At one time gold was used in the United States currency
. It was pulled out of the currency in the early 1970s. Gold's main use today is in investments and jewelry.
The current American currency is decreasing in value over time. The American dollar buys less and less every year. The value of gold has actually increased in value.
Various investments are decreasing in value as well. These options like stocks and bonds are linked with the value of the American dollar. At the beginning of the current inflation, even the real estate market went down in price.
The big problem is that there is too much paper money being printed and not enough reserves to back up the value of them. More and more money keeps getting printed in an effort to keep everyone a float during the inflation. This can make investing risky and scary for individuals.
Some individuals are investing in gold. They are even doing it through their self directed IRA. They are doing this because it is a safe investment option during a time of inflation.
Only certain types of gold qualify into a self directed IRA. There are specifications to help individuals know what does and does not qualify as an investment in the IRA. There are coins or bullions outlines that are both from the United States and other foreign countries.
Gold currently gives a nice profit. It is estimated that the future value of gold will increase dramatically and driving up profits as well. This is based on the idea that the demand for gold will increase.
It is based off of the pattern of the central banks. Many of them use to sell gold, but have stopped. It is estimated that they will actually turn around and need to buy gold. This is why gold is an excellent investment option in a self directed IRA.