Is Gold IRA a Good Investment?

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A lot of people have been bitten by the investment bug, and as a result, the business sector added a lot of new and improved variations towards this goal to give people a wider variety of things in which to invest.

One such is the Gold IRA (Investment Retirement Account), which in its simplest terms is also known as a precious metals IRA and is not physical gold but rather a retirement account name, that lets its investors hold physical gold in it, in the form of gold coins, bullion, or bars.

Other such precious metals including silver, palladium, and platinum are also allowed to be held in these accounts, once approved by the relevant authorities such as the Internal revenue Service, of which the “IRA” stands for.

One can also add paper investments such as ETFs (exchange-traded funds) and mutual funds to the mix. To find out more about these entities, click here.

There are several advantages to this type of investment and we shall look at these below.

Advantages of Gold IRAs

Advantages of Gold IRAs

Many expert investors may disagree to holding gold for the IRA, due to a few reasons; such as they do not pay dividends (i.e. the distribution of a certain companies’ earnings to its shareholders) either monthly, quarterly and so on or it is paid out either in the form of stock or cash.

Typically, these types of accounts supply a safety deposit box in which to hold the items. Those  who are sceptical are mainly due to the financial crisis of 2008 to 2009, where the price of gold peaked to over $1700 per ounce and has since been traded for a mere £1000 to a maximum of £1300 range.

This meant that for more than 30 years the price of gold did not make anyone rich.

Although if you had invested in gold back then in the 80s you would have today received ten-fold the amount for it.

The shifting price of gold should not be a deciding factor in this matter, however, as everything shifts at some point. But if you are looking to diversify your portfolio, any investor will agree that it would make for a great addition.  The gold process generally move in opposite directions and these retirement portfolios provide a diversified insurance policy against any form of inflation https://en.wikipedia.org/wiki/Inflation

How Does It Work

The basic way of doing it is to find a custodian or benefactor for the IRA, buy the gold and along with an approved depository, you deposit the gold or precious metals in the depository in a way the custodian is responsible for it.

In other words, you as an individual cannot purchase it and deposit it yourself you will need the help of someone who works for the IRA.

A custodian can also be a bank, brokerage firm, credit union, or a savings and investment association that has been legally approved by the federal agencies and can provide this service to investors.

The advantage of this is that established custodians already have relationships with several different authorities and dealers who can assist them to make sure the process is completed successfully.

How to Choose the Right Company for Your Investment?

It can be complicated to choose the right company for your dealings, due to the speciality of the nature of the investment, and typically brokerage firms do not offer this option to its customers, therefore selecting the right service may be a bit tricky, but there are things to look out for or criteria, that stand out.

Qualifications

This may not seem like an important factor but it will make a whole lot of difference regarding whom you are dealing with and you should always go with the company that has the legal licenses, bonds, and insurance, and registrations to protect your investment. You can easily find this out by asking them directly.

Transparency

Always make sure and ask, if necessary, for the company to be transparent with their fees. Make sure no hidden fees and extra costs are rising out of nowhere after you are done investing with them.

Track Record: Checking their track record is a good idea as well. Those establishments with an outstanding reputation such as third parties or NobleGold IRA are the ones to go for.

Others that have had several complaints filed against them or have exorbitant fees and bad customer service, should be kept away from your investments. The genuine ones usually do not need to push their business for a hard sell, and the way they do their business should show clearly.

Flexibility

As an investor, your goals will be very different from the guy next door. In which case a company that will cater to these ever-changing needs is worth having on your side as opposed to a one-size-fits-all approach.

To answer the original question, investing in Gold IRA is a good choice to make for the long term.

Are you considering a Gold IRA as your next investment?  What’s your main reason to add a Gold Investment Retirement Account to your investment portfolio?

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