The Benefits Of Investing Gold In Your RRSP

During these turbulent financial times, it is now more important than ever to make smart decisions regarding your financial future. Unfortunately, a lot of people rely solely on the stock market as an investment vehicle, but the past few stock market crashes have shown us how easy it is to lose everything when stocks go bust.

As a hedge against the unpredictability in the stock markets, the brightest minds are investing in gold because it preserves wealth and increases in value when stocks and other investments head toward 0. That’s why Canada’s top investors, those who make their living following global and local market trends, strongly advise people to invest gold in their Canadian RRSP, to ensure a healthy future.

The economy works in cycles – during the downturn of the last cycle, we saw a lot of people lose their shirts, including a lot of elderly people who worked hard for their money and invested diligently, who saw their money and financial security evaporate. Some retirees had to return to work and others who were close to retirement had to postpone and continue working because of the loss of value in their portfolio.

As regrettable as this is, it could have been avoided by not being overly reliant on the stock market. Everybody deserves to cross that finish line and build the strongest Canadian RRSP possible so you can retire comfortably and on time, which is why you should invest in gold. Its ability to mitigate the losses felt elsewhere in a portfolio makes it an invaluable facet of any strong RRSP. And it really isn’t as difficult or as bureaucratically confusing as many might think to invest gold into an RRSP, only requiring that you open a registered RRSP bullion account with an accredited company, and you can start building a strong, resilient and gainful RRSP.

A stock market crash or recession is inevitable, as has been demonstrated countless time throughout history, and it is not a matter of “if,” but “when.” And when everything comes crashing down to earth, you can either be holding a steaming hot pile of stocks that have lost 60% of their value, or you can be holding a proven precious metal that is skyrocketing in value.

It is also better to be early than late. When tough economic times come and everyone else is trying to rush into gold, it is better to already be in and make a lot of money by having the foresight to make a smart investing decision. Nothing preserves wealth quite like gold, and whereas stock market dips cause panic in others, those holding gold will be laughing, since gold’s negative correlation to the market means that they’re actually making money.

Every Canadian RRSP should be balanced with some gold holdings, and those that are not are naked and exposed to the unpredictability in the stock markets. When you work so hard for your money, you should work just as hard to keep it. Tough times will come, so it’s urgent that strike while the iron is hot – or in this case, the gold is hot!

Post Author: Marilyn Avilla