In today’s world, there’s a growing interest in investing in precious metals. But what’s driving this trend? Let’s explore why investors are so keen on precious metals, how they help protect against potential losses, the best exchanges for trading these metals, and how to start a Precious Metals Individual Retirement Account (IRA).
The Rising Interest in Precious Metals Among Investors
When the market shows signs of instability, investors often turn to safe havens like gold, silver, and platinum to protect themselves from losses. Historically, the value of precious metals tends to go up when the stock market struggles over a long period. So, adding precious metals to your investment portfolio might help protect against losing value.
You might wonder, “If the market is doing so well, why worry about losses?”
Even though the stock market has been doing well recently, with record highs, this raises another concern. The rate at which stock prices are growing has surpassed the growth of corporate earnings. One way to measure the market’s sustainability is the Schiller PE ratio, which compares stock prices with corporate earnings. Currently, this ratio is at 26.5, while a sustainable market usually has a ratio of around 16.
There are other worrying signs as well. Take oil, for example. In the past few months, oil prices have dropped significantly, losing over two-thirds of their value. OPEC recently decided to keep oil production levels the same, aiming to reduce shale production in the U.S. As a result, many U.S. shale companies might go out of business, leading to massive job losses and possibly triggering a market selloff.
Geopolitical threats add to the concerns. Terrorist activities, like those led by ISIS, have escalated, leading to the deployment of more U.S. troops. Additionally, the ongoing conflict between Russia and Ukraine over Crimea and the sanctions imposed on Russia by Western countries complicate the situation further.
Steps to Start a Precious Metals IRA
As mentioned earlier, precious metals can be a good shield against stock market losses. Starting a precious metals IRA is a simple three-step process at Lear Capital. Here’s how you can do it:
1. Open an account with a reputable broker like Goldco Precious Metals.
2. Make your initial deposit after opening your account.
3. Work with your broker to create an investment strategy for future growth.
In addition to IRAs, there are many other ways to invest in precious metals. It’s a good idea to talk to your financial advisor to find out how gold and other precious metals can protect your investment portfolio.