Gold Bullion, Charts, Options, Futures and Jewelry Investing.: Gold for Retirement

As a Financial Consultant with more than 20+ years experience I can tell you that inflation is a double edged sword. First, let's look at the pros:

If I buy a house for $200,000 and inflation is 10%, it makes my mortgage of $200,000 feel like $100,000 in less than 7.2 years. Thus debtors benefit as long as they have a fixed rate of interest that is less than the rate of inflation...(Please see my calculators at http://www.drocktonmortgage1.com). The same thing holds true for other debt on a fixed rate.

Inflation adversely effects the stock and bond market but will positively influence the foreign currency market and lead to dramatic gains in gold and silver (click here to learn more).

In fact, gold has averaged close to 30% return over the past 7 years and is great for IRA rollovers! When one horse is dying another is finding new life.

Money can also be made in the futures market in any commodity (gold, gold options, gold futures, oil, gas, wheat etc.,) during an inflationary cycle.

Now for the down-side:

Inflation will kill your 401K, State Retirement Plan, bonds, savings bonds and any other cash investments because it forces interest rates to go higher. New bonds are in competition with the existing ones that pay a lower rate of interest in your portfolio. Thus, higher paying bonds cause yours to loose value. Again, you are better off with gold bullion or gold bullion coins.

Wages rarely keep up with inflation and most people are not sophisticated enough financially to reap the benefits. Thus, 99% will be on the losing end. Among these are Farmers that are selling into the futures markets at a guaranteed price, builders that sell at a fixed price or anyone else that cannot provide immediate delivery of a product or service. On the other hand gold options and gold futures are a great hedge against inflation no matter what you produce.

As production costs increase, it cuts into profits and leads to cost-cutting at the expense of the consumer who is very "price sensitive" but not necessarily "quality sensitive". Thus the weakening dollar continues to lose purchasing power. Saving gold makes far more sense than saving dollars.

Inflation is a double edged sword. As long as you know which side will cut you, you can actually benefit from it. Sadly, though, the average individual will never realize those benefits with variable rates on their consumer debt; food and housing expenses; transportation costs; etc...

Gold is the logical hedge against inflation:

Small investors can purchase 1/10 of an ounce gold bullion coins. Every working family in America should be setting aside 10-15% of their income as savings. If everyone did this, it would play a positive role in financially stabilizing the family. With 70% of divorces resulting from financial stress, gold would also help stabilize relationships.

Since divorce has such a huge impact and cost to society at large, it would be in everybody's best interests to promote saving gold. To be effective, savings and investments need to be taught at the high-school level. A Mandatory section on buying gold should also be included.

For those not willing to wait on the politicians, some families have found that setting aside some time, one day a week, can be very beneficial for teachings about gold and other investments. Discussing family finances before they reach crisis levels could play a major role in preserving our families. Planning for crisis through saving gold and gold bullion coins should be an important part of that training.

Retirement plans should include a mandatory precious metals component for those that desire to invest in gold. Not in gold mines or gold resellers, but actual investment in the metal itself.

Top Recommended website for: gold bullion

Gold for Retirement Plans:

Gold and Retirement Plans

The basic format of any retirement plan assumes that you are deferring assets until you reach retirement age. Most plans rely on third party to administer the investors money. Among these are IRAs, 401 Ks, Roth IRAs and other popular retirement plans.

Gold Bullion is a great investment for 3rd Party Plans as long as someone else holds the assets. In other words, you won't take actual possession of your gold until you retire or another event takes place to allow you access to your gold without penalties. Some banks will act as a third party custodian for a fee. Remember, if you want to invest in gold, you better make sure your 3rd Party is someone that you can trust.

For those of you that are nervous about someone else having possession of your gold, there are other retirement vehicles available. These are called self-directed plans that allow you to hold onto your gold bullion directly. The two I like the best for gold are the SIMPLE IRA and the self-directed IRA.

You will need to talk to your tax professional about setting up a self-directed plan for gold. The rules are simple. You buy the gold. You hold the gold. You sell the gold. All transactions are reported as funding transactions whereby you avoid disclosing the asset; but you report on the amount of money you invested in gold.

Self-Directed plans are designed primarily for the self-employed. So, if you have a business, this is your best option for investing in gold. If you don't have a business, start one! All you need is a source of legitimate revenue and an LLC or Corporation with you as the principal owner. With the LLC, you should act as the registered principal. With a corporation, you should own the majority of the stock and act as President.

Corporations and LLCs are legitimate third parties and are allowed to purchase gold and gold bullion to fund retirement vehicles. Even if you are the primary owner!

To be eligible, the investment must be 90% or greater in gold content. This means that most gold bullion coins, like the American gold Eagles, are ideal assets for these plans. The benefit of minted gold coins is that they are also technically currency, another permitted investment for retirement plans.

One of the fears of owning gold bullion is the fear of the government calling in all of the gold and replacing it with a paper currency. This has happened before in the United States under Franklin Delano Roosevelt. Roosevelt ordered all Americans to turn in their gold for dollars under his gold confiscation act. He also made it illegal for Americans to own gold.

While this is a very real possibility in the near future, there are technical loopholes that will allow you to avoid confiscation.

1. No government can confiscate the currency of any other government. The United States, for example, cannot demand that Canadian Currency be confiscated. Neither can Canada confiscate US currency.

2. Gold Bullion Coins minted by another country cannot be confiscated by the United States Government.

3. The gold Krugerrand, minted by South Africa fell into disfavor as a result of Apartheid. Prior to that, it was the investment of choice in America before the gold confiscation act was repealed.

4. The Gold Canadian Maples, which are 100% pure gold, came into favor after the Krugerrand. They are available in 1 ounce, ½ ounce, and ¼ ounce and 1/10th ounce. These gold coins are softer because they contain no hardening metals. Store them in hard plastic cases for the best possible protection from scratches and defacement.

To learn more about gold and IRAs please click here: Or visit one of the many advertisers on this blog.

Top Recommended website for: gold IRAs