Is The COVID-19 Pandemic A Great Time To Invest In Gold?
Right now most of the US is looking for answers on how to deal with the financial crisis that the COVID-19 pandemic has caused. Some are looking for extra work in jobs that are deemed essential and can help ensure they continue to have an income. Others have looked to take advantage of the government’s stimulus package hoping to pocket some savings from it. But this crisis may be a time to consider buying physical gold either to own right now or to have stored away as part of an IRA investment. There’s several reasons why you should.
The Fed Is Printing A Lot Of Money
With the current COVID-19 relief bills that congress has been passing, this is leading to an increase in money printing by the Federal Reserve. Quantitative easing has long been the solution to trying to deal with economic and national debt issues, and making more money readily available to circulate. More money at lower interest rates can help the economy, but where too much money is injected into it, inflation could become a major problem.
With inflation, prices of basic goods and real estate could rise extremely high and hurt your current savings. It’s also possible that deflation could hit in which prices drop too far down that economic activity is hurt too much and the money supply tightens too much. These situations require consumers to think of new ways to protect their money against these calamities.
Other Reasons To Consider New Investments
Even beyond COVID-19, there are other concerns you should have. Social security is going bankrupt in about 14 years according to several experts, an issue that could cause retirees to take a hit. The stock market is down at the moment, and certainly it’s reasonable to assume that economic activity will drive back up once both the US and international economies start increasing activities. But it’s likely some publicly traded companies will take hits and possibly go bankrupt. While the stock market shouldn’t be abandoned for investing, there should be great consideration given to alternative investing in hard assets like gold.
What Gold Offers That Other Assets Don’t
Physical gold is always valuable and it cannot be created by central banks out of thin air. When the Fed’s quantitative easing policies become unreliable, gold is often stable and has been known to rise in value when inflation hurts the dollar. One way you can own physical gold and have it stored away in an IRS approved depository is by purchasing it through a self-directed IRA. According to Gold Co, “with a self-directed IRA, you can invest in real estate, bonds, private businesses, precious metals, and more.” If you already have a 401k but want to use it to invest in gold, you can learn how to do so in a gold IRA rollovers guide.
The COVID-19 pandemic will go away at some point, but the financial ramifications of the current crisis could have major effects down the road. But you can prepare for some of the impact by owning physical gold and investing in a gold IRA.