gold as the basis of the U.S. currency and strongly opposed to the current fiat currency printed and controlled by the private banking entity known as the Federal Reserve. Noting that a large portion of Americans continues to blame the Fed for the current economy, Lynch wrote, "For many, their inflation fears stem from a belief that Fed failures helped cause the financial crisis and that its policies since then have risked greater economic distress." Investors look to gold to protect themselves against bad moves by the Fed, policymakers and even stock traders. They know that hard assets like gold, silver, and platinum are a reliable way to protect the money they have worked hard to earn. If Romney does win, they stand to gain, but even if he does not, their assets will continue to be a strong part of their portfolios stability no matter what the economy does.