Asset Strategy, Market News, Retirement & Pensions

How to Find Financial Security in Uncertain Times

Gold Alliance disclaimer

Rising inflation, a dwindling stock market, the weakening dollar, the pandemic… These days, it seems as though we’re surrounded by uncertainty, so it’s no wonder there are so many Americans looking for something to give them hope for financial security.  

Last year, the stock market looked great, but those record highs aren’t doing your portfolio justice anymore.  

So, how do you protect or even potentially grow your savings during these hard economic times? Where do you find financial security? Can the best IRA accounts even help you? 

Financial security: The peace of mind you feel when your money, investments, and other financial aspects of your life are stable and look to remain stable in the future.

While many assets are looking bleak these days, there is one asset that can help you achieve financial security through diversifying outside of the market, and since you’re reading this article on our website here at Gold Alliance, you probably aren’t surprised to hear that we believe that asset is gold. More specifically, a Gold IRA that gives you the protection of IRS-approved depositories as well as the tax benefits of other retirement plans.  

We strive to be among the best Gold IRA companies out there. As a matter of fact, our clients often regard us as the best Gold IRA company for customer satisfaction and trust. 

But how does a Gold IRA help you work toward financial security? Let’s take a look. 

A Gold IRA can help protect against stock market crashes 

A Gold IRA is an Individual Retirement Account that allows you to store gold, silver, platinum, and palladium. Historically, gold has performed as a great hedge against stock market corrections and crashes. More often than not, when the stock market tumbled, gold’s value increased 

The chart below shows how the price of gold has performed during major market corrections.  

Gold is a proven hedge against stock market crashes, and gold has provided people with financial security, returning an average of 6.4% while stocks fell an average of 21.7%.

As you can see, during some of the worst market crises in recent US history, gold has proven itself to be a hedge that helped many people maintain financial security, returning an average of 6.4% while stocks fell an average of 21.7%. 

When the stocks and bonds begin to fall in value, those who diversify outside of the markets often have a better chance of protecting their finances than those who only diversify within the stock and bond markets.  

Imagine achieving true diversification with a Gold IRA, since gold historically goes up when the stock market goes down, you can potentially reduce the risk to your savings and could see significant gains. 

A Gold IRA can help protect your savings against inflation 

Since the start of the pandemic, the Fed has had the printing presses running seemingly nonstop as the government orders more and more money to be printed. This is one cause for the inflation that we’re seeing, and many Americans are already feeling the impact of increasing prices at the grocery stores and gas pumps.  

The chart below shows the money supply. Notice the huge bump when the pandemic hit. In just one year, the Fed has increased the money supply by 25%. 

The Federal Reserve's money printing means that money supply has been on a steady rise over the past 20 years but exploded in 2020.

The Fed acted surprised to learn that inflation numbers in April of 2021 were the highest in 13 years. Now, we are looking at 40-year inflation highs. But there’s no doubt that inflation is already here. This places your financial security at risk as the dollar (and dollar-denominated assets) suffer. 

Take a look at the purchasing power of the dollar over the last 100 years since the Fed was created.  

The purchasing power of the US dollar is on a steady decline, threatening your financial security. 

Having gold in an IRA can help you avoid the negative impacts of inflation as you plan your retirement. Gold can’t be debased because it can’t be reproduced or printed. That’s why gold has a history of being a strong hedge against inflation.  

A Gold IRA holds tangible assets 

Stocks and bonds are digital assets. They only exist electronically. The same goes for cryptocurrencies, like bitcoin. Accounts holding these assets may be susceptible to hacking or can be compromised in other ways, and their existence relies on the internet and our infrastructure.  

On the other hand, gold (along with other precious metals) is a physical asset that you can hold. It cannot be hacked or compromised. Gold has long had value as a form of currency and an important material in many industries.  

Your Gold IRA will hold an element, something you can put in your hand. With the knowledge that gold can be quickly and safely exchanged for cash when needed, many who acquire gold move with a sense of certainty, in addition to help with financial security that most other assets cannot give them.  

Learn more about Gold IRAs today 

If you are one of the many Americans who have already acquired gold and other precious metals, you’re probably relaxing in your favorite chair with a cup of coffee by your side while reading this article. After all, you can relax because you know that you have already done the best you can to achieve financial security.  

But, if you’re still looking to learn more about acquiring precious metals to help you hedge against inflation or work toward protecting your financial future from market corrections, contact us today.

gold alliance logo with your gold ira experts trademark