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Gold and Silver – Which Should You Choose?

Gold-And-Silver

Yukon Cornelius would approve investments made in gold and silver.

Key Points
  • Gold is at near-historic rates
  • Silver is becoming more popular
  • Investments in precious metals are growing in popularity

Economic Woes

The economic recovery is not be speeding along at the rate hoped for, and the market continues its fluctuations. Investors are particularly concerned about the economy as the pandemic continues to rattle markets and nations. But precious metals are attracting investors and buyers at higher rates than any time since 2011. Gold tends to appeal to those looking to hedge against inflation and peaks during high inflation, unemployment and crises. Silver is appealing because it also has medicinal uses, as well as other industrial applications.

The supply of gold is not increasing as COVID-19 forces mines closed, as well as other businesses involved, including disrupting supply chains. Therefore the rush of buyers, investors, and consumers of gold may be looking at limited resources. The COVID-19 outbreak has caused investors and consumers to rush to offset their losses due to the volatile stock market, inflation expectations, and city lock-downs, which have a massive impact on each as well as on the economy in general.

Golden Trends

The trend to buying gold does not look to abate any time soon, as the COVID-19 pandemic continues to ravage the United States and much of the globe. Gold is more popular than ever worldwide, as investors express their uncertainty about the future.

As of this writing, gold is sitting at over $1,800. This is an 18% increase from the beginning of the year. As the pandemic continues, gold should continue to hold it’s value. According to a recent WSJ article, we may approach the all-time high of gold in the near future.

Silver Speak

Silver prices have climbed higher in the last few weeks than they have been in years, lifted by factors such as soaring investor demand for precious metals. In this WSJ article, we learn that silver has climbed a whopping 68% since the middle of March. Almost all asset classes tanked at the start of this crisis. However, silver has made a remarkable improvement. Investors are encouraged by the steps governments and central banks have taken to strengthen an economy decimated by COVID-19.

In addition, silver prices have also benefited from the reopening of factories in the U.S., China and elsewhere. Silver has industrial applications, medical purposes, and use in consumer electronics, among other uses. From jewelry and table settings, to dentistry and more, there are common uses for silver throughout the world. Although many people flock to gold, silver should not be overlooked!

Gold and Silver for Retirement

Gold and silver are always a good investment, especially when being held for retirement. With a Self-Directed IRA investors can devote their funds to many different alternative assets that are not as affected by stock market fluctuations and other volatility.

Alternative assets are investments outside of traditional investments. Common examples of alternative investments include real estate, private equity, precious metals, such as gold, and venture capital investments. Whereas traditional investments include stocks, bonds and bank CDs.  Alternative investments are more complex than traditional investments, which is why they appear to be better suited for “accredited” or “qualified” investors.

Self-Directed IRA with Checkbook Control

A Self-Directed IRA with checkbook control is becoming more popular than ever as it allows investment in many investment opportunities beyond the norm. What you gain with checkbook control means that you can listen to your own guidance and intelligence.

  1. Complete Control of Your IRA – With the Checkbook IRA, you benefit by investing in assets you understand. Don’t understand Wall Street? Don’t invest in Wall Street. With complete control of your IRA, you can invest in real estate, tax liens, precious metals and many other popular investment assets. Additionally, you no longer need to wait for a custodian’s approval.
  2. Easy & Immediate Investments – When you see an investment you want, simply write a check or wire the funds from your self-directed IRA LLC bank account. Your self-directed IRA LLC is seen as a business entity, therefore it can establish its own bank account, which gives you the ability to directly access the funds you need. Within minutes, the investment is yours.
  3. More Affordable – Because you’re the manager of the IRA LLC, you don’t need to pay a custodial fee for each IRA investment, or the transaction fees applies whenever you make a transaction through a custodian. So this last benefit of the Checkbook IRA is that you simply make a one-time establishment fee.

Alternative investments are becoming very popular because they offer the potential for higher returns and they have lower correlations to traditional investments. When investments do not rely on each other or the same influences, they can protect a portfolio from market volatility. Every investor should look into purchasing both traditional and alternative investments. While growing wealth is the goal, protecting it is just as important. Learn more about investing in precious metals with your IRA funds.

Should you invest in gold and silver? That’s up to you to decide as we don’t offer financial advice. We simply write about the trends we are seeing. It’s important to work with a certified financial planner to decide what types of investments you should look into. It all comes down to personal choice, but precious metals always seems to have a place in one’s portfolio.

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