- Precious metals investors have a number of options for investing in gold and silver, including coins, bullion bars and coins, and bullion exchange-traded funds (ETFs).
- Gold and silver bullion coins and bars can be purchased from dealers, and precious metals ETFs are bought and sold like any other stock and ETF.
- Another bullion investment option that is often overlooked is the Cornerstone Bullion IRA, which is offered by First American Bullion, a subsidiary of First American Bank.
- This IRA is particularly attractive for investors seeking maximum tax advantages.
Precious metals investors have a number of options for investing in gold and silver, including coins, bullion bars and coins, and bullion exchange-traded funds (ETFs). Gold and silver bullion coins and bars can be purchased from dealers, and precious metals ETFs are bought and sold like any other stock and ETF. Another bullion investment option that is often overlooked is the Cornerstone Bullion IRA, which is offered by First American Bullion, a subsidiary of First American Bank. This IRA is particularly attractive for investors seeking maximum tax advantages.
Types of Cornerstone Bullion IRAs
There are four types of Cornerstone Bullion IRAs:
Traditional IRA: A Traditional IRA offers tax-deferred growth, and contributions may be tax-deductible depending on your individual tax situation. The tax-deferred growth may help your retirement nest egg grow at a faster rate than non-IRA investments.
Roth IRA: A Roth IRA is similar to the Traditional IRA, except that the contributions are made with after-tax dollars. You don’t receive any tax deduction on the contributions, but qualified distributions are tax-free.
Rollover IRA: A Traditional IRA that is moved directly from one account to another.
Self-Directed IRA: A Self-Directed IRA allows you to invest in alternative assets, including precious metals.
Investment Companies
One of the most secure ways to invest in precious metals is to buy shares in a precious metals fund. These funds allow investors to take positions in a wide variety of precious metals without having to own physical metal.
Funds invest in precious metals by buying coins, bullion, and other precious metals products. These funds offer an easy way to own silver, gold, platinum, palladium, and other precious metals.
Advantages of investing in these funds include the following:
Precious metals funds offer liquidity. Investors can buy and sell shares with relative ease.
Precious metals funds offer diversification. Investors can buy silver, gold, platinum, palladium, and other precious metals in a single fund.
Precious metals funds offer investment advantages. Unlike investing in physical metals, investors avoid paying storage fees, insurance fees, and tax penalties.
Precious metals funds offer higher returns than gold bullion.
Gold and Silver Bullion
Gold and silver bullion offer investors a way to invest in precious metals without the administrative hassle of buying and storing physical metals.
Benefits of investing in gold and silver bullion include the following:
Investing in gold and silver bullion offer investors a way to invest in precious metals without the administrative hassle of buying and storing physical metals.
Investing in gold and silver bullion offer investors a way to diversify their portfolios.
Investing in gold and silver bullion offer investors a way to secure their retirements.
Cornerstone Bullion IRAs vs. Traditional IRAs
Regardless of whether you purchase gold and silver bullion through an IRA, the tax benefits of precious metals investing are the same. Gold and silver bullion IRAs have the following advantages over traditional IRAs:
Higher contribution limits. With a Gold IRA, you can contribute to a precious metals IRA up to $200,000 per year. With a traditional IRA, you can only contribute up to $6,000 per year.
More tax-sheltering power. Precious metals IRAs allow you to defer taxes on investment gains until withdrawal, whereas traditional IRAs have early withdrawal penalties.
Self-directed IRAs. With traditional IRAs, you are limited to a range of pre-approved investments. With a Gold IRA, you are the sole owner of your investments.