To Invest in a Gold ETF or Gold Backed IRA?
Burbank, CA -- (SBWIRE) -- 02/08/2013 -- Many argue that the benefits of buying a ETF or Electronic Traded Fund is equal to that of actually buying the physical goods. This argument however does not hold a lot of water in my opinion as you cannot compare a piece of a paper to that of a physical product you can touch and hold. Any fund is essentially a fiat currency in of itself and the whole premise of buying gold coins and bars is to separate you from that level of uncertainty and instability.
Typically an ETF fund would invest in gold mining companies and other distributors and even the retailers that may buy and sell gold. All of these companies are subject to the whims of their various countries as well as the potential downfall of their currencies. With many gold mines existing in countries that are by and large unstable this means that the companies that mine from those countries are also just as unstable.
Now, there is certainly a need to invest in equities for your future, any diversified portfolio should have a good balanced mix of these so to plan for any event that may come up. Solely investing in gold and silver would be as foolhardy as not investing in it at all.
Buying Gold Jewelry and Coins on the Open Market
Some believe that buying gold coins and jewelry is the same as investing in a gold backed IRA . After all they are both investing in physical gold and silver. However, when you buy gold or silver jewelry you are not getting the best grade of this precious metal you can. Pieces of jewelry are valuable; there is no doubt about that. However, you may not be able to obtain 99.99% pure gold pieces as if you bought gold bars and coins.
Buying gold on your own may be a good idea, because if there really was a major crisis you would need something to barter with. But you should not get a large stockpile ready for something that may or may not happen. Having a large amount of jewelry, gold, and other valuables only makes you a target for thieves and invites disaster in your life, just use some common sense here.
Silver or Gold which is Best?
The current argument that is going on at the moment is in regards to the price of gold versus the price of silver and which one would make for a better investment. While this argument is certainly interesting, and fully researching both sides can illuminate a lot of useful data, it is pretty pointless if you plan on having a diversified portfolio.
Silver prices have historically been suppressed over many years, with the exception of some major spikes caused by some manipulation of the market. This is one of the key reasons why so many argue that buying silver at this moment is the best investment you can make.
While the cultural demand for gold is very high the simple fact of the matter is that there is an abundance of gold in both the open market and in the mines that are currently open. Some have said that there is a 500 year supply of gold that has yet to be tapped. Now, this may cause others to be swayed to buy silver as that is one area that has the most potential for future growth.
Regardless if you buy silver or gold the upward trend is definitely going to continue. The prices of these commodities should rise regardless if the economy goes bad or continues to recover. As more small investors become aware of the possibility to invest in gold and silver for their IRA these bars and coins are going to be gobbled up rapidly.
The best time to act on this opportunity is now. Just imagine if you did not act now and discovered that you're great investments you bought before just became worthless. Buying gold and silver in your IRA is one of the wisest ways to secure your future.
About Regal Assets
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