Is Buying Gold a Good Investment?

HomeInvestingIs Buying Gold a Good Investment?

Want to Score Cash For Free?

  • Survey Junkie: Earn up to $50 per survey with one of the highest-paying survey sites on the web. Join Survey Junkie Now
  • SoFi Money: Earning money for unlocking better features sounds like a dream. But this free banking app really pays you $100 with you switch your direct deposit to SoFi Money. Get SoFi Money.
  • Aspiration: This mobile banking app lets you do everything for free and takes no fees — ever. Better yet, if you join through this link you can get $100 in your new account.

Is gold over-hyped or is it still a good investment? Here are the top reasons how buying gold as an investment may be a good idea.

Along with the many investments that are available today, investing in gold is still a popular investment for various reasons.

This shiny yellow substance is not only attractive, but it also can retain value when other asset classes fall in value such as stocks and real estate.

Adding some of this precious metal to your individual retirement account (IRA) may be just what you need for a more comfortable retirement and a great long term investment strategy.

Why You Should Invest in Gold

Gold has always been in demand and will continue to do so. It is admired greatly for its beauty and it has always been used for money for millennia. Gold has been the currency that moved the mark for hundreds of years — as far as 1,500 years ago.

Even today, this has not changed. People still rush to obtain gold when economies fluctuate. There are certain advantages of gold as an investment, here are some of the reasons you should consider:

Want Free Money?

  • Aspiration: Want to get spotted a $150 for free? Simply sign up for Aspiration, and the free banking app will give you cash for free, you just relax while it gives you $150 just for opening a new debit card. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account.

1. A Hedge Against Inflation

Gold has historically risen in value as inflation increases. This means that when the dollar decreases in buying power, as well as the yield from Treasury notes, gold can still provide you with the stability your retirement account needs.

2. Gold Can Be Used as an Investment

Right now, gold is rather inexpensive. In 2008, it sold for $869.75 per ounce. It hit is high mark just three years later at $1,895 in 2011. With inflation, it is apt to keep on rising from where it is now. It is always advisable when investing to buy low and sell high for the greatest profit. This means gold can keep your investments solid and growing especially in a bear market.

3. Gold Is a Safe Haven

During various financial crises of the past, investors have quickly bought gold when they saw trouble coming. Many of them sold their stock and bought gold.

4. Political Uncertainty

As the world appears to become a more unsafe place, people become afraid of the collapse of their economy. This has earned gold the nickname of “crisis commodity.” During those occasions when things look bleak, gold will often do better than other types of investments.

5. Limited Supply

When the amount of gold available in the world becomes harder to get, the price of gold increases. In recent years, most of the gold made available has come from central banks. This reduction has occurred since 2000, and mines have produced less gold than usual in recent years.

These five reasons reveal why gold has been and still is a great investment. By adding some to your retirement account, you can grow your retirement faster and provide greater stability for it.

Value of Gold bars

Different Types of IRA’s

When it comes to preparing for retirement, there are two primary types of IRAs. You can put your money into a traditional IRA or a Roth IRA.

  • Traditional IRA – This kind of IRA lets you get a tax deduction (up to a limit) on the money you put into the account. No taxes are paid on the interest until it is withdrawn, but at that time, your taxes will likely be lower. You must start to withdraw money when you turn 70 1/2.
  • Roth IRA – Money put into a Roth IRA is taxed – no deductions allowed. No taxes are paid on the interest as it builds, or when you withdraw it, up to certain limits. There is no mandatory age at which withdrawals must start.

How Does an IRA Work?

IRAs give you a way to save money for retirement and lets you build your savings without paying annual taxes. There is a limit on how much you can put into an IRA: $6,000 if you are under 55 and $7,000 if you are over 55. The interest is compounded, so if you start early, you can have a much larger retirement sum when you reach retirement age.

Precious Metal IRA

There is a way that you can invest in gold and use its stability as a way to reinforce your IRA and protect your retirement. Another kind of IRA, called a self-directed IRA, is capable of enabling you to take advantage of having gold in it. The value of the gold in it is affected by the gold price in the USA.

This type of IRA will let you put gold into it. The gold must be placed into an IRS-approved custodial account. Once you put gold into your account, you can track the value of it by looking at gold futures.


Want Free Money?

Simply sign up for Aspiration, and the free banking app will give you cash for free, you just relax while it gives you $100 just for opening a new debit card. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account.

Learn more

The Best Apps to Save You Real Money

We are on our phone a lot, right? Wouldn't it make sense to save money with the best money saving apps?

AppAt a glancedownload
Get a $100 bonus at Aspiration when you open and fund an account with $10 or more. Then use your Aspiration debit card to make at least $1,000 worth of cumulative transactions within 60 days of account opening.
Open a new account in the next 24 hours and you could get up to $200 in free stock.
Truebill reviewTruebill
This free app delivers on its promise to save you money effortlessly. You can use it to lower your bills, cancel unwanted subscriptions and bill negotiations.

Games That Pay You To Play - Yes, We're Serious

These 3 apps will PAY YOU to play games on your mobile device:

  1. Blackout Bingo - You can download this app and start getting cash rewards for playing bingo.
  2. Solitaire Cube - Earning money by playing games on your phone sounds like a dream. But this app really pays you for playing solitaire with cash rewards.
  3. Pool Payday - Earn up to $50 per month playing billiards with one of the highest-paying gaming apps on the web.

About the author

Brian Meiggs
Brian Meiggs
Brian Meiggs is a personal finance expert, and the founder of My Millennial Guide, a personal finance site helping you put more money in your pocket. He helps millennials follow the smart money in order to increase their earning potential and start building wealth for the the future. He regularly writes about side hustles, investing, and general personal finance topics aimed to help anyone earn more, pay off debt, and reach financial freedom. He has been quoted as a top personal finance blogger in major publications including Yahoo! Finance, NASDAQ, Discover, MSN Money and more.


Please enter your comment!
Please enter your name here

On a similar note...

Explore More On

7 Best Bank Bonuses and Promotions of April 2021

aspiration★★★★★This Company Will Give You $100 for Opening a Free Account
Boost your savings and earn up to 1.00% APY interest on your savings. Get up to 10% cash back on your purchases. Get $100 bonus when you spend your first $1,000 with your new Aspiration Plus Card.
personal capital★★★★★
The First and Only Interest Earning Crypto Account
Receive up to $250 Bitcoin bonus when you make qualifying deposits over the first 30 days. Receive up to 8.6% annually on your crypto. Join the most trusted financial services for crypto investors on the market.
personal capital★★★★★Get Up $200 in Free Stock for Joining
Commission-free stock, ETF and options trades. Get a free stock worth up to $200 when joining (must complete application). Simple, easy to use investor platform with no account minimums.
sofi★★★★★All-In-One Investing That's Easy to Use
Tired of Robinhood? Invest in stocks, ETFs, crypto, or automated investing in all one app. No commissions for stocks and ETFs. Complimentary access to SoFi Financial Planners.
personal capital★★★★★The Smart and Free Way to Manage Your Money
Take control of your finances with the perfect union of technology and highly personalized service. Get access to free online financial tools, including retirement planner, investment checkup, net worth calculator and more. Digital-first wealth management advisor with 24,000 clients in 50 states.
blooom★★★★★401K and IRA Management
Start your free 401k and IRA management now. Find and reduce hidden fees. Improve your diversification.
cit★★★★★Enjoy the Benefits of a CIT Bank Money Market Account
A CIT Bank Money Market Account helps you get more from your savings with interest rates for maximum growth. Earn over 7x the national average with high-interest rates. It now pays to open a money market account with CIT Bank.
My Millennial Guide