If you’ve been paying attention to the news, then you may have noticed this announcement: China has opened its gold market up to foreign investors for first time in human history.
This could be a very exciting moment for gold. See convert IRA to gold for get more info.
China has taken this step in an effort to boost its currency and influence global gold prices. Coincidentally the gold prices are also extremely low. In fact, the gold selling price is five percent less than its production cost. If gold prices fall, this forces many mines across the globe to close. When their costs of extraction exceed the spot market price, mines are forced to scale back and cease being profitable. The inevitable result of a slowing production is that the price will rise again.
Russia and China both have taken up gold hoarding in recent times. Because they believe gold’s value is an economic hedge against the instability in the world, this is why they have taken to hoarding large amounts of gold. Investors are not limited to Russia and China. Many financial experts across the globe advise investors to use gold as security. A gold-backed IRA can be converted from a traditional IRA. This is one of the best ways to achieve this. A gold IRA will provide physical gold as backing for your IRA. Instead of having your IRA backed by US currency, the account will use gold as a security. The process of transferring from IRA to IRA is completely tax-free.
Why Should You Invest In Gold?
* Because gold is a tangible and hard asset, cash is not.
* Because the U.S. dollar has been declining as a proportion of the world’s currencies supply.
* This is because many pundits claim that the dollar’s days are over as the world’s leading currency. Dollar has dropped to a low of 15 years when compared to other currencies. This is due in part to the willingness of more countries to use foreign currencies to conduct business. This is not good for the dollar’s future.
* Because the Dow has outperformed gold by over 400% in the past 10 years.
* Because gold has been around for centuries and its appeal has endured the test.