Embarking on Your Precious Metals IRA Journey: An In-Depth Handbook

In today’s world, more and more people are getting interested in investing in precious metals. But why is this happening? Let’s take a look at why investors are drawn to precious metals, how they can help protect against potential losses, the best metal exchanges, and how to start a Precious Metals Individual Retirement Account (IRA).

Why Precious Metals are Gaining Popularity

When the market shows signs of instability, investors often turn to safe investments like gold, silver, and platinum to protect their assets from losses. Historically, the value of precious metals tends to rise when the stock market faces significant downturns. So, adding precious metals to your investment mix might provide some protection against devaluation.

But Why Worry About Losses When the Market is Doing Well?

It’s true that the stock market has been booming, reaching new highs consistently over the past year. However, this rapid growth might be a cause for concern. Stock values have been climbing faster than the earnings of the companies themselves. For a sustainable market, the usual benchmark is the Schiller PE ratio, which compares stock prices to company earnings. Currently, this ratio is at 26.5, while a stable market is usually around 16.

Other worrying factors are also at play. For example, oil prices have recently plummeted, dropping by over two-thirds. In a recent OPEC meeting, it was decided to keep oil output levels unchanged, aiming to curb shale production in the U.S. This situation could force many American shale companies to shut down, resulting in significant job losses and potentially triggering a market selloff.

Additionally, geopolitical issues are adding to the tension. The growing threat of terrorism, with groups like ISIS expanding their reach, has led to more U.S. troops being deployed under orders from President Barack Obama. The ongoing conflict between Russia and Ukraine over Crimea and the Western sanctions on Russia further complicate the geopolitical landscape.

How to Start a Precious Metals IRA

As we’ve discussed, precious metals can be a good hedge against market downturns. Setting up a precious metals IRA is easy and can be done in three simple steps at Lear Capital. Here’s how you can get started:

1. Open an account with a well-regarded broker like Goldco Precious Metals.
2. Once your account is set up, make your initial deposit.
3. Work with your broker to create an investment plan for future growth.

Besides IRAs, there are numerous other ways to invest in precious metals. It might be a good idea to talk to your financial advisor to explore how gold and other metals could serve as a buffer in your investment portfolio.