Why Open a Gold IRA Account
Four precious metals are commonly purchased as investments: silver palladium (gold), platinum, and gold. Silver is another solid investment. However, at $20 per ounce spot price, a wealthy investor would need to invest several hundred dollars to reach his or her 20% target. Silver is a stable investment, but it’s not practical to store this much. Visit our website and learn more about gold ira florida.
Palladium, which is much more valuable than silver in value, has a spot price that fluctuates dramatically and can decrease by as high as $25 per ounce every day. Platinum is rarer than silver, but it is more stable than palladium. In fact, sometimes its spot price can fall below gold’s. The most practical precious metal is gold to roll over into a golden IRA account. An investor who is savvy about investing will be able to recognize the many benefits of opening a gold IRA.
Easy, Safe and Secure Tax Relief
The 1997 taxpayer relief act was passed by Congress, which allows the inclusion in an IRA of four precious metals. A precious metals IRA can be considered a self-directed IRA. However, it can only include investments in gold, silver and platinum. You cannot invest in all gold, so it is essential to understand what kind of gold is allowed. Precious metals IRAs can also include gold bullion and 24 Karat bar investments. These bars will need to be authenticated by either the New York Mercantile Exchange, NYMEX, or the Commodity Exchange Incorporation, (COMEX).
A Wide Variety of Options
An IRA can also include certain 24 Karat and 22 Karat Gold Coins. The American Eagle and Canadian Maple Leaf are the most popular gold coins that can be added to an IRA. You will also need to store the gold at an IRS-approved depository. There will be a storage fee. Like all self-directed IRAs, the gold IRA account must be managed by a custodian. This could be a bank, brokerage, or other financial institution. It is a good idea to compare prices and services before you choose a custodian.
Protection from Inflation
People lost almost their entire savings in 2008 because they had all their money invested on paper. They had no tangible assets and all of their value was invested into stocks and bonds. They are not insured by gold and are vulnerable to inflation. Even though other precious metals saw a slight decline in value following the 2008 economic crash, gold actually gained in value. Gold is literally the gold standard. Formerly poor countries like India, China, and India are buying every ounce that they can.