Gold IRA: Why Are They A Good Idea?
Ever since you’ve seriously considered investing, you’ve probably heard the phrase not just diversifying your stocks but your investments across all asset classes.
Today, you can purchase ounce quantities of gold or gold jewelry.
There are also collectible gold items, such as commemorative coins and silverware, which are considered commodities when made with precious metals.
If anything were to happen to cash, the assumption is that gold will always find room for value because it always has. Before banknotes or paper money, even before coinage in metal, there was gold as a means of payment and exchange. We must remember that today gold can also be sold for cash.
If you want to own this brilliant resource, but an ounce of gold is too expensive to buy, you can buy it by the gram and work your way up to owning an ounce. This is the best-kept secret for novice investors who think precious metals are out of reach.
Now is the right time to start if you still need to start fully funding your individual retirement account. You can use your IRA to invest in securities such as stocks and bonds, but you can also use your IRA as a hedge against inflation with investments in gold.
But first, let us understand the difference between IRs and IRAs.
Internal Revenue Service regulations prevent you from putting collectibles in your IRA. The IRS includes metals and coins on its prohibited investment list, stamps, carpets, antiques, artwork, and alcoholic beverages.
There are some exceptions to the “no metals and coins” rule. IRS rules and regulations specifically allow the IRA to hold U.S. gold coins minted by the Treasury Department and other gold coins and bars that meet established standards of purity.
Coins And Bars
You cannot put gold coins or bars you already own into your IRA. You can only fund your IRA with cash, so your IRA trustee can purchase approved gold coins or bars for your account.
It would be best if you found a gold IRA trustee willing to handle the acquisition and storage of precious metals for your IRA.
The IRS has approved many precious metals firms to act as IRA trustees, who can handle such transactions for you.
There is no IRS prohibition against holding stock in your IRA. If putting physical gold into your retirement account is too much of a hassle, you can still gain gold exposure by buying gold reserves. Gold stocks represent the ownership of companies that mine, process, refine or trade gold and other precious metals.
Mutual Funds And EFTs
You don’t need to be an investment pro to diversify your retirement portfolio. Investing in a gold mutual fund not only gives your IRA exposure to gold but it gives you instant diversification and professional management of your funds.
So, if you’re planning to start investing in precious metals and still can’t get down to gold, silver is a good option. Today, you can’t beat the price of silver compared to the value of precious metals.
Do your research, seek expert advice and find out if metals are suitable for you, and remember, there are no silly questions regarding your money and your future.