Open a Gold IRA account
Four precious metals are commonly purchased to invest in: gold, silver and palladium. Silver, another good investment option, is available at about $20 for an ounce. However wealthy investors would need to invest several hundred pounds of silver to meet their 20% portfolio goal. Read more now on IRA gold account.
While silver’s price is stable, it would be very expensive to store that amount. This is why silver is not a practical investment. Although palladium’s spot price is more expensive than that of silver, it fluctuates so much and regularly drops by $25 or more per ounce. It’s more expensive than palladium, but platinum is rarer. Sometimes its price drops below that of gold.
The most convenient precious metal for converting into a Gold IRA is gold. A gold IRA has many benefits and any wise investor should be aware of them.
Easy and Secure Tax Relief
Congress passed the tax relief act of 1997, allowing for the inclusion four precious materials into an IRA. It is similar to a Self-Directed IRA but the investment may consist of palladium, gold or silver. It is essential to know what types of gold are allowed in a precious materials IRA. You can add gold bars and bullion to a precious-metals IRA. The bars will need to be authenticated by either the Commodity Exchange Incorporation, or New York Mercantile Exchange.
IRS permits certain 22 and 24 Karat Gold Coins to be added into IRAs. American Eagles, Canadian Maple Leafs and Australian Philharmonics are gold coins that most often make up precious metals IRAs. A storage fee is charged for gold stored in an IRS approved depositories. Like all self directed IRAs the gold IRA must be held by a custodian such as a broker or bank. A custodian may also charge fees, so shop around to compare the prices.
Protection Against Inflation
In 2008, thousands lost all their savings in a matter of hours because their investments were largely or entirely made up of paper. They had no real assets. All of their money was in bonds and stocks. All of these investments aren’t backed up by gold. They are also subject to inflation.
Gold actually increased its value even when other precious materials declined in value following the 2008 financial collapse. Gold is literally the gold standard, with countries like China or India buying up every last ounce.