This has been by far the busiest month for the precious metals IRA portion of our business. As a longtime national gold and silver bullion dealer, we have offered precious metals IRAs since our inception. In the last month, we have helped our clients to open more precious metals IRA accounts than we have in any month since we have been in business.
The significant price drop in gold, when 22 tonnes of gold was sold Monday in the early morning market, has provided an opportuity to purchase physical gold bullion at record low prices. Will the price go lower? Perhaps, but with a long-term mindset that one should have with a retirement account, these prices only provide greater appreciation with the longterm outlook for gold to rise much higher in price, even accounting for additional decrease in the price. The same can be said of silver bullion as well, and many believe the upside for silver is even greater than that of gold due to the percentage increase that can be gained on a lower price per ounce.
Some say prices may decrease further, but on the otherhand, many national precious metals experts are predicting that gold is preparing for a resurgence right around the corner. The one thing we never do is play the price prediction game – one will almost always fail in doing so. Instead, we counsel our clients to buy as we buy personally, in modest amounts at varying price points over time. It is quite simply the easiest way to dollar cost average your gold and silver bullion purchases. This also applies to bullion that you put in your IRA account.
Precious metals sentiment is overwhelmingly bearish and that is actually a positive sign. One must know that the June to August timeframe is the worst period for gold and it is usually when you see the true lows for the year. Physical buying is still robust, both in the US and globally. The Indian wedding season runs from November through December and this is when the most physical gold buying occurs. Add to this the fact that the lower prices will drive more mining companies out of business and we can expect shrinking production. All of these factors will play to a more bullish trend for gold and silver.
In the end we expect further increases in physical demand, with an opportunity presented today to buy at lower prices. Initiate your precious metals IRA today and add incrementally to your account over time.