Why Invest in Gold IRA?

Why Invest in Gold IRA?
Coins

An investor always wonders whether he/she has made the right decision. In this article I will analyze the importance of a gold IRA investment and why invest in a gold IRA. All financial experts have one basic rule and they always follow it. Never put all eggs in one basket. And a self-directed gold IRA is the investment that will definitely ensure your eggs are not all in one basket.

What is Gold IRA Investment

A gold IRA investment is an individual retirement account, an account that functions the same way as a regular IRA account however, instead of holding paper assets, it holds physical bullion coins or bars.

Gold Could Save your IRA

You may regret if you choose a conventional IRA or 401(k) investment with a bank or brokerage firm. The oncoming financial crisis is expected to decimate traditional investment assets. Stocks, bonds, and so on will see their prices drop substantially. That means your, life savings could perish overnight and in the end, there won’t be enough savings for you to retire.

Since most IRA accounts are invested in traditional assets, and since all these assets move downwards or upwards together, (correlated assets) there must be another asset that does the opposite.

On the other side gold is a non-correlated asset. (an asset whose value isn’t tied to larger fluctuations in the traditional market) In fact, gold always does well in times of crisis. Call it a financial crisis, recession, geopolitical tensions, war, covid-19, trade war, whatever the case is, gold not only maintains its value but also sees significant gains.

Black Monday1987 Iraq-Kuwait War1990 Dot Com Crash2001 Financial Crisis2008
Stock Market Decline -38.9 -22.5 -27% -34%
Gold Price Results +5% +7.5% +1% +5%
Gold Outperformed Stocks By Ratio 45:1 31:1 29:1 40:1

More Reasons for a Gold IRA

1-Diversification. There is no doubt that IRAs are suited for portfolio diversification in case, economic and world news cause another drop in the stock market.

2-Protects your investment from inflation. Gold is a hedge against inflation. During the years of the highest inflation after world war 2 (1946, 1974, 1975, 1979, 1980), the average real return of the Dow Jones Industrial Average was -13,33% compared to 130,5% for gold. Now in 2020, we expect inflation to come back. The never-ending money printing by the Fed and the ECB’s stimulus program will trigger a worldwide interest rates explosion.

3-Gold is a tangible asset. Traditional investing is putting money in the stock market, buying certificates of deposit, or buying bonds. These are not tangible assets. In fact, it could take time for you to convert these investments into cash. For example, if you invest in CDs or bonds you may have to wait for a number of years before you receive a return. If you want to terminate your CDs investment and wish to withdraw early, you might have to pay a penalty. This is not the case with gold or silver as you can convert your coins or bars into cash immediately, as the demand for precious metals is constant.

4-Increasing demand for gold and silver industrial use. Both precious metals have a growing demand for industrial use. In particular, they are used in smartphones, computers, medicine, and nanotechnology. And if we consider the massive precious metals demand for jewelry, only then we get the full picture.

5-Gold is not a claim on someone else’s liability. Gold has never lost its value for mismanagement, corruption, theft, war, etc. Stocks have. Also, there has never been and never be a haircut to gold as it’s been happening with debts and savings.

6-Geopolitical uncertainty. Geopolitical tensions are growing, the Middle East is still in turmoil. Syria and Iran are under Russian control, and the United States have lost their credibility. Hong Kong tensions never stop, Brexit deal, and North Korea continues to upset with its unruly behavior.

7-The US-China trade war. There is no doubt the trade war between the two superpowers has interrupted the markets and global economy. The uncertainty these actions cause is good news for gold.

8-The weak dollar. Gold moves in the opposite direction of the American dollar and the dollar have never been weaker. The never-ending money printing will cause the dollar to continue its downward trend. I am afraid the US dollar will be weak for a long time.

9-The covid-19 caused crisis. The coronavirus has caused an unprecedented financial and economic crisis. The impact of the crisis on the global economy is still unknown. However, what we know is that the economic downturn in Western economies during the second and the third quarters of the year will be between at least -15%.

A traditional IRA fund consists of traditional assets. But when you open a self-directed IRA, you are empowered to make your future secure after retirement. The experts will help you to make investment decisions and choose a precious metal coin, bullion, and bars to invest in.

Why Invest in Gold IRA?Choosing the Right Gold IRA Company

A traditional IRA fund consists of traditional assets. But when you open a self-directed IRA, you are empowered to make your future secure after retirement. The experts will help you to make investment decisions and choose a precious metal coin, bullion, and bars to invest in.

Choosing a gold IRA company could be a headache. A gold IRA company that respects itself and its clients should not take more than seven days to complete processing and shipping. It should also offer segregated gold storage, a low fee policy, and a buyback program.

Remember these people will have to handle your savings, therefore they must have a proven track record, and a reputation to follow.

More Gold IRA Benefits

  • Tax Benefits
  • Flexibility & Freedom
  • Investment Diversification
  • Great Growth Potential
  • Portfolio Protection from Unexpected Events

Final Words

There is no doubt that we are going through uncertain times. There is an unprecedented economic crisis on the way. Businesses are already closing, the stock market is overvalued and expected to suffer heavy losses, the coronavirus is here to stay and the vaccine will not be available till March or April 2021.

