Why Gold

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Gold has been the world’s leading safe-haven asset for over 5,000 years. Here’s why.

Market-based financial assets like stocks and bonds held in an IRA or a 401(k) are volatile. There’s never a guarantee they will do well or continue doing well. This uncertainty is why you need an asset to hedge their performance and protect your financial future, and this is where gold makes sense. Let’s look at the benefits of adding precious metals to your portfolio.  

Achieve True Diversification

Time and again, gold has shown that it’s uncorrelated with mainstream financial assets like stocks and bonds. In other words, gold tends to go up when the stock market experiences a correction. It’s for that reason that diversifying your portfolio outside of paper assets like stocks and bonds is a good idea — in good times or bad times — as gold will safeguard your portfolio’s value when those assets inevitably lose value.  

Protect Against Inflation

The value of precious metals is inversely correlated to the value (and supply) of paper currency: Gold and silver prices tend to increase during inflationary periods, when the dollar loses value. As the Fed continues to print money, households will have more money to spend on goods, which drives up demand and prices and causes inflation. This weakens the purchasing power of the dollar. If some of your wealth is in precious metals, you can have peace of mind because the Fed can’t print gold and debase your assets. Over long periods of time, the value of gold outpaces inflation, so with gold your purchasing power scales — which is the exact opposite of your purchasing power sitting in the dollar and in many dollar-denominated assets. 

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Protect Against Crisis

Precious metals have been a go-to safe-haven asset for centuries. In fact, gold has outlived thousands of economies and currencies since the earliest record of human history! In more recent history, physical gold and silver have shown a solid record of appreciating during recessions and financial crises as people seek the safety of precious metals. So, when the US was thrown into a financial crisis or a recession, like in 2008, gold protected the portfolios of those who acquired the precious metal within their IRA/401(k). 

Out of Reach of Wall Street and the Banking System

An often-overlooked benefit of owning physical precious metals is the security of having an asset you can physically hold. In today’s technological era, banks and other financial institutions are less secure than they used to be, which means your mainstream assets, such as bank savings, are at a higher risk of being compromised, hacked, or “frozen” by your bank. Doesn’t it make perfect sense to have a portion of your portfolio in physical gold and silver — real and tangible assets that you can store completely inaccessible to the banking system? What’s more, the interest rates you get on your bank savings are outpaced by inflation, which means the money in your savings account is actually losing purchasing power, not gaining it.  

Gold IRAs

Planning your retirement can be stressful, but if you have a Gold IRA, you’ll feel better prepared because you know your savings are safe. Rolling a portion of your existing IRA or 401(k) into a Gold IRA allows you to achieve true diversification for your portfolio and gives you a strong hedge against inflation and financial crises. 

Learn more about Gold IRAs.

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