How Important Is It That Gold Did Not Drop Below 1200 For IRA Investing?

Well, we watched gold take another big drop recently. Bernanke implied that perhaps quantitative easing was over and this was one of things that had a negative impact on the market. I think a lot of people thought, OK, this is the big drop that’s going to really hurt gold IRA investing. But I watched the pricing and didn’t hit the panic button.

We watched gold values drop and come near that 1200 number. But the pricing flirted with 1200 but never went below it. And slowly but surely gold values went up. As of today, we’re back up around 1330.

gold chart 2014

ira precious metals

So how important was it that gold did not go below 1200? Well of course, like other amateur gold ira investors I’m glad it didn’t. And I thought this was basically the market saying we’re not giving up on gold yet.

For long-term investors like us we simply can’t get caught up too much in the short term market gyrations.

Part of the reason I don’t fret too much over precious metals pricing changes in the short term is that I know that these are reactions in the market to factors like the Fed, U.S. economic data and the possible easing of asset purchases. If I was trying to make a buck by, say, next month, these would be very important things for me to pay attention to.

But there are other factors that are actually much more important for me to pay attention to for investing in gold for an IRA since I am holding it for a long run . . .

One of the most important of which is the rising demand for physical gold in countries like China and India. Yes, it’s true that gold ETF’s have not done that well in China for instance. But remember that it is physical gold that that the Chinese really prefer, especially as they rise into the middle class. In fact, the World Gold Council actually estimates that China will surpass India as a consumer of gold this year.

At the end of the day, you just need to know which data and trends to pay attention to with regards to investing in gold for your IRA and which to not pay attention to. Learning how to do that will make you a better investor and frankly make it a bit easier to sleep at night.

And if you ever want more professional advice, give my friends at Regal Assets a shout. They were the guys I got started with when I first considered gold IRA investing. They have a free guide that will set up to make a really informed decision and I can’t think of a better way to get started.

Published by

Michael Brown

Michael Brown

Retirement planning expert and rollover IRA to gold adviser.