The Tax Payer Relief Act of 1997 made it so that investors can add precious metals to their individual retirement accounts and therefore, profit from their historically steady gains. These precious metals include gold, platinum and silver, with many investors choosing gold to diversify funds.
Gold has always been the ultimate hedge against inflation, rising when stocks and the dollar fall, as well as being an excellent hedge against political and economic uncertainty. Holding a percentage of your portfolio in gold can help you ride out inevitable market volatility.
Consult with your brokerage to find out if you can add gold to your present IRA account. There are some plans that do not have this capability, and you would then need to open a new silver-gold IRA. Discuss your options with a trained financial adviser, or a retirement specialist at online broker ETrade to find out if your IRA allows you to invest in gold.
Gold Backed IRA: The Benefits Of Owning Gold
By investing in a Gold backed IRA, you are better positioning your self for realizing gains in your retirement portfolio. In a retirement account gold can be the ultimate asset, as it is the oldest, purest and most durable form of money in the world.
Gold is also impervious to government devaluation, it has no debt, and no one can alter its value. These facts are why gold has historically made significant gains for investors, and is a good fit for retirement accounts based on its durability.
A Gold backed IRA account benefits from negative monetary, environmental, political, and economic conditions which all contribute to a rise in gold prices. Gold has always been referred to as the world’s “crisis” commodity, and it is for this reason that investors are investing in these IRAs.
Gold Backed IRA: Type Of Gold That Can Be Held In An IRA
Once you have decided either to invest in gold in your current IRA, or open a new silver-gold IRA, you can then begin the process of submitting the necessary paperwork to open your account. This will include a storage fee for the gold that is held in your Gold backed IRA.
Currently, the US government allows Gold Proof American Eagles and Gold American Eagles to be invested in gold IRAs, and the gold must be stored at an approved depository that is located separately from your IRA’s custodian, according to IRS rules.
With retirement accounts specifically in mind, the US Mint designed Gold Proof American Eagles. There is a limited supply of proof gold, and each year only a limited supply of Gold Proof coins are produced for IRAs. This results in a scarcity which could lead to them outperforming generic American Eagles by 1.5 to 2 times.
These gold coins are exempt from confiscation under the Executive Order of 1933, and are also recognized and received in major markets the world over. This gold is also instantly liquid, as are American Eagles. American Eagles are, however, subject to confiscation by the US government in times of crisis.
Gold Backed IRA: Physical Gold Or Gold Stocks?
When investing in gold, you have the choice of investing in physical gold, gold ETFs, and mining stocks. Each strategy contains its own unique set of risks, and each should be carefully weighed against your risk profile.
Utilize your brokerage’s research tools, to find the strategy that is right for you. Leading online brokerage ETrade makes it easy to invest in a gold backed IRA, and rest easy at night knowing you own one of the best forms of insurance against risk.