How to Protect Your Retirement Savings with Gold

How to Protect Your Retirement Savings with Gold

Make no mistake about it, if you just put all your hard earned dollars into a savings account, you are wasting money. Seriously, you are shooting yourself in a cork financially. Every single day that your money is left in the bank, you are leaving your money to rot. Think about it, your money is earning a very, very low interest rate and you have to pay taxes on that interest rate. Since interest rates normally trail in the rate of inflation, you are basically losing out, why? Inflation is slowly eating up the value of your money. Every single day, the amount of goods and services that you can buy with every dollar that you keep in the bank goes lower and lower. Eventually, you will reach a point where you cannot buy anything with your saved dollars. That's how bad inflation can be, this is why it's very important that the moment you put your money in the bank, you start thinking about investments that you can spend that money on. When you invest your money, you increase your chances of beating inflation. This is the key threshold in considering different investment options. How much of a rate of return will you get with those investments so you can beat inflation? Savings is not enough. Unfortunately, many American retirees are happy with just retirement savings plans. These pay too little and might put these retirees into dire financial straits sometime in the future. If you want to truly beat inflation and you want to protect yourself in the future, you need to figure out how to protect your retirement savings to gold. Keep the following discussion in mind.

Gold Reserve Expansion Has Been One of the Focus of Most Central Banks

You can rest assure that gold always has value in the future. At the very least, gold has many industrial uses. Many industries use gold in their industrial processing. Also, gold is preferred as a form of jewelry, there are many different kinds of jewelry in many different cultures and these different culture sand their different economies use gold to create that jewelry. Also, gold is being hoarded by different central banks. These big banks are seeing that paper money is not a way to go. If you are holding on to paper dollars, those paper dollars are depreciating with time; Central banks know this. This is why many Central banks are loading up on gold. When they do this, the price of gold is held steady and eventually, the demand will so far outstrip the supply that the price of gold will spike up especially when there will be an economic shock in the future.

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Gold Has Successfully Conserved Wealth for Generations

One of the reasons why people protect their retirement savings with gold is the fact that gold is used to conserve wealth from generation to generation. Think about it, the price of your land might go up and down, the price of your artwork might go up and down, the price of your money can definitely go down, the price of your stocks can go up and down. However, from a generation to your generation, gold will always keep going up. This is why when push comes to shove, wealthy families from all sorts of backgrounds and all sorts of political backgrounds in geographic regions on the planet, have preferred gold. They sell everything they have, convert it into gold and either get out of the country or park it in the bank. Regardless, when bad times strike, people can rest assure that they can transfer their wealth from one generation to another when they convert everything into gold. That's how powerful gold is. If gold can protect assets and wealth in that particular context, how much more can it protect your retirement savings? Make no mistake about it, you can protect your retirement savings with gold.

Gold Is Considered a Safe Haven during Political and Economic Turmoil

While the last crash in American currency happened quite some time ago, this doesn't necessarily mean that currency devaluation is not in the works in the future. You never know what is around the corner when it comes to the economy. US dollar can continue to crash. You only need to look at the price of oil. When the price of oil doubles or triples, you know that the US dollar has sunk in value. It impacts the price you pay for food, rent and services. Currency devaluations do happen. Sure, the United States have been more fortunate than other countries, especially the developing world. That doesn't necessarily mean that the US is immune from currency devaluation. If you want to protect your retirement savings, you need to figure out how to protect your savings with gold. When you retire, you are basically living with a fixed income. You don't want to be in a position where the prices of has pressed so much and so badly that you are basically sitting on a pile of worthless paper. The best way to protect yourself in this situation is to protect your retirement savings with gold.

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Gold Prices Increase Because It's the Alternative to US Dollars

You have to remember that the global economy really runs on two tracks. On one track, it runs on fiat currency, chief among this of course is the US green bag. The US dollar really is just a piece of paper that only has value because the US government and all its military, economic, cultural and social might say that it has value. It can only retain so much value for so long as people respect and value the United States. No one government stays at the top forever, the US will decline eventually. That is a reality. If you need proof, just look at the UK pound and what happened in the United Kingdom. Every world power has its time in the sunshine until it eventually enters a period of decline. Parking all your retirement to savings in fiat currency like the US dollar is a bad bet, why? Fiat currency depreciates because the government that issues that fiat currency can't resist printing out more fiat currency. That's why the US dollar continues to decline in value because there are more US dollars in circulation. The more paper currencies printed, the lower the amount of the dollars that are already in circulation. That's basic economics. You can protect your retirement savings in this context with gold, why? Because you hit your ride on the other form of currency in effect in the world. I am talking of course about precious medals. There's no lying with gold, you know that it always has value, why? Gold has industrial uses, gold is used as jewelry, and gold is used to back up currencies by Central banks all over the world. Central banks hoard gold because they don't trust the amount of paper currency they have. They hoard gold because they want to at least have some form of currency that will always have value. If you protect your retirement savings with gold, you are buying into this mentality – you are buying into a commodity for a wide variety of reasons will retain its value over the long haul.