What’s the best way to protect and grow your wealth? Well, according to many investment gurus, it’s portfolio diversification. But diversification doesn’t just mean buying a broad range of stocks and paper assets: What will happen when stocks plummet? Though they may be riding high now, how long do you think this bubble will last?
So, if simply buying more stocks isn’t the best way diversify, what is?
Gold.
Among the usual mix of stocks, bonds, etc., a truly diverse portfolio should also include some portion of gold. Experts agree, there is no better hedge against falling stock prices and rising inflation than owning physical gold within a gold IRA.
Actually, now is a good time as many experts believe gold’s price is undervalued. There’s been a recent spate of “safe haven” buying from investors who are worried about losing value in a volatile stock market. In times like these, when Wall Street finds itself becoming more risk averse, gold gets a boost. This is the reason that gold has been considered a reliable store of wealth for over five thousand years. Other events including the holding of interest rates by the Federal Reserve and seasonal demand also have a positive effect on gold’s value. But even with these factors aside, gold has still proven itself to be one of the best performing commodities of 2014.
Owning gold with a self-directed IRA is not the same as owning mutual funds or ETFs. With a self-directed gold account, the investor can actually buy and hold physical gold inside their IRA. Owning physical metals such as gold or silver can be an important part of a well-diversified retirement portfolio.
A self-directed IRA enables the individual to invest in gold and much more on a tax-deferred or tax-free basis. This prospect is exciting for many investors because the investment involves a tangible and finite resource with real intrinsic value. Gold and silver are by far the most popular choices for Precious Metals IRAs. An IRA can purchase gold and silver coins such as American Eagles or Canadian Maple Leafs, some coins from Australia and Austria, or physical bullion in the shape of bars or rounds. (The South African Krugerrand is not permitted to be included in an IRA as it is a 22 karat bullion coin.) Only gold coins with a purity of 24 karat (0.995+ fineness) are allowed in an IRA, with the exception of the 22 karat US Gold Eagle. Any metals owned inside of a precious metals IRA must meet certain fineness requirements and must be produced by an approved and accredited refiner.
One of the big differences between bars and coins is that when you sell coins you’ll typically get a few dollars over melt value, or market value. With bars on the other hand, depending on the bar type, you get a straight spot price or melt value on a buyback. It’s for this reason that most experts recommend purchasing coins instead of bars. Because of their additional numismatic value, coins are generally seen as the more profitable choice. In many instances, if you were looking to liquidate with large bars you’ll not be able to liquidate part of the bar, you will have to liquidate the entire bar at once. That’s why when it comes to liquidation it also makes sense to have coins in your possession instead of bars.
This article was written to answer basic questions about investing in a self-directed IRA. To learn much more about investing in gold and silver and how you can grow and diversify your wealth even in the most uncertain and volatile of economic times, a special mini-course was developed. It’s entitled “The Essential Guide to Successful Gold and Silver Investing” and it’s available for FREE download. This valuable course is filled with tips and expert advice to help you make the decisions that could save you thousands of dollars.
Don’t leave your investments to the mercy of an unpredictable market. Learn about the various ways you can protect your retirement with the purchase of gold or silver.
