The Benefits of a Gold IRA Rollover in a Diversified Portfolio

Whether you invest as a career or you’re investing to build wealth for retirement, diversification is something you’re going to hear a lot about. Whether you know the reasons, diversification is going to be touted as a good thing and indeed it is. However, the question you may have is what does diversification mean to you. As someone who’s perhaps investing for retirement, diversification means that your investment capital is spread out over a number of different commodities. Things like a gold ira rollover, investments in short-term or long-term bonds as well as investments in stocks and real estate are good ways to diversify your portfolio.

There are a number of different benefits to all of these investments and there are even more investments that you can make to further diversify your investment portfolio. However, a number of conversations will center around precious metals such as gold, silver, platinum and even copper. The fact is that in any diversified portfolio, you should have some exposure to precious metals. There are a number of different opinions in terms of how much exposure you should have. Some people say as little as 10% and other people say as much as 30%. The real question you have to ask yourself is why exposure to precious metals within your portfolio is important.

As governments place the value of their economy on paper money, and in order to ward off inflation, governments print more money pursuant to their spending. This can actually devalue paper currency. Gold is an excellent way to protect your liquidity from decreases in value because of higher inflation. Whether it’s in a place like America, Great Britain or China, paper money is at risk for inflation and gold helps to even out the losses.

In addition, market volatility can cause you to lose money in certain sectors of your portfolio such as real estate or stocks. While these commodities are subject to volatility, you can always lean on the excellent value in gold as a way to balance out your portfolio and actually come out ahead.

As you can see, having exposure in precious metals such as gold is important. You’ll need to determine how much you’re comfortable with in your portfolio, but regardless of how much of a percentage that is, you shouldn’t ignore the benefits of having precious metals in your investment portfolio.