Investments in gold have been popular for hundreds of years. Although you can invest in gold futures, ETFs, and mutual funds—the hard asset itself is favored by many investors in the form of coins and bullion. For individuals who want to secure these assets to enhance retirement planning efforts, they can do so using self-directed IRAs.
Self-directed IRAs and other plans are able to invest in precious metals to build wealth for retirement. Gold, silver, platinum, and palladium are available for this purpose, although the IRS does have rules regarding specific weight and other attributes of these metals allowed in retirement plans. Additionally, when investing in the physical precious metal, you cannot take physical possession of the asset. It must be housed in an appropriate depository until you sell it or decide to take it as a distribution when you reach retirement age.
Why invest in gold?
Of all the precious metals, gold is by far the most popular for investors. How can you miss the constant commercials encouraging you to invest in gold, and you may have wondered if you should. Many investors bank on gold as insurance against inflation and currency debasement. Although gold is no longer a part of everyday transactions, it is still important in the global economy. One need only look as far as the reserve balance sheets of central banks and many financial organizations to see that they hold one-fifth of the world’s supply of above-ground gold.
Thanks to growing optimism about the economy since President Trump’s election, gold prices are down a bit. A strong U.S. dollar is bad for gold. Despite rising consumer confidence, world events are unpredictable, and experts say you can expect for this downward trend in gold prices to reverse in the second quarter. Now trending near $1,180 per ounce, which is an attractive range, gold is expected for further growth throughout 2017.
Why is gold important in today’s economy?
- For wealth preservation: Throughout thousands of generations, this precious metal has preserved wealth. The same cannot be said of cash.
- As a hedge against other assets: When investors feel their money is losing value, they start investing in hard assets like precious metals.
- As a safe haven: When world tensions are high and economic uncertainty abounds, investors turn to gold. This gives many peace of mind during times of turmoil.
- For diversity: The various investing options for gold adds diversity in your portfolio which can help offset losses incurred by other assets.
There are many options of owning gold today. You can invest by buying actual gold coins and bullion. Futures, ETFs, and mutual funds are also available for gold and other precious metals, as well. All of these assets are permissible in self-directed IRAs.
If you haven’t found your pot of gold, don’t just chase the never-ending rainbow. Contact Advanta IRA today to learn more about investing with your IRA, and find out if owning gold will help you reach your retirement planning goals.
If you have questions about this article and want to learn more about alternative investments in your self-directed IRA, call us at (800) 425-0653 or send us a message.