Buying gold in a gold IRA, sure, you can. But why would you?
How about this for a reason?
In 2001, an ounce of gold cost $ 271. Ten years later it reached $ 1,896; do the math, that’s an increase of almost 700%. This period was also, incidentally, one of the most stormy economic periods in recent history: banks collapsed and currencies trembled. While these calamities devastated other areas of the market, gold prospered. As strong winds blew from subprime mortgages, credit default swaps and other derivatives that even experts don’t understand, gold shone through it all. Googling “gold” and you’ll find a lot to talk about about gold’s reputation as the standard of wealth, original money, and a safe haven from economic turmoil.
Gold has been a storehouse of wealth for kings and empires for thousands of years. Gold and silver will protect your purchasing power; Unlike money, gold and silver cannot be printed or degraded. It is the true asset of nature.
Should I cash my IRA and buy gold?
If you are looking for security and stability in your retirement portfolio, the answer is yes.
In a self-directed gold IRA, Roth IRA, or 401 (k) plan, you can buy gold or silver coins or bullion. Retirement plans generally offer traditional IRAs or 401 (k) that hold stocks, mutual funds, annuities, or other assets. Most of the time, investors have little or no say in the investments that are made. With a self-directed plan, the holder is empowered to make his own investment decisions and, if he so wishes, to expand the investment options available. Precious metals may be among those options.
The investor begins by rolling over his traditional IRA. Current law allows both IRA transfers and transfers from other qualified retirement plans.
How to buy physical gold and silver in an IRA
Investing in gold or silver in an IRA can be as simple as renewing your account as you would any paper investment. The transaction is fast and its characteristics make precious metals a perfect investment. In fact, using a self-directed gold IRA purchase is one of the most tax efficient ways to finance your gold / silver purchase.
Gold or silver?
We have talked about the virtues of gold, what about silver?
Silver is used in a growing number of industrial applications that will only increase with the development of new technologies: smartphones, tablets, televisions and solar cells are in high demand for silver use. More even than gold, the amounts of silver available are limited, and unless you believe that demand for high-tech is declining, there can only be one way for silver prices to go.
From 2008 to 2010, silver enjoyed an uptrend of $ 16 per troy ounce and soared to a peak of $ 48.70, an increase of more than 300%! Historical records for the last 15 years show that silver has always held a reasonably strong position in the market because traders know that precious metals are a safe haven because some of them can be used as legal tender.
Coins or bullion?
Bullion is easily stored and transported as you can stack bars produced by the mint itself. Bullion also has the lowest premium over the spot price for both gold and silver. On the other hand, unlike coins, the generic bars produced by regular mints do not offer any “collectibility” factor. Also, larger bars (10 oz gold bars or 100 oz silver bars) can be more difficult to trade in a crisis than smaller bars.
For their part, coins offer a collectability factor that bars and rounds do not. In a pinch, coins, such as Silver Eagles or American Gold Buffalos, can also be considered legal tender (although it would be foolish to spend legal tender coins as they are worth so much more than metal).
Again, your choice depends on your individual financial goals and circumstances.
Start protecting your wealth today
For more information on how to invest in gold and silver and how these precious metals can help you increase your wealth even in the most uncertain economic times, download our FREE mini-course “How To Invest Your IRA In Gold And Get Rid Of Financial Worries For Good.” “This powerful course could save you thousands of dollars and is filled with the expert tips and advice you need to make the best possible decisions for yourself.
With the current economic uncertainty, adding gold or silver to your portfolio could be your best diversification strategy, serving as a possible hedge against inflation and the falling dollar. Protect yourself today.
