Safeguarding Your Retirement: The Importance of Owning Gold During a Time of Economic Volatility

As you approach retirement age and start retirement planning, it is important to safeguard your savings. This is especially crucial during times of uncertain economic conditions and stock market turbulence. Diversifying your portfolio with tangible assets, such as gold, can help provide financial security and retirement stability. 

Gold has long been considered the standard for long-term investments because it reliably holds its value, even during recessions. Exploring opportunities in the gold market can help you balance your assets. At Noble Gold Investments, our Gold Individual Retirement Account (IRA) helps those planning for retirement protect their nest egg and reach their goals. Here, we discuss why owning gold is beneficial during economic instability and how our Gold IRA can help protect your money. 

What Is a Gold IRA?

A gold IRA is a self-directed retirement account that allows you to purchase gold and other precious metals, such as silver, palladium, and platinum. With a gold IRA, you can buy physical gold coins, bars, and bullion. By diversifying your investment portfolio with precious metals, you minimize the risk of your investment underperforming during high inflation or market fluctuation.

There are three types of gold IRAs, including:

• Traditional Gold IRAs: This is the most common type of gold IRA and is like a traditional IRA. You fund this account with pretax dollars and pay taxes after you retire and start withdrawing money. The yearly contribution limit for people under 50 is $6,000.
• Roth IRAs: These accounts receive post-tax contributions, allowing you to enjoy tax-free withdrawals during retirement. Like traditional Gold IRAs, Roth IRAs have a yearly contribution limit of $6,000.
• SEP IRAs: This IRA is a retirement account for self-employed people or business owners. Like traditional Gold IRAs, you pay taxes on funds when you withdraw them. This type of account has strict contribution limits. You can set aside $61,000 or 25%, depending on which is less.

How Does a Gold IRA Work?

To set up a gold IRA, you need to work with a reputable company specializing in gold IRAs, such as Noble Gold Investments. Gold IRAs have complex regulations and specific documentation requirements, so choosing the right investment firm is crucial. At Noble Gold Investments, we make setting up and managing a Gold IRA simple.

We help you keep your tax and transaction paperwork organized and ensure all IRS requirements are met, such as proper gold storage. With a gold IRA, you cannot store your gold at home. Instead, you must store any precious metals you buy at an IRS-approved storage facility. We help you find a government-compliant facility that is also safe and secure, as well as help to arrange the transfer of your gold once you open your account with us.

We’ll also discuss with you the two ways you can fund your account, including:

• Existing retirement account: You can roll over an existing IRA or 401(k). This is common for people who already have a retirement account and don’t want to pay early withdrawal fees.
• Bank transfer: If you don’t have an existing retirement account, you can transfer cash from your bank account via ACH. This cash contribution offsets your taxable yearly income up to the IRS limits.

Benefits of Owning Gold

Once you set up your account, you can start investing in gold and other precious metals. We offer a variety of IRS-approved bullion, bars, and coins you can buy, such as gold bars, American Gold Eagle coins, and American Buffalo.

Owning gold offers several benefits for individuals, especially if you’re nearing retirement age. These benefits include:

Gold Holds Its Value

Unlike coins, paper currency, and other assets, gold prices have remained stable. This is also true during economic crises. Many investors and collectors see gold and precious metals as a way to pass on their wealth, similar to real estate. 

Because gold retains its purchasing power, banks often keep large gold reserves in their vaults. These reserves help secure and stabilize fiat currency during economic downturns and help balance shifting geopolitical tensions. 

Geopolitical Protection

As mentioned, gold helps balance shifting political tensions globally. Gold’s value often rises during times of tension or conflict, such as tariffs and pandemics. This increase in value occurs because of the following:

• Independence: Gold is not tied to or backed by any specific government or political system. Unlike fiat currencies, this independence makes gold less vulnerable to the effects of international conflicts or political decisions. 
• Recognition: Gold is globally recognized and valued. It is a reliable store of value, regardless of boundaries or alliances. 
• Resilience: During geopolitical conflicts, supply chains can be disrupted. However, gold’s compact size and high value-to-weight ratio make it easy to trade and transport. 

Hedge Against Inflation

Inflation affects the value of money. When inflation is high and interest rates rise, money’s value decreases, which affects your investments and savings. However, during inflation, the value of gold often increases. This increase is due to investors shifting assets around to recoup their losses.

During times of economic uncertainty, investors often move their assets into precious metals. This shift increases the market demand for precious metals, which raises their intrinsic value.

Gold Is Always in Demand

The California Gold Rush of 1849 illustrates the powerful hold gold has on people. Everybody wants gold, not just investors, during market volatility. According to the United States Geological Survey, approximately 244,000 metric tons of gold have been discovered to date. 

Most of the world’s gold supply remains unmined or stored in depositories around the globe. The remaining gold is used to create everyday products. Gold is often used in various ways in the technology, dentistry, and jewelry industries, such as:

• Electronics: Gold conducts electricity and is resistant to corrosion, making it useful for circuit boards, connectors, and other components.
• Jewelry: The luster of gold and its durability make it a popular choice for bracelets, rings, and earrings.
• Dentistry: Gold is commonly used in dental crowns, fillings, and other restoration work because of its durability and inert nature, which reduces the risk of allergic reactions.
• Aerospace: Gold is resistant to heat and can reflect infrared radiation. Aerospace engineers often use the precious metal in spacecraft coatings, helmets, and satellites.

The global supply of accessible gold only increases by about 1% a year. This supply is not enough to meet the demand, which increases its value.

Gold Provides Easy Access to Liquidity

Gold is always in high demand, which means there’s always someone willing to buy or trade for it. In fact, there are entire businesses devoted to buying gold for cash. When people face an unexpected expense or need fast cash, they often visit pawn shops to sell their gold jewelry or coins.

Gold is a highly liquid asset, which means you can easily convert it into cash. By leveraging the liquidity of gold effectively, you can ease future or current financial burdens and reduce the overall risk of investing.

Portfolio Diversification

Professional investors understand the importance of a diversified portfolio. This allocation prevents you from putting your entire retirement into a single stock or asset. If you don’t diversify, you risk the value of your portfolio dropping if the stock market drops.

Allocating your investments across various asset classes helps mitigate market conditions, leading to more stable returns. Gold is a popular safe-haven asset and a sound investment strategy due to its security, stability, and demand. If the stock market crashes or fluctuates, gold helps ensure that some of your investment is safeguarded.

You’re in Charge

As a self-directed account, a Gold IRA allows you to make all the decisions. In addition to gold, you can opt to invest in a variety of other precious metals and products. Other popular precious metal options are silver, palladium, and platinum.

You can also invest in a gold-related paper option, such as an exchange-traded fund (ETF). An ETF is another low-cost, low-risk investment that helps diversify your portfolio without having to directly purchase or store gold bullion.

Safeguard Your Retirement with Noble Gold Investments

The United States seems poised to enter another recession, so now is the best time to start investing and purchasing gold. Being ready before a financial crisis helps ensure your retirement savings don’t depreciate and gives you peace of mind.

Gold is one of the safest investments for retirement because it holds its value, is easy to access, and protects against currency devaluation. Noble Gold Investments is here to help you diversify and safeguard your retirement portfolio. With more than 20 years of combined experience buying gold and silver, our financial advisors understand how to protect your financial future.

We also offer the best buyback program and have no hidden fees. If you buy gold from us, we’ll buy it back with no questions asked or haggling. Don’t let market downturns stop you from achieving your retirement and financial goals. Contact us today to learn more about our gold IRA and gold investment options.