Understanding economics is often confusing for most people, as there are many key factors to understand. The first step would be to understand the current monetary system and where it is going. The current monetary system is known as the fiat system, which means that there is no direct backing of gold or silver as there was before 1970.
Why all fiat money systems end:
It is important to remember that all fiat monetary systems throughout history never last more than 30 to 40 years. The current one is going to be around 46 years old, which means it must end and switch to a system that is again backed by hard assets like gold and silver. If you currently own an IRA, then it can be quite risky to hold it in dollars that can devalue overnight or significantly reduce your purchasing power due to hyperinflation. One option is to transfer to a gold or precious metal IRA, as this will offer additional protection against inflation. Gold has never dropped to zero in value, however currencies like the dollar can drop to zero through the process of hyperinflation. A gold IRA can be a smart way to protect your future retirement account from hyperinflation and potentially make significant profits, too.
Gold has outperformed the stock market in the last 15 years and many analysts believe this will continue for the foreseeable future. Many billionaires today are openly admitting that they are increasing their investments in gold, so this is a key sign that they believe that gold will increase significantly in the coming years. There are many great companies that offer a precious metal-backed IRA, but you need to do your research to find the best ones. Be sure to check their Better Business Bureau rating, as well as any complaints received in recent years. Don’t risk your IRA with companies that don’t have a good record with the BBB. Also keep in mind that the current monetary system is very likely to switch to a hard asset backed system and therefore a precious metal backed IRA is ideal to protect against any currency devaluation which can reduce the purchasing power of your IRA if it is kept in dollars. . There are many options available for investing in precious metals, and if you already own an IRA, then it may be a smart choice to reinvest in a gold IRA.
