The Safest Place To Combat Inflation Is A Gold IRA Account
No one familiar with financial market history would deny the fact that gold and the US dollar are negatively correlated, meaning that they normally move in opposite directions. Due to the close relationship between stocks and the dollar, gold typically finds itself in a negative correlation with stocks also. Nevertheless, stocks and gold both showed gains in the month of February, for only the third time in the past ten years. The common denominator affecting both financial instruments is growing INFLATION.
Many financial analysts feel that the market is in a precarious and fragile condition, requiring care and coddling. They share concerns that the Fed is trying to make up too much ground now, for actions that should have taken place earlier. Regardless, the Fed voted at their March meeting to increase the benchmark interest rate again, the second increase in just three months. They attributed the move to a number of positive indications including; a rise in retail sales to a substantially higher level than projected in January, the largest monthly consumer prices gain in nearly four years, a ten-year high in home builder confidence, and generally increasing consumer confidence that the economy is poised for more robust growth.
All indications from the Fed are that they are “on course” and still intend to raise interest rates two more times this year, most probably in June and December. In a post-meeting news conference, Fed Chair Janet Yellen said, “It’s important for the public to understand that we’re getting closer to reaching our objectives.” She stressed that the Fed is data-dependent and is not interested in aggressive tightening for its own sake. Firming inflation numbers, combined with strengthening domestic demand and a tightening labor market could serve to fortify the Fed’s plan.
Nominal inflation can actually stimulate an economy, but hyperinflation has a strong history of economic devastation. During the early 1920’s in Germany, it literally took a wheelbarrow of marks to purchase a loaf of bread. In the late 2000’s it was more cost-effective to use Zimbabwe’s Zim Dollars as toilet paper, than to purchase the product and the worst hyperinflation in history occurred in Hungary after WWII, where the annual inflation rate exceeded thirteen quadrillion percent (13,000,000,000,000,000%).
The US has never seen such hyperinflation and isn’t anticipating such a possibility. But today’s economic uncertainty combined with rising inflation are powerful forces that could spell the end of America’s second-longest bull market, which is already long in the tooth and riding on highly over-valued stock prices, as reported by a large number of financial professionals. One of the most simple, secure & safe form of protection in America is to transfer or roll over any portion of an existing IRA or an old 401(k) to a self-directed IRA than can hold physical gold and silver. Entire process takes about a week and its tax free, penalty free transaction. Request your Free Gold IRA Guide from American Bullion to learn your options.
Today’s nanosecond trading technology works tremendously to the disadvantage of individual investors. Huge hedge fund transactions can affect the market quite dramatically and without warning. After 9/11/2001, the market closed for a week. The first day it opened, the market fell 7.1% and went on to lose 14% that first week. The market lost more than 40% between October ’08 and March ’09. These activities are gradual in comparison to the immediate devastation that is capable of happening today. If there was ever a time to consider “overcompensation,” then this is it!
History shows that one of the best and proven ways for private investors to protect their portfolios from the potentially devastating effects of a dropping or debased dollar, or a sudden downturn in the stock market, is the physical accumulation of physical gold and other precious metals. So you should be assured that there is a safe haven. You can find peace of mind amidst the risks that threaten your retirement account. Never doubt this. Gold and silver are the only proven method of surviving and preserving wealth of humankind. And, it is a piece of cake to roll over your old 401(k) into a Gold IRA with American Bullion, #1 rated Gold IRA company. Click to request your Free Gold IRA Guide.