Benefit from a Gold IRA Review
Michael Hughes- A self-directed IRA provides more flexibility than a traditional IRA.
- With gold prices currently rising, it could be a good time to invest in gold using a self-directed IRA.
- An IRA is a tax-advantaged retirement account for retirement savings.
The precious metal gold has proven to be a reliable investment over the years. Gold held its value during the 2008 recession, when the U.S. stock market fell nearly 50%.
Gold isn't the only precious metal, but it is the most widely recognized and commonly traded. In 2018, gold was the top traded commodity, accounting for 28.6% of the global commodity market. The United States is the world's largest gold consumer, with 704.5 tons in 2017.
Here are the advantages of investing in gold through a self-directed IRA, also known as a self-administered IRA.
What is a Gold IRA?
A Gold IRA is a type of Individual Retirement Account (IRA) that is devoted to investment in gold. A Gold IRA functions similarly to a regular IRA, but allows you to invest in physical gold, which doesn't go up and down with the stock market.
You can invest in gold through a Gold IRA with virtually any type of gold product. The most common types of gold products that are used for IRAs are coins and bullion.
Do Gold IRAs Offer Protection?
Yes! Gold IRAs offer protection in several ways. First, the precious metals are a tangible asset, whereas equities are intangible. Second, most Gold IRA custodians offer insurance for the accounts, which protects them from theft and damage. Third, the precious metals have intrinsic value, which means their value is not determined by supply and demand.
How Do You Purchase Gold in a Gold IRA?
A self-directed IRA can invest in most precious metals, including gold, silver, platinum, palladium, and rhodium. These metals can also be part of an IRA's asset allocation, but gold is the most common option.
There are a few ways to purchase gold with a self-directed IRA.
What Tax Advantages Does a Gold IRA Offer?
A Gold IRA, or a Gold Individual Retirement Account (IRA), is a tax-advantaged account that allows investors to gain exposure to physical gold without incurring taxes on capital gains. With a Gold IRA, investors own gold that is stored in an IRS-approved depository, rather than owning gold coins or bullion. Gold IRAs work similarly to traditional IRAs and 401(k) plans.
Are Gold IRAs Safe?
Gold has often been considered a safe haven asset. Gold, along with other precious metals, can help protect your portfolio against inflation.
Gold is usually considered one of the safest and most reliable investment assets. A Gold IRA can help protect and grow your retirement investments.
Gold IRA: Should You Open One To Save For Retirement?
The Bottom Line
Investing in precious metals like gold, silver, platinum and diamonds is a smart move and a great way to diversify your portfolio. But investors should carefully consider their options before investing in a physical precious metals IRA. A precious metals IRA review can help investors learn the ins and outs of their options so they can make an informed decision.
