Diversify Your Retirement with a Gold IRA

gold IRAIf you’ve turned on the news in the last five years, you’re probably aware of the fact that our global economy isn’t doing so well.  In a world with governments facing bankruptcy, international turmoil, and weak job growth here in the US, Americans are looking for alternative investments to protect their retirement.  The stock market has been shaky at best, the real estate recovery has been slow, so where else can Americans look to safeguard their nest egg?  Since the crash of 2008, many have begun looking towards physical precious metals like gold and silver.  The best way to invest in precious metals is through a gold IRA.

Why Invest in a Gold IRA?

If you have an employer based retirement plan such as a 401k, you’re familiar with the tax benefits provided by your retirement account.  By opening a self-directed IRA, you can take advantage of many of the same retirement plan benefits, while also having the ability to purchase assets that are not normally included in an IRA –such as gold and silver.

A gold IRA is attractive during times of economic uncertainty because, when investors lose confidence in the dollar, they usually look to precious metals.  Gold and silver tend to have an inverse relationship with the US dollar.  When the US dollar is down, gold tends to increase in value.   Gold IRA expert Peter Antonellis says “As long as the federal reserve is printing money, I will invest in gold and silver!”  Gold is usually treated as the hedge against inflation, and can help you in diversifying your retirement account.

How Do You Get Started with a Gold IRA?

There is no shortage in gold IRA companies that specialize in precious metals IRAs.  Simply get on the phone with a few, and as long as you know what to look for in a gold IRA, you should be able to find a company that can help you meet your family’s financial needs.  Four questions to ask a gold IRA company are…

  1. What fees are involved in opening a new gold IRA account?
  2. What are the annual account administrative and storage fees for my gold IRA?
  3. Does the company recommend gold bullion or numismatic coins?
  4. Does the company provide segregated or commingled vault storage?

When opening a gold IRA, know that some of the highest rated companies waive your account set up fees entirely.  Some even cover your first year of storage, so if a company is quoting hundreds of dollars for such services, realize they’re eating into your bottom line.

After your first year free of account fees, you should still look to make sure the annual fees are low.  Without doing the research and finding the best rates, you could pay thousands of dollars more than needed for your retirement account.

Think about it.  Most gold and silver investors hold their accounts long term – for 20+ years.   If company A charges $100 more annually for storage of your precious metals, that’s $2,000 in fees for the same quality storage that you’d receive from company B.  Knowing what to expect and holding on to your high standards before opening your account can save you and your family funds that are better spent elsewhere.

Also an important note:  Make sure the gold IRA company is quoting you a price on segregated vault storage – not commingled storage.  With segregated vault storage, you can be sure the metals you’ve purchased are being held 100% separate from the precious metals of other investors.  Commingled storage is not the most secure storage for your investments, and there are companies that offer segregated storage for less than their competitors offer commingled.  Do your research and you’ll get the best storage for the best price.  It’s worth the time to make a few phone calls!

When analyzing gold bullion and numismatic coins as an investment, you may hear different information from different companies.  The truth is, that bullion most closely reflects the spot price of the commodity.  When it comes to numismatic coins, there are so many variables that can affect the price of your investments.  Most important in these variables are the often high commissions paid to the gold broker when they sell certain numismatic coins.  After paying inflated prices for your numismatic coins, you may find that the coins will have to appreciate significantly in order to eventually make a profit from such coins.  An investor that is in the red zone on their investments is not a happy one.  In fact, if you read negative reviews from gold companies on TrustLink or the Better Business Bureau, you will find investor complaints of gold IRA company salesmen that aggressively pushed them to purchase numismatic coins – which were overpriced.  Gold bullion doesn’t pay the salesman as big of a spread, but is a better choice for your investment dollars.  If anyone tries to persuade you otherwise, call another company!

Get Started with Your Gold IRA!

It may take time analyzing the information available to you, but by rolling up your sleeves and making some phone calls, you can ensure your gold IRA investing goes smoothly.   Your phone and internet connection are really the only tools you need to secure the services of a gold IRA specialist.  Fortunately for you, there is a lot of information available online that can help find the right information to get you on your way to diversifying your retirement account with precious metals.