Gold has been around for centuries and is a traditional way to save money. The problem with paper currency, though, is that it can be devalued over time by inflation. Gold does not have this problem because the value of gold is based on supply and demand. In addition, gold prices are so stable that they generally don’t fluctuate more than 3% in any given year! This makes it an excellent investment opportunity for those looking to increase their retirement savings without risking too much of their capital.
The article provides reasons for how gold beats paper savings: stability against inflation, safety from geopolitical turmoil, and increased purchasing power with a lower cost per ounce than other metals like silver or platinum.
Stability against inflation: one ounce of gold today is worth about the same as one troy ounce was in 1800. If you invest $100,000 now into an IRA containing gold bars, it will be worth approximately the same amount over time. That’s not true with paper currency which can lose its value to inflationary pressures where prices go up over time.
Reach of government: unlike paper currency, gold is an asset that will be there outside of the reach or control of anyone country’s central bank. This means it can also cross international borders, which makes it a good choice for retirement savings since more and more people are living abroad these days where their home currencies may not have as high value as they once did.
Purchasing power: gold prices are relatively stable compared to other metals like silver or platinum, which can fluctuate much more because it is not as rare. This means that the same amount of money invested in an IRA containing one ounce of paper currency will buy less over time due to rising inflationary pressures, where the opposite holds for gold.
Liquidity: Liquidity is needed to make it easier for individuals. In retirement, families who depend on IRA savings afford their daily expenses and meet other financial needs like college tuition or medical emergencies. Gold is more liquid than paper currency because there’s always a market where buyers can find it no matter the economic conditions.
In conclusion, the article states that because gold has been used as currency for centuries by many different civilizations, it is relatively stable and highly liquid. Furthermore, investing in an IRA containing gold can be much safer than keeping money in paper currency which may devalue over time due to inflationary pressures or volatility caused by geopolitical turmoil.