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Do you want to invest in your future? Do you want to make sure that your family is taken care of even after you are gone? Then you can invest in bullion with your super funds.
You may think about the benefit of investing in bullion for your retirement plan. You might think that it is just a metal or commodity and has nothing to do with your retirement savings.
However, here are reasons why you should include this kind of investment in your financial portfolio.
Gold Investment That has a Low Correlation to Other Assets
Gold imports valued at A$6.5 billion, ranked as Australia’s seventh-largest import commodity in 2010.
For example, if you invest in stocks, there is a high probability of them going down as the economy goes through a recession. In contrast, precious metals have an even record of being up or down during those specific phrases.
It means they provide low volatility, and you can still gain profits even when the market is down.
You should invest your super funds in bullion because it will serve as your backup when you retire. If you are not receiving the returns you want from other investments, this can help make up for your losses.
A Hedge Against Inflation
As you head to 2017, inflation continues to be a significant concern, and there are no signs of it stopping anytime soon.
It means you will need an investment that can withstand high inflation levels and protect your purchasing power. Gold and silver provide the best protection against inflation because their prices have risen with time.
For example, between 1970 and 1980, the price of silver increased by more than 500 per cent. You can use this increase as a yardstick or reference when you want to find out how much your wealth has grown over time, even if the value of other assets remains unchanged.
A Hedge Against Global Uncertainty
In recent times, you have seen many unexpected events in the global economy. Political turmoil has shaken people’s confidence and affected all kinds of investments.
In contrast to other assets, precious metals are almost recession-proof, and this makes them an ideal way to protect your wealth from a crisis.
You can use the opportunity to grow your portfolio and make the most out of this uncertainty.
There is an Increase in Global Precious Metals Demand
According to some estimates, the demand for gold and silver has increased by almost 800 per cent over the past few years. It means it will continue to rise, and your investments will grow as well, even without you doing anything. You can use the investment to your advantage so that your gold and silver assets accumulate value over time.
Legal Gold and Silver Holdings in Retirement Plans
As of now, there are no legal restrictions on investing in precious metals for retirement plans.
You don’t have to think about managing complicated paperwork or approvals. You can add your bullion to your other assets so that they grow together.
Final Thoughts
No matter what kind of investment you are looking for, it is crucial that you include precious metals in your portfolio. It ensures that when the time comes when you retire, you can meet all your family’s needs even during uncertain times.
Moreover, there are no restrictions on how many ounces or grams of bullion you can add to your retirement plan.
