Retirement Savings – The average annual rate of inflation in the decade of the 1970s was 7%. A repeat of this annual rate of inflation over the next five years means if you retire today with retirement savings of $500,000 your $500,000 would have the purchasing power of $356,493 in five years. In ten years your retirement savings of $500,000 would have the purchasing power of $254,174.
Contrary to the loss of purchasing power as described in the above paragraph, over long periods of time gold has served to preserve purchasing power. The preservation of retirement savings via ownership of gold is illustrated very succinctly in this article from the “Austrian Classroom”. As is illustrated in this article, when measured in terms of gold ounces, the price of a new car has actually gone down between 1913 and 2011.
If you have retirement savings and are expecting it to last over a long period of time, perhaps even by way of passing some of it on to your children and grandchildren, you should consider diversifying some of your retirement savings into physical gold bullion. In fact, you may want to consider taking some of your retirement savings from your traditional stocks, bonds and cash based IRA and transferring it to a precious metals IRA. You may not know it, but the IRS allows you to own gold and silver bullion in a precious metals IRA.
If you are interested in taking some of your long term savings – retirement savings or non retirement savings, and purchase gold and silver bullion for its 3000 year track record of purchasing power, give us a call and we will answer all of your questions and help you get started.
Ron Miller – President and Founder, Atlantic Precious Medals LLC
Phone: 1-800-APM-GUIDE 1-800-276-4843