Convert Ira To Gold

Share on LinkedIn
Share on reddit
Share on StumbleUpon

http://www.business-standard.com/article/pf/save-money-for-jewellery-by-investing-in-gold-etfs-113101900667_1.html

I was reading this rather interesting article about why the yellow metal was going to go up. It had the standard facts that many investors already know. But to reiterate them, they are as follows:

  1. India And China account for 60% percent of the world’s gold import demand
  2. Currency volatility forces most countries to hold some of their capital into precious metals as a way to hedge this constant risk.
  3. There’s still a shortage of new gold mines coming online, so demand is still greatly exceeding output. It typically takes 10 years for a new mine to open

One puzzling statement was this:

“Also, remember that buying gold has lately been hurting economy because it is increasing our current account deficit. As an investment it does not improves one’s returns on investments unlike equity or debt market instruments.”

Personally, this is only true if enough capital is moving into precious metals. Since the vast majority of the world’s investment community is still buying private placement memorandums, stocks, bonds, and other types of equities like real estate, I don’t think this statement has much validity. If it were true, we’d be seeing at least 5-digit prices for gold and 4-digits for silver.

If you want to convert your ira to gold, now could be a good time since prices for precious metals are still relatively cheap. Otherwise, you’ll have to buy “paper gold” such as GLD or SLV, which are precious metals equity funds.

Leave a Reply