In addition, unemployment is rising and there is social unrest in the community. People are angry because of the economic uncertainty and they do not trust politicians.

A gold IRA is the right investment now. It will ensure that your savings will not perish overnight due to the oncoming crisis.

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How to Invest in a Gold IRA

Introduction

How to Invest in a Gold IRA
Gold Bars

Gold is a precious metal that has been used in the past as money. Many wealthy families invest their wealth into gold, to preserve it as gold always held its value and it was considered as good as money. Nowadays, investing in a gold IRA is a must. In this article, I will show you how to invest in a gold IRA.

What is a Gold IRA?

A gold IRA is an individual retirement account, an account that functions the same way as a regular IRA account however, instead of holding paper assets, it holds physical bullion coins or bars.

Why Invest in a Gold IRA?

There are several reasons to include gold in an IRA account, some of them are:

  • To protect and preserve wealth from unexpected events. Covid-19 is the best example here.
  • A hedge when the stock market is not expected to do well. For several months there has been a stock market downturn. Thus, most investors have seen their life savings decimated. However, those who had their savings invested in gold are walking the streets with big smiles on their faces.
  • Portfolio diversification. It is not prudent to put all eggs into one basket. A smart investor always spreads his/her savings into different types of investments that are not connected. (Bonds, real estate, stocks, precious metals, and so on.)
  • The weak dollar. I am afraid the dollar will continue to lose strength. Although the decision by the government to print trillions of dollars is the right decision, it will ultimately cripple the dollar’s price.
  • Loss of confidence in central banks. Over the years governments and dirty politicians manipulated central bank policies. In addition, central bankers just watched them without doing anything about it.
  • Geopolitical uncertainty. (Middle East, Brexit, ISIS, North Korea, Hong Kong.) Even though ISIS has lost ground, it is still around. The middle East is in turmoil, North Korea has started creating trouble again, Brexit is postponed and in Hong Kong, the conflict is back.
  • The US-China trade war. The US-China trade war is not over yet. In fact, it is turning out to a financial war between the two superpowers
  • Gold has never lost its value due to war, mismanagement, corruption, theft, inflation, economic and financial crisis, while stocks have.
  • Gold is a tangible asset that can be converted to cash easily.
  • Low or negative interest rates. Most central banks around the world have adopted a negative interest rate policy. That means, your dollar is losing value every single day.

Steps Needed to Invest in a Gold IRA

1-Set Financial Goals for Your Future

It is important for all of us to establish financial goals for our retirement. In my case, am not willing to restrain myself in a lifestyle totally depending on welfare or a small pension. Nobody wants that.

To plan for the future you need to know where you are today, where you want to be, how you are going to get there, and how much is going to cost you. Nothing is free in life.

Your retirement plans could change over time, as your income and knowledge grow. Thus, your plans will need to be flexible in order to adapt to these changes.

2- Choose Between a Rollover, a Transfer, or a Fresh Start?

Once you’ve established your retirement goals, you will have to decide what is better for you. A fund transfer, a fund rollover, or a fresh start with an entirely new Self Directed IRA account.

A rollover is when the money is moved from the current IRA account, perhaps to an account that offers more benefits security, and flexibility, is paid directly to you and you will have to deposit the money in the account that you want. Be cautious there, you will have two months to transfer the funds otherwise your funds will be taxed by the IRS.

A transfer is when the custodian transfers the money directly to the new custodian. In this case, you never see the money and there is no reason for the IRS to tax you as the funds are never made payable to you.

A new Self Directed IRA is also another option. You do not have to close your existing IRA account. In fact, the IRS allows for several IRA accounts as long as your combined contributions do not exceed the annual limit set by the IRS. The process is fast and easy, and your IRA Account specialist will be there to help you every step of the way.

3-Find a Custodian

To have your funds invested in physical gold or other precious metals, the IRS requires you to open an account with an approved custodian. Therefore, you will have to make your own research to find and choose which custodian you want to deal with.

This could be a headache for the ordinary folk but, companies such as Regal Assets are already dealing with the most reputable custodians and can actually take care of that on your behalf. They will actually set up your IRA account and coordinate with your current custodian to transfer the funds.

4-Safe Bullion Storage

According to IRS regulations, you cannot store your IRA precious metals bullion at home. It must be stored in a reputable precious metals storage facility. A precious metals storage facility or depository is a third party that specializes in precious metal security. You can always visit to see and hold your assets at the depository, but as long as they are held in the IRA you cannot take them home.

Regal Assets will organize the discreet transfer and safekeeping of your gold IRA in a depository on your behalf. In fact, Regal Assets partnership with Brinks will offer you segregated storage in several depositories in North America and Singapore.

5-Relax Your Savings are Safe

Once the whole process is finalized you will not have to worry about geopolitical uncertainties, trade wars, financial turmoil, or even the price of the dollar. In addition, a self-directed IRA gives you the flexibility to continue investing in other areas such as real estate or stocks.

