Gold currently trades at slightly over $1,100 at ounce for spot transactions. That’s a substantial discount to its all-time high of nearly $2,000. Some will say it is not a good time to invest in precious metals as interest rates in the United States are bound to rise, thus making gold less desirable because of better alternatives in the form of higher rates paid on savings.
But, interest rates will still remain historically low. While there are short-term fluctuations in commodity prices, gold is known as a good hedge against inflation over the long term. For thousands of years, the yellow metal has been considered to be a storage of value as well as a medium of exchange. Gold is still considered money, although daily transactions require paper currency or cards.
As a storage of value, gold becomes especially precious during times of turmoil, whether economic or political. As a commodity of finite supply, gold can’t be simply produced without limits, or printed as paper currencies are.
Yet another benefit of holding gold is the ability to diversify from financial assets such as stocks and bonds. That is not to say that investors shouldn’t hold these financial assets, but rather that they should seriously consider adding gold to their investment portfolios.
Gold is also a commodity. It is something that can be physically held (unlike stocks or bonds) and moved (unlike real estate). While it is possible to invest in gold by buying exchange-traded funds (ETFs), investors can also buy physical gold. Companies such as US Money Reserve will deliver gold coins and bars to investors.
When it comes specifically to US Money Reserve, the company guarantees the purity of gold sold. Investors can buy government-issued coins such as American Eagles, Canadian Maple Leafs, or South African Krugerrands in various sizes, ranging from 1/10 oz to 1 oz. coins. It is also possible to buy gold bars as well as other precious metals such as silver.
For the United States residents, US Money Reserve provides Gold Individual Retirement Accounts (IRA) accounts with which investors can save for their retirements, while qualifying for tax shelters.