Gold vs Stocks

Many people choose gold IRA investing (or other precious metal investments) as a hedge against the unpredictability of today’s stock market. Rolling over a traditional IRA into a precious metals IRA can help investors avoid a volatile market, which seems to be especially prevalent these days. Let’s look at the benefits of investing in gold vs stocks for the long term.

There are numerous benefits to having a gold IRA, especially when considered against investing in the traditional market alone. Gold and precious metals can be a source of savings, as well as a source of profit. The stability provided by owning precious metals will help to assuage any investor’s fears about the possibility of market instability and inflation.

It has never been easier for investors to convert a traditional IRA into a gold IRA rollover and there are many options for precious metals investment that allow you to diversify your retirement savings.

Additionally, you have many choices as to which types of precious metals you buy and the trustee you appoint to maintain possession. Rolling over a traditional IRA is IRS-approved and tax-free, so it will not be a hassle for you to create your new gold IRA.

You can learn more under our gold IRA rules section.

Gold Provides Stability

Since a precious metals IRA is made up of physical gold, silver, palladium or platinum, investors get the benefit of maintaining physical assets, rather than paper currency or stocks.

This ownership of gold vs stocks has several benefits, especially in a time of turbulent economic changes. For example, gold serves as a kind of savings account with potential upside gains. You will always know how much gold your account holds and it will never be worth zero, whereas with stocks in traditional IRAs can potentially be worth nothing.

Additionally, whenever you are ready to take possession of the gold, you will be able to do so for its real value. With stocks, there may be a better or worse time to cash out because of the market’s performance. This issue of timing is a worry that you do not need to have if you invest in gold or precious metals.

The stock market today is difficult to predict. Economic concerns abroad and domestic worries about inflation combine to create a rapidly cycling market. Many of the safest fixed investments are only paying minimal returns, and people are concerned with investing too much for fear of a sudden change in the direction of the market.

Take a look at the gold vs stocks (S&P 500) chart below:

Gold vs Stocks Chart

In 2008, when the stock market plummeted in the United States, many people with only traditional investments lost a significant portion of their retirement savings. Those with gold IRAs did not suffer the same fate, and were able to ensure that their savings remained secure.

Investments in gold are a modern investment solution to the unstable economy and stock market. Precious metals IRAs can give the financial stability that a retirement account should provide, with an assurance that it will always be a steady source of wealth.

Gold Provides Savings and Profit

While investing in gold vs stocks is an attractive way to hedge against inflation and market failure, it is also possible to receive a substantial return of investment from gold vs stocks (or other precious metals), far more so than what would be seen with a traditional market investment.

Gold investments generally increase in worth faster than most stocks, and there is less chance for the price of the gold you earn to be devalued in the future.

For example, imagine that you made a $10,000 investment in gold, and another $10,000 investment in the S&P Index in 2001. By the end of 2012, your $10,000 gold investment would have grown to $62,484, which is an increase of 534%. That same $10,000 stock investment would only have grown to $12,294, which is a 22.9% gain. See the daily gold audit at BullionVault.

While this is an example of a specific investment in a particular stock, it does demonstrate the power of gold vs stocks to be a vehicle for profit as well as savings, especially when compared to a traditional market investment.

Gold vs Stocks – Now is the Time to Invest

Recently, the prices of gold has been stable within a defined range, which makes gold investment an even more appealing option. Along with other alternative investments, retail investors are beginning to realize the benefits that come with investing outside the traditional market. In addition, more and more mainstream investors are capitalizing on the benefits of a gold backed IRA and converting over to gold vs stocks.

The earlier a self-directed gold IRA is started, the more opportunities there will be for an increase in value.

However, when it comes to long-term gold investing, timing is not as big of an issue like it is with timing the stock market. It is always a good time to roll over your current IRA into a gold or precious metals IRA if you value safety and and long term appreciation. There is no better option for retirement savings than maintaining physical gold as a hedge against economic uncertainty now and in the future.

We recommend you take a look at our gold IRA reviews page which will help you pick a gold IRA company to work with.