Discover the Best Precious Metals IRA Available
James Lawson- Precious metals IRAs allow investors to shelter their savings from the whims of the stock market and diversify their portfolios with precious metals.
- Precious metals IRAs are similar to traditional IRAs, but they allow investors to purchase physical gold and silver.
- Unlike traditional IRAs, once an investor buys gold or silver, it's not subject to the fluctuations of the stock market.
Precious metals IRAs allow investors to shelter their savings from the whims of the stock market and diversify their portfolios with precious metals. Precious metals IRAs are similar to traditional IRAs, but they allow investors to purchase physical gold and silver. Unlike traditional IRAs, once an investor buys gold or silver, it's no longer subject to the fluctuations of the stock market.
What Types of Precious Metals Are Available?
Most precious metal IRA companies carry a broad selection of gold, silver and platinum bullion products. The metals they offer include:
Gold bars and coins: These come in various sizes (each of which has a different weight, which affects the cost per ounce). Gold bars and coins that are sold through an IRA company come in 1-ounce, 5-ounce, 10-ounce, 1-kilogram, and 32.15-kilogram sizes.
Silver bars and coins: Silver bars and coins come in 1-ounce, 5-ounce, 10-ounce, 1-kilogram, and 32.15-kilogram sizes.
Platinum bars and coins: Platinum bars and coins come in 1-ounce, 5-ounce, 10-ounce, 1-kilogram, and 32.15-kilogram sizes.
Platinum and palladium bars and coins: Some precious metal IRA companies include platinum and palladium bars that can cost around $300 per ounce and $1,200 per ounce, respectively.
Which Precious Metals Should You Choose?
Choose a precious metals IRA company based on the type of metal you choose. For example, if you want gold, choose a company with a broad selection of gold bars and coins. Some IRA companies only sell gold coins or bars, while others only sell silver, platinum or palladium.
Gold
Gold is the most popular precious metal for IRAs because of its liquidity, yet under current market conditions, gold is still relatively expensive for IRA investors. The price of gold has appreciated over 300% in the past decade. Gold prices have doubled during 2018. At $1,416.10 per ounce as of October 15, 2018, gold has appreciated 14.9% year-to-date, according to Kitco.
The price of gold has grown about 10% per year since 2000. Although gold has outperformed other asset classes over long periods, its price has tended to move in lockstep with other asset classes. For example, when stocks fall, the price of gold tends to rise and when stocks rise, the price of gold tends to fall.
Silver
Silver has the smallest market capitalization of the three precious metals. Silver prices have appreciated 140% in the past decade. Silver prices have appreciated about 9.3% year-to-date. The price of silver has doubled during 2018. At $14.72 per ounce as of October 15, 2018, silver has appreciated 15.5% year-to-date, according to Kitco.
The price of silver has grown about 14% per year since 2000. Like gold, silver tends to move in lockstep with other asset classes.
Platinum
Platinum is the most expensive precious metal for IRAs. The price of platinum has appreciated 150% in the past decade, but platinum prices have appreciated about 11.6% year-to-date. The price of platinum has doubled during 2018. At $898.10 per ounce as of October 15, 2018, platinum has appreciated 14.9% year-to-date, according to Kitco.
The price of platinum has grown about 14% per year since 2000. Like the other precious metals, platinum tends to move in lockstep with other asset classes.
Silver
Silver has long been considered one of the most trustworthy forms of money and has become one of the most popular forms of investment.
It's also been used as a hedge against inflation and has shown significant price stability throughout time. Silver offers investors the ability to hold precious metals in their IRA and reap the benefits of holding physical precious metals.
Currently, silver is trading around the $14.60 level, up from its recent lows of $13.82. Investors can expect silver to remain relatively stable over the short term, but long-term investors can expect to see strong growth.
Gold
Gold is, by far, the most popular precious metal to invest in. It's considered a safe haven and retains value even when economic conditions are unfavorable.
Gold has traditionally retained its value and shown little to no volatility over long periods of time. Historically, the price of gold has tended to increase when the stock market suffers and fall when the stock market experiences growth.
It's currently trading around the $1,525 level, up from a recent low of $1,452. Gold is currently the second most popular precious metal in the U.S. after silver, and it's expected to remain relatively stable over the next couple of months.
Platinum
Platinum is another popular precious metal that has enjoyed a significant increase in price over the past couple of years. As demand has increased, the price has followed suit.
Platinum is often used to store wealth because of its durability and resistance to corrosion. It's also considered to be an excellent hedge against inflation.
Currently, platinum is trading around the $1,673 level, up from a recent low of $1,382.
Platinum
Platinum is a precious metal that is valued for its scarcity and its beauty. The metal has an industrial metal use and is a chemical element with symbol Pt and atomic number 78.
The metal is mined in South Africa, Australia, Russia, South America, and Canada. Palladium is traded on the London and New York Commodity Exchanges.
Palladium
The palladium price has continued to climb recently, passing the $1,000 per ounce mark for the first time in 2019. Palladium is a precious metal that generally reflects the performance of the global auto industry, and its performance is a strong indicator of the health of the overall economy.
Recent growth has pushed the palladium price past stocks like Apple Inc. (AAPL), which outperformed the precious metal this year. However, palladium also outperformed stocks like Amazon Inc. (AMZN) and Netflix Inc. (NFLX) last year, demonstrating its broad appeal.
Many investors consider palladium a more stable asset than gold or silver, as it trades at lower levels and tends to be less volatile.
Where to Invest Your Precious Metals
Gold Bullion
Gold bars, also called ingots or bullion, are minted into round discs of metal that weigh troy ounces. Gold bullion coins are popular because of their low premiums over spot prices. These are minted by governments and come in different sizes and denominations.
Silver Bullion
Silver bullion coins, also called silver eagles, are minted into round discs of metal that weigh troy ounces. Silver bullion is also purchased as rounds and bars. Silver is typically cheaper than gold per ounce.
Platinum Bullion
Platinum bullion coins, also called platinum eagles, are minted into round discs of metal that weigh troy ounces. Platinum bullion coins are popular because of their low premiums over spot prices.
Palladium Bullion
Palladium bullion coins, also called palladium eagles, are minted into round discs of metal that weigh troy ounces. Palladium bullion coins are popular because of their low premiums over spot prices.
Other Precious Metals
Other precious metals include copper, palladium, and rhodium bullion.
Gold IRA: Should You Open One To Save For Retirement?
The Bottom Line
Precious metals like gold and silver have outperformed stocks and bonds in recent years, and, according to some analysts, are likely to continue to outperform going forward. By investing in these metals, investors have obtained more exposure to a strong asset class than the stock market can provide.
