Build Your Wealth With Gold Investing

Recent events in the global economic market have made investing more confusing and riskier than ever before. Once upon a time, putting money into a company’s 401k plan, buying real estate or investing in the stock market were bankable investments that people made great dividends on. In today’s world, those investments are not the tried and true standbys they once were and people who rely on them for their investment strategies are coming up short when it is time to cash them in.

Company 401k plans have taken huge hits and most plans have plummeted in value over the last few years. Tied to stocks of ill performing companies or companies embroiled in legal problems, many employer backed plans simply do not have enough value to meet the investment needs of most people. Whether for retirement, funding college educations or buying a new home, 401k plans are failing investors and losing more value than ever before.

investing in gold

Real estate is more volatile than ever. Finance news has reported repeatedly on the housing market crisis. Many people who invested in properties before 2007 were able to sell their properties for a profit. However, buyers from 2008 and beyond are finding it very difficult to sell their properties at a profit and many are underwater on their mortgages, meaning they owe more than the property is now worth. Home mortgages are harder than ever to qualify for and many lenders are tightening the restrictions so much that home ownership is simply out of reach for most people, so buyers are scarce. Dishonest lending and appraising practices have crippled the once thriving housing market and it could take several years before the market levels out again. Once a solid investment strategy, buying real estate is no longer a clear cut way to increase your net worth.

With the global nature of the stock market, stocks are riskier than ever before. Political turmoil, natural disasters, wars and other unpredictable factors can dramatically effect the stock market. Stocks can gain and loose value in a matter of minutes and do not make a reliable investment strategy.

In light of the unreliable nature of these commodities, smart investors are looking for safer, more secure ways to invest their money and build their wealth. One of the easiest ways is to invest your money in the metals market. Metals such as gold, silver and platinum are giving investors greater returns than traditional commodities and are tangible assets that can be cashed in when you need to liquidate.

gold prices increasing

Owning gold bullion, bars or coins is a smart and stable way to invest your money. For the last several years, finance news has been full of reports on the increase in value and the rising price of gold. In demand and marketable in every global marketplace, you can buy and sell gold with Regal Assets, from anywhere in the world. The global appeal of gold allows you to shop and sell at the best possible price, not merely what your local market bears.

Additionally, for investors in the United States, there can be some tax breaks for investing in metals. Some gold backed IRA plans and select gold coins are eligible for tax deductions when purchased as part of a retirement investing strategy. With a gold backed IRA, the value of your IRA is backed by gold rather than the unpredictable stocks, paper money and other intangible assets most 401k plans are reliant upon for their value. Speak with your financial planner to see how investing in gold and metals commodities can help you save for the future while saving on taxes today.

gold piggy bank

Recent economic events and trends have clearly shown that today’s investors need to be savvy, informed and to fully scrutinize the performance, worth and value of the commodities they buy and sell. While nothing can ever be certain in economics, there are some commodities that perennially outperform their counterparts and precious metals consistently fall within the outperforming category of investments.

Building your wealth and creating an investing strategy that will help you retire, fund an education or fulfill other goals will not happen by chance. It takes dedication, determination and planning an investing strategy that will withstand the ebbs and flows of the market. Gold and precious metals can withstand the changes in marketplaces and give you a great return on your investment. If you are interested in putting your investment money into the metals market, talk with your financial adviser and request information from online gold and metals brokers to see how quick, easy and profitable metals commodities can be.

Investing In Precious Metals

Gold and silver are considered commodities. Therefore, they have an intrinsic value. Only so much gold and silver exist in this world, and there is no way to manufacture more of it once it has all been mined.

Prices depend on various influences, and that can make investing in these metals somewhat complicated. If a particular mine is located in a country that is unstable, the prices can be affected. Speculators in the stock market also affect prices in the way they either invest or sell off stocks. If an investor’s confidence in a certain commodity declines, oftentimes that investor will sell some of those particular assets. However, investors also have a tendency to buy precious metals when other assets become less desirable, and when inflation hits the economy.

Oddly, situations which often raise the price of a metal can eventually lead to a price drop in that same material. An example of this would be inflation triggering demand, along with an expected increase in price. But this very occurrence could actually cause a temporary drop in price as investors sell assets.

The factor which has the most profound effect on the price of these commodities is speculation. Artificial waves of demand are often created by buying trends, which causes investors to see the increase in buying. These investors quickly buy the commodities, hoping to cash in on the increasing price. But later, when other speculators decide to sell these items off and receive their profit, it causes the little bubble which was created to burst. This creates major volatility in these types of assets. Something investors should keep in mind, however, is that commodities usually increase steadily, even if it takes a long time. So, with that in mind, it is generally better to hold on to those investments rather than follow a buy-sell-buy-sell strategy according to what the market looks like that particular day.

Investing in precious metals can still be a good idea, despite the volatility in the market at times. Silver has a tendency to fluctuate more wildly than gold. The simplest explanation for this difference is that gold is still considered a currency, even though the United States is no longer on ‘the gold standard’ and has not been for quite some time. Silver, however, does not really hold that distinction of being considered a currency. Also, the market for the former is much larger than the market for the latter. Even with these differences, the price of the precious metals seem to move up and down in a very similar pattern to one another.

Many people today are investing in these metal commodities as a guard against the fear of very high inflation in our U.S. economy. Yes, price of metals does fluctuate–but the value of the U.S. Dollar can be a much scarier prospect considering that it is merely paper and has no intrinsic value in and of itself. If our currency were to suddenly ‘crash’ as many people fear it soon will, it would be a replay of the Great Depression. The Dollar would be basically worthless. This makes investing in metals with actual value even more attractive.

Consider this: these metals can be trusted to hold their value because there is basically a finite amount of them in the world. It is a very expensive process to ‘create’ more because mining is not easy or safe. Conversely, the paper Dollar cannot be trusted to hold its value in the same way, because it is extremely easy to put ink to paper and print more Dollars whenever the government deems it necessary.

Printing more money whenever the government deems it necessary, however, is not a good idea for our economy. Some people believe it stimulates our economy, but instead it makes the value of each and every Dollar in circulation go down. Watching the gold price and the silver price is a way to measure the value of other currencies. When the value of a precious metal begins to go up in Dollars, it suggests that the Dollar is actually losing value.

Considering all of the above information, investing in precious metals may be a good idea at this time. If you wish to do so, you should first set a budget of how much you are willing to spend, and then stick to it. The next important question is why you are choosing to invest. If you are investing as a way to potentially make a profit, then you should invest in precious metals electronic funds. However, if you wish to invest to protect yourself from an economic collapse or hyperinflation, then you need to invest in actual physical metal. In doing so, you would be purchasing actual bullion and coins. Make your investments wisely, and be sure to consult with a professional.