One of the goals in life aside from being happy is to have enough money later on in life to be able to survive and maintain a certain lifestyle without having to work.
That is called retirement. It is a time in life where you can do what you want all day without having to maintain a specific job to earn you a living. You can travel, play sports, create and play music, paint, or help those who are in need. Whatever you want to do, you can do.
There are many ways to save up for retirement. One of the most common ways is through a pension. A pension can be provided by a private institution or the government. It is where you pay a monthly fee to the institution so that when you retire at the age of retirement, you can receive a certain amount monthly for you to be able to maintain a lifestyle without working.
Retirement age also differs from country to country. In the United States, the retirement age is 66 years for people born in 1955 and 67 for those born in 1970 onwards. This means that you will receive the benefits of your pension at those ages.
There are other ways to save up for retirement. You can save up money by yourself or invest in different investment schemes aside from investing in stocks, bonds, and mutual funds. Another way is through an IRA or an individual retirement account. This is a private way of making sure you have money when you retire but with some tax benefits depending on the states’ tax laws.
There are many types of IRA available as your money can be invested in many different things nowadays. One of the options that you have is to invest in gold. There are regulations and limits to this type of IRA but investing in gold IRA companies is surely a good idea.
Here are some of the reasons why you should invest in Gold Individual Retirement Account:
Paper Money Can Fail
Paper money is a banknote that serves as a promissory note by the bank that issued it. Nowadays, banknotes are issued by central banks of different governments around the world. For example, the Euro is issued by the central bank of European Union while the U.S dollar is issued by the Federal Reserve.
The problem with a promissory note is that it will depend on the capability of the issuer to pay. If it is known that the issuer has no capability to pay, then the banknote is worthless.
This capability to pay is directly related to a country’s GDP. If a country’s GDP is very poor, then people will not accept the banknote from that country. They will have to find ways to procure other banknotes from other countries to be able to trade.
There are a lot of economic reasons that the value of your paper can fail: inflation, recession, and depression. The value of money is governed by the laws of supply of demand. Yes, countries can indeed print as much money as they want to.
In the past, the amount of money printed, needed to be correspondent to the amount of gold the issuer had in reserve. However, now, money printed needs only to be correspondent with economic strength which is seen in the GDP of a certain country. Yet, there is still a problem with overprinting.
Banknotes still fall under the powers of supply and demand and if you have too many banknotes of a certain currency in the international market, then the value of that banknote depreciates. To be able to maintain a certain value on the banknote, central banks must regulate the amount of legal tender in circulation in the local and international markets.
Gold, on the other hand, is still subject to the laws of supply and demand. Yet, because it is a rare metal and procurement and treatment of this metal is very challenging, its value continues to rise as demand continues to go up. Gold has intrinsic value which paper money does not have.
Central Banks Are Buying Gold
Central banks all over the world are filling their stocks of gold once again. In fear of a possible economic recession and depression, central banks are making sure that their promissory notes are back up by something with intrinsic value.
Because of the manipulation of currencies done by many countries like how China is keeping the value of the Chinese Yuan low despite their economic power and how the United States is printing somewhat an unlimited supply of money through a congressional act, GDP is no longer a good economic indicator.
As with the practices of before, central banks are hoarding gold to protect their banknotes and the countries that they serve from a possible economic turmoil. If one of the major economies fails, the whole world will be affected. It is better to be protected and prepared than to suffer as a consequence of the actions of the greedy.
Gold Increases in Value
This rare metal’s value has been constantly increasing through time. Because of its rarity and because people love it so much, its value keeps rising. People love it as jewelry while technological companies used it in electronics because it is a highly efficient conductor where electricity can pass through it yet it remains free of corrosion.
Because of the high demand in electronics, cell phones, smartphones, laptops, and tablets, the demand for gold to be used in these areas is also increasing. Click here to learn more about the uses of gold.
It is always a good idea to invest in this rare metal and even much better to invest in a gold IRA.
Through this method, the rare metal you are investing in is kept safe by the financial institution so you don’t have to worry about anyone stealing it from you.
You are also given tax cuts with your investment so you gain a lot more in the future when you decide to use your investment during your retirement.