Gold IRA investing is a good option when you intend to protect your wealth and retirement savings. By investing in precious metals like gold, you are diversifying your retirement savings, which will reduce the risks of having your savings only exposed to the volatility of the stock markets and bonds. Just like any other investment, you need to learn some of the basics in order to make the most of these assets. In this article, we discuss some gold IRA investment guide.
Gold IRA Investing Guide
1. Why Consider Gold For Your Retirement Plan
Precious metals like gold and silver have been around since the start of civilization. They are naturally occurring and have limited resources. In 2001, an ounce of gold was valued at $271 and ten years later, its value was up at $1,896; a roughly 700% increase despite several worldwide economic downturns during that span of a decade. Gold has remained steadfast, unlike most markets which have remained volatile due to changing economic conditions.
2. Physical Gold Backed IRA
You can purchase physical gold like coins or bullion included in a self-directed Gold IRA or 401(k) instituted in a trust company. Conventional IRA’s or 401(k) with a bank are usually invested in bonds, stocks, or mutual funds. In this set-up, you usually don’t get to choose where your investment goes. A self-directed IRA allows an individual to decide on what to do with investments like precious metals. Physical gold IRA is an assurance that your investment will be there if you need it.
3. Profitability of Precious Metals
Precious metals like gold are rather different from other investments. When other assets decrease in value, the price of gold and other precious metals often go up due to its longstanding reputation as a safe haven asset. Predictions that the price of gold would double by the year 2030 is not impossible.
4. Inflation and Deflation Protection
In 2008, the country experienced an economic disaster. Prices of real estate went down and stock markets were highly volatile. The U.S. dollar and the Euro were very unpredictable. Governments and financial institutions went looking for ways to protect themselves from market volatility. Precious metals like gold became the best option to veer away from the unpredictable market. Over time, gold has proven its stability even with inflation or deflation in the economy.
5. How Much Gold Should Be in Your Portfolio
Most financial experts suggest that you should put around 5 to 10% of your savings in precious metals, such as in a gold IRA. APMEX, the world’s largest online retailer of precious metals, suggests you put in around 5 to 30%. This would, however, depend on your risk tolerance and your confidence with the economy.
Gold as protection against market volatility? Watch this video from the Birch Gold Group:
Investing in gold IRA can prove to be a wise option, especially if you’re the conservative type of investor. Gold has proven time and again of its potency against any economic volatility. Precious metals like gold are your best option when you want to protect your hard-earned wealth and retirement.
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