Traps to Avoid

How to Invest in a Gold IRA
Roadsign

Every time there is an issue that involves your hard-earned money, you must be diligent. Fortunately, when it comes to IRA investing, the rules and regulations set by the IRS are strict and there is little room left for any mishaps.

Nonetheless, there have been cases where investors were scammed or cases where due to mistakes, cost investors a great deal of money.

1-Not all gold coins are IRS approved for an IRA account. If you happen to purchase the wrong precious metals coins your IRS account will not be valid. You will have to sell them back and then purchase the IRS approved coins. In the end, this will cost the investor money. To see what coins are approved by the IRS press here.

2-A rollover situation could also cost the investor a great deal of money if he/she takes over the two months limit to place the funds in the new IRA account. In that case, the IRS will impose taxes on the funds which the investor will have to pay.

3-Overpriced costs. The investor should check charges such as storage fees, shipping costs, administrative fees, and storage conditions. Some companies have a high fee policy for no particular reason whatsoever. They could be annual storage and administration fees and the shipping costs could be huge. These annual fees vary from broker to broker but, they all add up year after year.

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The easiest way to avoid traps is to deal with a reputable gold IRA broker. A broker who’s been around for a number of years with tons of experience has earned the respect and trust of its clients.

How to Choose the Right Gold IRA Company

When it comes to choosing the right gold IRA company one must consider the following:

1-Check out the comments regarding the firm, especially the complaints, see how these complaints were handled. If there is a long list of complaints, that will be a sign to worry about. Also, take a look at the number of years the company operates, you want ten years of solid record. Finally, most important is to choose a firm with a commitment to keeping you informed. Keeping you informed now and in the future. If a salesperson gives you short shrift or hits you with a high sales pitch, consider this bad news.

Final Words

If you are seeking peace of mind, security, and protection from unexpected events then, a gold IRA could be the solution. Keep in mind, the stock-market downturn has cost trillions of dollars in the last few months.

Consider this, if you had purchased $33,000 of gold in 2001, you could sell that gold today for around $129,551.12 That’s over 300% return on investment! Has your current retirement account performed as well as a Gold IRA would have?

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What is IRA Approved Gold?

What is IRA Approved Gold?

What is IRA Approved Gold?

When it comes to investing in IRA coins or bullion, not all coins or bullion are approved. That’s because the IRS has placed strict purity rules and requirements and rightly so. Therefore, all coins and bullion approved, are those who meet the strict IRA rules. The IRA approved gold, should have a purity grade of at least 0,995, for silver 0,999, for platinum 0,9995 and 0,9995 for palladium.

Gold IRA approved

  • 1-American gold eagle coins
  • 2-American gold buffalo coins
  • 3-Australian gold kangaroo nugget/coins
  • 4-Austrian gold philharmonic coins
  • 5-Canadian gold maple leaf coins
  • 6-Credit Suisse golden bars
  • 7-Johnson Matthey gold bar
  • 8-Valcambi gold combi bar

Silver IRA approved

  • 1-American silver eagle coins
  • 2-Australian kookabarra silver coins
  • 3-Austrian Philharmonic silver coin
  • 4-Canadian silver maple leaf coins
  • 5-Mexican silver libertad coins
  • 6-Johnson Matthey silver bar
  • 7-Royal Canadian silver bar

Platinum IRA approved

  • 1-American eagle platinum coins
  • 2-Australian koala platinum coins
  • 3-Canadian maple leaf platinum coins
  • 4-Isle of man noble coins.

Palladium IRA approved

  • 1-Canadian palladium maple leaf coins
  • 2-Russian ballerina palladium coins
  • 3-Baird palladium bars
  • 4-Credit Suisse palladium bars.

Gold must be stored in an IRS approved depository. In particular, investors do not have to stash gold bars or coins in their homes or closets.

Reasons to Invest in Gold and Silver

There are several reasons to invest in gold. The most important are:

  •  To protect and preserve wealth from unexpected events.
  •  A hedge when the stock market is not expected to do well.
  •  Portfolio diversification.
  •  The weak dollar
  •  Loss of confidense in central banks
  •  Geopolitical uncertainty (Middle East, Brexit, ISIS, North Korea, Hong Kong.)
  •  The US China trade war.
  • The covid-19 triggered recession

Should I Include Gold in my Retirement Plan?

Gold is the type of investment that can protect when times are hard and at the same time will also offer significant gains to your nest egg.  Back in 2001, an ounce of gold cost $271,00.  Ten years later it reached $1896,00, an increase of almost 700%.   During that time, banks and currencies collapsed, the real estate market collapsed, but the price of gold didn’t.  In particular gold fed from these calamities, it was the rediscovered idol, in the time when everything else collapsed, from mortgages, stocks, credit default swaps, and derivative products, all was too complicated to even understand.

As you can see, a standard IRA, an IRA invested totally in stocks bonds and other funds, is actually putting your hard earned money at risk.  You are relying on government, weak currencies, economies and large corporations.  Gold and silver can actually safeguard your investment.

Conclusion

Investing in a gold-precious-metals IRA requires certain experties. A small mistake could cost thousands of dollars.
Before making a major investment decision it is a good idea to read reviews, do your own research and consult a professional that can guide you with any questions you might have.

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