As an investor, there are plenty of options you can choose from to build a portfolio for your retirement years. One of those options is a gold IRA. Thanks to changes in the law back in 1997, you can now open a gold-backed IRA and enjoy the tax benefits derived from it.

The question many investors are asking is whether a gold IRA makes sense or not in the current environment. We believe it does. To make our case, we present you these five reasons:

#1 – Gold Is a Stable

The number one rule of any investment is that it needs to be looked at through eyes focused on the long-term. Even when trading something as volatile as currencies, a Forex trader only makes a healthy profit when strategies are based on long-term growth.

To that end, gold is incredibly stable. While there are price fluctuations depending on market conditions, gold has historically increased in value year after year. There are few other investments able to match the performance of gold. In the event of the collapse of securities and other similar investments, gold will still be valuable.

#2 – Gold Is Tangible

Do you remember the dot-com crash of the 1990s? If so, you know there were plenty of paper millionaires who became real paupers overnight. These individuals were victimized by the fact that their assumed wealth was only on paper. Once their businesses were worthless, their wealth disappeared.

Gold is advantageous because it is a tangible investment rather than a paper one. When you have physical gold in your hand, it doesn’t matter what happens to the stock market. Your gold can be converted to cash any time you like.

#3 – Gold Is in Demand

You might not be aware of this, but gold is in high demand among the world’s central banks. At no other time in history have we seen the central banks buy up gold as rapidly as they are doing right now. So why would they want gold? Because they are concerned, the U.S. dollar will collapse and, as a result, no longer be regarded as the reserve currency. Any country whose money supply is tied to the U.S. dollar will suffer if they do not have the backing of something like gold.

#4 – Gold Is a Hedge

The second rule of investing is that you never put all of your financial resources into a single vehicle. That’s even true of gold. Nonetheless, gold has historically been a hedge against losses incurred through other investments. For example, you might lose 10% on the stock market this year. Gold will likely make up for those losses as its value continues to climb.

#5 – Experienced Investors Are Buying up Gold

It has been said that in order to be a successful investor you need to start doing the things already successful investors are doing. Guess what they’re doing. Buying up gold. The world’s wealthy investors are spending millions of dollars every year accumulating gold for their own portfolios. If they are doing so, there must be some value in it.

klarman buy gold

The five reasons we have listed here should make it clear that a gold IRA does indeed make sense. Investing in gold is a great way to add both stability and profitability to your portfolio. We encourage you to contact a gold IRA custodian to learn more about gold investing. It may be the wisest financial decision you have ever made.