By J.P. Dahdah, Founder & CEO of Vantage
What will be your IRA investment guide? With a Self-Directed IRA you have the opportunity to invest in precious metals. Not just gold ETFs, mining companies and other paper-based options, but the real thing. We are talking about physical gold or silver coins and bullion. Had you done so in the years building up to 2011, you would have done very, very well.
Gold has officially entered a bear market, declining more than 30% since September 2011. To many, the decline was inevitable following its rise year after year for 12 straight years. A sharp correction seemed inevitable. After all, most bull markets have several corrections of 30% and gold had only experienced one steep fall of 29% in 2008.
Now that gold has fallen, what should you do?
Remember that during the 1970s bull market, gold fell 47% before rising to its peak in 1980. No one can rule out gold declining further, but there are still many who believe that accumulating gold as an IRA investment, even below US $1,400/oz., is a good idea.
Has gold finished falling? Is the bear market really over?
Jump on Google and have a look at the commentary yourself. Truth is, nobody really knows.
Nouriel Roubini of www.theguardian.com predicts that gold will fall below $1,000/oz. while Goldman Sachs predicts prices will settle for the rest of the year.
There isn’t any certainty with any IRA investment
Therefore, the choice becomes one of risk and your personal philosophy for managing risk.
Remember, the fundamental strategy behind precious metal investing is that it is meant to be a hedge against a decline in the value of the U.S. dollar. It is usually not sought after as an appreciation play over the long-term. Determine what your retirement portfolio needs to accomplish your long-term objectives and let that be your IRA investment guide.
For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or ClientService@VantageIRAs.com.