Gold has been valued for its intrinsic worth for thousands of years, serving as currency, jewelry, high-status regalia, and much more.
Moving forward to modern times, this asset is used similarly, but its applications have evolved. While still used in jewelry and other decorative arts, gold and silver are now primarily seen as investment vehicles to preserve long-term wealth. The intrinsic value of these metals has been recognized as a stable and reliable hedge against inflation, economic uncertainty, and other financial risks.
Today, its role in wealth preservation is particularly notable, especially within the context of Individual Retirement Accounts (IRAs).
Long-Term Wealth Preservation
Physical gold has been regarded as a reliable store of value and a hedge against inflation for centuries, making it an attractive option for long-term wealth preservation. Unlike paper currency, which can be devalued through inflation, or financial assets like stocks and bonds, which are subject to market volatility and risks associated with the underlying entities, gold retains its intrinsic value over time. It's not only universally accepted and easily tradable but also impervious to decay or degradation. In uncertain economic climates, historically gold often outperforms other assets, as investors consider it as a "safe haven" asset.
Gold is a naturally occurring element, and its quantity on Earth is finite. Due to the limited supply and scarcity, this asset has led to a perception of increased value over time. Whether viewed as a hedge against inflation or as a symbol of timeless prosperity, the constrained supply of gold continues to be a compelling aspect of its role in the global economy. Ultimately, the value of physical gold can be affected by supply and demand.
The historical performance of gold provides insight into its behavior as an asset. Gold has seen varying levels of demand and value over time, often influenced by economic conditions and global events. For instance, amid the 2008 financial crisis, gold's status as a safe haven asset led to surging demand, thereby driving up its value. However, it's essential to recognize that past performance does not necessarily indicate future results.
What You Can Do
If you're considering diversifying your investment portfolio with physical gold for the purpose of long-term wealth preservation, several avenues are available to you.
A popular approach is to purchase gold through an Individual Retirement Account (IRA), which comes with its own set of tax benefits aimed at enhancing retirement savings.
You can explore these advantages by setting up a tax-advantaged IRA with platforms like iTrustCapital. We offer transparent pricing, no commissioned sales reps, and no overpriced coins. Best of all, there are no storage or management fees.
Interested in learning more about gold? Check out this article.
This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.
iTrustCapital is a cryptocurrency IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.
Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.
Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.
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