The Benefits of Opening a Gold IRAAccount

Open a Gold IRAAccount

Four different precious metals can be purchased as an investment: gold, silver palladium, platinum and gold. Silver is another great investment. However with a spot cost of around $20 an troy ounce, a wealthy individual would need several hundred pounds in order to achieve a goal to have 20% of his portfolio. You can see buying gold for ira for more information.

Because silver is very stable, it would be difficult to keep that much. Palladium has a much higher value than silver, but its spot prices fluctuate wildly. It can often drop by $25 an ounce within a single day. Platinum is rarer that gold, but palladium is less stable and its spot prices can sometimes fall below those of gold. To roll over to a gold IRA, gold is the most practical. It is important for every investor to be aware of the benefits of opening a Gold IRA.

Easy and Secure Tax Relief

Congress passed the taxpayer aid act in 1997. This allowed the inclusion four precious metals into an IRA. A precious metals IRA does not have the same structure as a self-directed IRA. Investments can include palladium and silver platinum. The investment in precious metals IRAs is not allowed to include all gold. Therefore, it is crucial to know the permitted gold. An IRA that includes precious metals can contain gold bullion or 24 Karat bars. These bars must be stamped with an authentication hallmark from one or both the New York Mercantile Exchange and the Commodity Exchange Incorporation.

A wide range of options

Certain 24 Karat- and 22 Karat-gold coins are also allowed to be included in an IRA. The American Eagle, Canadian Maple Leaf, Australian Philharmonic and other gold coins are most often included in a precious Metals IRA. An IRS-approved repository must be used to store the gold. Storage fees will apply. As with all self directed IRAs the gold IRA must have a custodian. A bank or brokerage firm would be a good choice. A fee will be charged by the custodian so it’s a good idea for you to shop around and compare prices.

Protection from Inflation

Many people lost their whole life savings in 2008 due to the fact that they had most or all of their money invested into paper. Their assets were all invested in stocks or bonds, so they did not have any physical assets. None of these assets can be backed with gold and are therefore subject to inflation. Even though gold’s value declined slightly after the 2008 economic crisis, it actually increased. Gold is now the gold standard. Even though it was once considered an impoverished metal, countries like India or China are now purchasing every ounce of gold they can.

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