Written by Steve Cannon for USSANews.com.
The first thing to realize about an IRA is that it is a “long term” investment. So, due to its “newness,” it’s difficult if not impossible to grade the potential for Bitcoin over the long term. Stocks have a history of being cyclical, so as long as you’re paying attention to its cycle and market conditions that could turn suddenly, they will most probably remain a staple in most financial and retirement portfolios, for a long time to come. Some consider gold to be cyclical too, but the most important reason for its inclusion within an IRA is to act as a hedge against loss for the large percentage of “paper” assets within a typical IRA. Gold, in the context of this article, refers exclusively to its physical form, in other words, they are actual gold and silver coins and bars. Also, your financial advisor or stock broker likely will not recommend physical precious metals. Because, they are only licensed and trained to sell stocks, mutual funds, cash and bonds. Simply put, they cannot make money from a physical metal transaction.
In the short term, Bitcoin has proven to be intensely volatile. Thirty years ago, on Black Monday, October 19, 1987, the Dow Jones Industrial Average fell 22.6% in just one day, so intense short-term volatility can also manifest itself in stocks. Even gold saw a 13.2% one day loss back in 1980, but again, the true purpose of having gold in an IRA is to provide a hedge against cataclysmically potential losses of paper assets. So, in the short term, any financial instrument has the potential for a sudden dip or correction.
Bitcoin has seen dramatic drops based on daily news, such as CEO’s delivering a condemnation, countries like China, threatening to regulate or disallow, and yet in spite of these threats and dips, recovery has been swift and the climbing value continues. Stocks at the moment are long in the tooth, oversold from most points of view, and well-overdue for a sizeable correction. Gold and other precious metals have been holding within a fairly contained channel, roughly 1/3 to ½ below previous highs. So the opportunity to cash out some percentage of stock ownership, at or near an all-time high, and convert into precious metals that have plenty of room to grow, in addition to the protection value that they carry may never be more lucrative.
In summary, in spite of a possibility for continued growth, the stock market is most possibly nearing the end of the second longest bull-run in history. Meanwhile Bitcoin too is regularly achieving near daily highs and precious metals continue to waffle at lower value levels. All things considered, there may never be a greater opportunity to initiate, increase, or substantially increase the precious metals portion of your financial and/or retirement portfolio. Sell high and buy low may never again be so easy, obvious, and profitable. You can easily own gold by transferring any portion of your IRA, 401K, or other type of qualified retirement account, into a physical gold IRA account. It is secure, simple & quick – 100% tax-free and penalty-free.
Don’t let today’s precious metals availability and lower prices be anything more than another reason to stock up.
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