Gold is one of the most prized minerals in the world due to its high price and distinctive characteristics. Many people are unaware of its versatility and contributions to daily life because it is most frequently associated with jewelry.
Alexander Spellane is the CEO of Fisher Capital, a full-service, conservative-owned and operated retail precious metals company specializing in IRAs. Alexander became a self-made millionaire by the age of 27 and, according to Success.com, he is America’s youngest gold expert. Alexander also took over the NYT office space in Los Angeles and has hired dozens of US veterans as employees at Fisher Capital.
According to the young gold millionaire, there are numerous reasons why Americans buy gold. The five top reasons are:
● Gold Metal IRAs Can Have Significant Tax Benefits
In Alexander’s opinion, tax advantages are one of the benefits of investing in gold. Although income tax may still apply to a person’s social security benefits after retirement, you can use a self-directed IRA to buy gold and take advantage of all the tax breaks offered by this kind of account. Compared to a typical 401k or Roth IRA, self-directed IRAs give you a lot more flexibility, and your tax and investment expert can help you determine the best option.
● Gold Can Protect Against Inflation Risks
Gold is a haven and an inflation hedge. It typically costs more as inflation reduces the purchasing power of the dollar. Gold owners are therefore hedged against a declining dollar since the price of each ounce of gold in terms of dollars will increase as inflation soars and devalues the worth of the dollar. As a result, the investor receives more money for each ounce of gold as compensation for this inflation.
● It’s a Good Way to Save Money for the Future
Alexander suggests it would be wise for younger people to diversify their portfolios to pursue gold. “Spreading your money among various investment types, as opposed to locking it up all in stocks and bonds, may help you better manage risk and return. You’ll increase your chances of seeing your money grow by investing a portion of your money in gold in addition to your other investments,” the Fisher Capital CEO adds.
● Easy to Buy and Sell in the Market
Due to its numerous buyers and sellers worldwide, gold is considered one of the most fungible assets. Gold has no counterparty risk, so you retain full ownership and possession when you purchase it rather than having a third party keep track of your assets.
● Portfolio Diversification
Finding investments that are not highly correlated to one another is the key to diversification; historically, gold has negatively correlated to stocks and other financial instruments. This is shown by recent history: the 1970s were excellent for gold but terrible for stocks; the 1980s and 1990s were excellent for stocks but terrible for gold, and 2008 saw stocks fall significantly as investors flocked to gold. To lower overall volatility and risk, well-diversified investors include gold in their portfolios, bonds, and stocks.
In addition to the above reasons, the self-made millionaire stated that gold does not require much maintenance. “It can be passed on easily to the next generations, and its price stability is a plus. Again, holding it in your hands feels good, and nothing is manlier than buying and owning gold.”
When asked about the future, Spellane said he looks forward to the day Fisher Capital will become America’s largest precious metals dealer.
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