WHAT IS A GOLD IRA
A gold IRA or precious metals IRA is an Individual Retirement Account that includes physical gold bullion bars or coins or IRS approved precious metals like silver, platinum and palladium.
A Gold is similar to a traditional IRA, however, instead of holding paper investments, you can own physical bullion coins and bars….
ABOUT GOLD IRA'S
A Gold IRA is similar to a traditional IRA, however, instead of holding paper investments, you can own physical bullion coins and bars. An IRS approved custodian holds in safekeeping the contents of the Gold IRA for the benefit of the owner.
You may have limited to no say in your investments if you choose a conventional 401k or IRA with a brokerage firm or a bank. But once you open a Self- Directed IRA with Safeguard Metals you are liberated to make your own investment decisions and choose for yourself, with expert guidance, which IRA eligible precious metals to invest in.
CHOOSING THE RIGHT GOLD IRA INVESTMENT COMPANY
Safeguard Metals is prepared to show you how we are the top Gold IRA company in the world. With over 11 billion in assets under management and over 20+ years of combined experience with our partners, we are here to encourage, simplify, and assist you in looking at new opportunities and utilizing a Gold IRA as a diversification to your existing retirement plans.
New Future. New Opportunities. Safeguard Metals.
WHY INVEST IN GOLD?
There are many advantages and benefits to owning gold. Adding gold component your portfolio can considerably reduce your overall portfolio volatility, create a hedge against economic downturn, and add a tremendous opportunity for gain.
If you are retired or planning for retirement, whether you are planning to invest in gold for small savings or a more substantial long-term investment, gold in a self-directed IRA can help protect and preserve your wealth and can increase risk-adjusted returns. Having gold within a balanced retirement investment portfolio can potentially reduce the overall risk of the portfolio, helping to protect against downturns in the stock market.
THE DIFFERENCE BETWEEN PHYSICAL GOLD, GOLD STOCK AND GOLD ETF’S
Physical gold carries no counterparty risk, cannot be printed at will by any central bank, and is physical property that cannot be diluted. Physical gold and silver have stood the test of time for thousands of years and maintain value in the face of inflation, market volatility, political turmoil, currency devaluation, threats of terrorism, and war. While inflation and the constant devaluation of paper currency wither away purchasing power, precious metals act as powerful pillars of protection and shield against these corrosive forces.
One of the primary reasons to own gold is that it acts as a diversifier that is inversely correlated with the stock market. In a crisis that expanded from a market crash to a dollar collapse, physical gold will not only retain its value, but appreciate in value. For those who are looking to preserve their capital in today’s unprecedented economic climate, a long-term investment in gold would be the best choice. In the event of a market crash, physical gold gives you the most security and more options.
Investors that buy a gold mining stock bet on that company’s ability to make profits regardless of the price of gold. If the price of gold goes up but the costs associated with running that particular company also increase, then the mining company’s stock could actually decline in value. The values of exploration companies’ shares reflect those companies’ efficiencies and their ability to find gold. They are not a reflection of the actual gold price.
Gold stocks are also more volatile than physical gold. In addition, technical analysis shows that gold stocks are more closely correlated to the stock market than physical gold, diminishing the purpose of gold as a diversification tool. While gold posted an annual gain during the panic of 2008, the benchmark HUI gold stocks index lost 27% of its value.
Keep in mind that investing in individual stocks takes a lot of preparation, study, and research that is entirely detached from the analyses of the overall gold market.
An Exchange-Traded Fund (ETF) is similar to a mutual fund in that it tracks an asset or an index of assets. A gold ETF may hold various gold assets, including stocks in mining companies as well as gold reserves.
Generally, only mega-banks, such as Citi, JPMorgan Chase and Merrill Lynch-BOA, are permitted by the gold ETF to act as authorized dealers. The constant functioning of these banks is essential for the ETF. A temporary cessation or collapse of operations at one of the “authorized dealers” would damage the liquidity of ETFs.
Trust in the Custodian is Paramount
If you are buying gold as a hedge against a failure in the financial system, you must be confident that the custodian would not be impaired if a crisis were to happen.
Unfortunately, most are not prepared for a financial crisis, which seem to get worse as they happen. A perfect example is the crash of 2008.
The best reason to own physical gold is a hedge against risk. It can be your last line of defense in an economic crisis - a form of wealth insurance.