Discover the Gold IRA Investment Possibilities
Henry Clibborn- All investments involve risk, and precious metals are no exception.
- Gold is a popular investment option that can protect investors from inflation.
- Investors who hold physical gold can hedge against inflation, as gold tends to hold its value when paper currencies lose value.
Gold, historically, has been one of the most popular investments in the United States. Gold IRA investing has become increasingly popular over the years. Gold IRA investments are attractive because gold is valued in U.S. dollars, making it less volatile than other currencies. Furthermore, gold has intrinsic value, which makes it a more reliable investment compared to other commodities.
Gold IRA Investment Vehicles
There are three types of gold IRA investment vehicles:
Gold Bullion - the most straightforward type of gold IRA investment. Investors buy and hold physical gold in the form of coins, bars, or rounds.
Paper Gold - gold-backed investment options, such as the SPDR Gold Trust (GLD) and the iShares Gold Trust (IAU).
Gold ETFs - exchange-traded funds (ETFs) that track the price of gold.
Gold Bullion
Gold bullion is the purest form of gold. Gold bullion is non-monetary, and its value depends on its purity and weight. You can buy gold bullion directly from a gold refinery.
Gold coins
Gold coins are minted by governments. The value of gold coins is based on their purity and their weight. Gold coins are non-monetary. The American Eagle gold coins, the Canadian Maple Leaf coins, the South African Krugerrand coins, and the Australian Kangaroo coins are some of the most famous gold coins.
Gold bars
Gold bars are the purest form of gold. They are non-monetary. Gold bars are produced by refineries. The products of refineries are 99.9% pure and 99.99% pure.
Gold certificates
Gold certificates are certificates issued by banks that say they own a certain amount of gold bars. The gold certificates are redeemable in gold bullion.
Gold mining stocks
Gold mining stocks are stocks of companies involved in the gold mining industry.
Precious Metals
Precious metals, such as gold, silver, and platinum, are some of the most popular choices that investors add to their IRAs. Investing in precious metals is one way to diversify your IRA investments. Gold in particular is one of the most widely traded commodities in the world, so it's likely that its value will increase over time.
Gold ETF
Gold exchange-traded funds (ETFs) are also popular investment choices for individuals looking to place their IRA funds in gold. Gold ETFs are bought and sold like stocks, but investors can buy them with their IRA funds. Just like any other investment, gold ETFs can increase or decrease in value.
Other Gold Investments
Other investment options besides gold include silver, palladium, and platinum. Other than precious metals, investors can also add other investments, such as:
Bitcoin and other cryptocurrencies
Real estate
Certain types of bonds
Oil
Gold Stocks
Gold stocks are exchange-traded funds (ETFs) that own gold stocks. They trade like stocks and pay dividends.
Physical Gold
Physical gold is gold bullion that is held in a bank or trust.
Gold Bullion Coins
Gold bullion coins are minted from gold. They are bought and sold in coin shops.
Other Gold Investments
Gold mutual funds are the most practical way for an investor to get exposure to gold as a long-term investment. Most gold mutual funds focus on gold bullion, but some also invest in gold mining shares.
Gold ETF
Gold exchange-traded funds (ETFs) are investment options that are traded on major stock exchanges. Gold ETFs are redeemable on demand, like stocks, and are priced like stocks.
Gold futures
A gold futures contract gives the buyer the right to purchase a specific amount of gold at a specified price at a specified future date. The gold futures contract is traded on commodity exchanges like the New York Mercantile Exchange (NYMEX) and the Chicago Board of Trade (CBOT).
