March 1, 2016
The United States Mint released its 2016-dated bullion coins recently and orders for the new coins soared. With some investors interested in adding gold and silver to their portfolios, some industry experts believed that 2016 may be a peak year to buy gold.
Investor sentiment for gold continues to improve with a majority of retail investors expecting higher prices coming. This sentiment is due to the unprecedented monetary policies with Central Banks internationally, including the Federal Reserve, as well as the global economy continually showing signs of severe stress.
There are several reasons some investors are choosing gold. One being that gold is higher in major currencies. U.S. investors are used to looking at the price of gold in U.S. dollars; however price (and its behavior) is important in other currencies too. Gold has gone higher in all major currencies; the only exception is gold in U.S. Dollars.
Not only are some American consumers investing in gold but gold repatriation has also gone mainstream internationally. A surprise in 2014 and 2015 was the many countries looking into bringing their gold back “home,” including Germany, Netherlands, France and Belgium.
Historically, gold has been the hedge against economic volatility and crisis. IRA accounts are traditionally dependent upon a select group of stocks, bond and/or mutual funds which are inextricably linked to the economy. So, when the economy suffers, the value of many IRA accounts begins to plunge. Gold, on the other hand, has an increased chance at maintaining consistency.
If you are considering holding physical gold in an Individual Retirement Account, 2016 may be the right time to move forward.