As shown in the chart, exceptional demand for gold bullion & coins continued to rise in 2018, and now as more and more savvy investors (including governments and financial institutions) are all agreeing that the answer to, is it a good time to buy gold in 2019, is a resounding YES!
Gold has outperformed the stock market for the last 6 months of 2018 and looks poised to continue it’s rise in 2019. (see correlation chart below)
Gold For Retirement Accounts
The urge to invest gold in your retirement account has never been stronger and the precious metals demand never higher. Investing physical gold in your IRA is more relevant than ever before. The reason for this is primarily because gold prices have now reached opportune buying levels (close to the lows of 2016).
Another major reason for this buying bonanza, besides being the always valuable commodity that it is, gold is universally accepted and is a true rarity. A true store of value and hedge against the constant printing of paper money the world over.
Demand has exploded: the chart below couldn’t make it more clear.
The Real Value Proposition
It not only serves as a real “value holding” hedge to smooth out any losses when stock markets fall sharply, but also against currency wars or a possible dollar devaluation. The jury is still out on using gold as a vehicle to combat inflation but, yes that is also a historical factor to consider as well. Gold is now being used as a hedge against both inflation and deflation.
Gold’s allure has endured the test of time and its value has kept in line with the stock markets for the most part, as far as correlations, consistently rising in unison until late 2012. (see chart below, dating back from 2002 to 2014).
It seems now as gold begins to make a rebound to test its previous highs ($1800), at the same time the stock market is showing signs of reaching a top and could be reversing, furthering this negative correlation that has endured for years and most likely will continue for some time to come. Yet another reason to hold some gold in your portfolio.
S&P 500 overlay (black line) vs Gold – Inverse Correlation throughout 2018
Okay, this all might seem like old news, however the price is of gold is still close to the lows and is getting ready for an enormous break-out in our opinion. Check out this chart below and decide for yourself. But as we see it, their couldn’t be a more opportune time to buy gold, especially to diversify out of the stock market.
Precious metals in general are now in great demand (more than usual strong demand) due to its limited supply, as mentioned before and is currently at bargain price when looking at the potential high of around $1800 that was reached during the latest financial crises and beyond.
This extensive buyer demand has helped physical bullion and coin prices rally and this is seen to be the beginning, expected to continue into 2018 and beyond. The reason for this is the longer-term physical gold purchasers see the recent price lows relative to its highs as an opportunity to accumulate even more of these gold assets.
What Are You Waiting For?
Timing is everything, so don’t miss out on a huge opportunity. If you are interested in buying physical gold bullion or rolling over some retirement funds into a gold IRA then please take a look at this review of our top recommended gold company here.
As the graphic in the beginning of this article illustrates, even the central banks of China, India, and the Middle East, along with many other countries are currently buying up gold for their reserves like there is no tomorrow.
Gold is used in many different ways too, not just for retirement or investment purposes. Just to name one example, other industries use the incorruptible metal because it’s a good electricity conductor, thus making it one of the few available materials to meet today’s technology requirements.
Aside from its industrial uses, gold can also be very convenient because it is portable in the form of coins and bullion. This is one of the many reasons that investors buy gold bullion and investment grade coins, because it is easy to carry and store, and is accepted anywhere in the world.
Differences When Investing in Gold
We’re not talking about investing in a gold fund or gold ETF’s which are tied to the stock market and are in paper or digital form. What is suggested is investing in physical gold bullion that you can actually hold in your hands. This can come in many forms: strands, ingot, nuggets and coins but the latter is the most common one. If having gold in your retirement account, which you can transfer funds from an existing 401(k) or IRA, is something that you are interested in; you must make sure that the physical precious metals that you choose are IRS approved. More on that below.
In order to invest in the right gold coins, only buy coins from a reputable dealer and make sure your gold is created by accredited manufacturers. We’re not recommend buying collectible (numismatic) gold coins for investment purposes. Because when selling in a crises situation, the price will be reliant upon market forces not intrinsic values.
This highly sought after coin is investment grade and is the type of quality coin that is a popular recommendation among serious gold buyers. Click the coin image to view the most recognized investment grade bullion coins in the world.
Investing Sooner is Better Than Later
The answer to your question, is it a good time to buy gold, is yes and the sooner the better! You can save yourself time when investing in gold bullion by contacting a reputable precious metals dealer that will walk you through the whole process. If you plan to directly buy bullion, the right dealer should coach you on the best types of gold to buy. Our advice would be to stick to IRS approved precious metals.
Click below image for a list of IRA and IRS approved precious metals.
Also, if you don’t have a lot of extra cash laying around but you have a retirement plan, you can rollover your 401k or IRA (fully or partially) into a precious metals IRA or transfer funds from your existing IRA into gold to offset any risks associated with owning stocks or mutual funds. Doing this is just like upgrading your retirement plan into a more secure standing and having added insurance.
* You may request a gold kit below to go over all of your options.
So, chances are your current retirement fund is probably still in monetary (paper or digital) form, meaning it is directly tied to any negative fluctuations of the stock market. This is very risky business, especially if the market falls again (as it did in 2008) just when you reach retirement age. To secure your funds from being affected by inflation and these other factors, backing it up with gold in your retirement account will protect its value, which has steadily increased over time throughout the centuries.
As the years go by, the value of gold is ever increasing while the purchasing power of the dollar is decreasing, thus making it a good idea to invest in gold as soon as you can. The best way of securing and safeguarding your financial future is having gold for retirement accounts achieved through a Gold IRA or by purchasing physical gold bullion/coins.
Feel free to comment and add your gold price predictions for the year ahead. It should be interesting…