Are you thinking of selling your gold IRA and going purely into the stock market? Read AuGold IRA’s take on the current state of the precious metal IRA market before making your decision.
If you are thinking of closing your gold IRA account after what John Powell said at Jackson Hole, you are not alone. Thousands of other investors pulled out of the gold market, resulting in an almost 2% drop in the price of gold the day after the speech.
But did you know that there are other things that affect gold prices besides local economic policies? In their blog, AuGold IRA explains why holding on to your gold assets during this recession is a good idea.
Read more about precious metals IRA at https://augoldira.com/analyst-say-gold-set-to-bounce-back-after-recent-fall
Federal Reserve Chair John Powell talked about tightening the US economy’s monetary policy as the country enters a recession in 2023. Powell said that while this will result in a weaker job market and a slow-growing economy in the short term, it is the best way to systematically fight inflation and create economic stability for the nation.
According to AuGold IRA, gold and other precious metals are considered a good hedge against inflation, but they do not pay dividends or earn profit like stocks and bonds. With higher interest rates, the value of gold will diminish because investors will want to move their funds to the stock market where they can earn more over the short term.
However, the blog explains that there are external factors that affect the price of gold. Unlike the stock market, the price of gold is dictated by global supply and demand, and political turmoil pushes the price of gold up as international investors try to protect their wealth by buying hard assets.
For US investors like you, this means that it would be wise to hold on to your gold IRA accounts, even if domestic economic policies seem unfavorable. The blog suggests that due to the volatility of the international gold market, holding on to physical gold assets might present you with a profit opportunity in the looming recession.
“Besides the Fed, the gold market may need to watch out for other factors as well. One major factor is China’s potential military intervention in Taiwan. Another one is Russia’s possible military intervention in Ukraine. If the US and other western forces will intervene, this could lead to a global war and might cause an economic crisis,” the blog speculates.
Learn more about how gold performs during inflation at https://augoldira.com/analyst-say-gold-set-to-bounce-back-after-recent-fall
