Why Should You Invest in a Gold IRA?
Updated: Jun 25, 2021
Looking to add gold bullion and coins to your retirement portfolio? A gold IRA may be right for you! Unlike a conventional IRA account, a gold IRA lets you invest in physical gold or other types of precious metals such as silver, palladium, and platinum without actually holding them in your possession.
The Benefits of Investing in a Gold IRA
Around 1500 BC, gold became the first official exchange medium for international trade. Flash forward several thousand years later; gold is still going strong and has become a popular retirement investment.
A gold IRA, also known as a self-directed IRA or precious metals IRA, is popularly seen as a necessary component of a well-diversified portfolio. There are a host of reasons that investing in a gold IRA makes a lot of sense, including:
Gold performs. Gold has made more than double the gains of the Dow and the S&P in the 21st century. Since its beginning, gold investors have experienced a 9.02% annualized average.
Gold offers financial stability. Gold's above-ground supply increases per annum are minimal, keeping inflation low.
Gold holds its purchasing power. Compare gold to fiat currencies in circulation today, many of which have realized an estimated 95% reduction or more in their purchasing power.
Gold IRAs have tax advantages. As with other types of IRA, the gold IRA offers investors tax-free gains.
Rollovers are easy. Investors can roll over assets from other IRAs to a gold IRA without red tape.
Gold IRAs offer numerous diversification strategies. Investors flock to this type of IRA to hedge against inflation and geographic, default, and currency risks.
How Do You Invest in a Gold IRA?
Setting up a gold IRA is as easy as setting up other types of IRAs. Essentially, investors choose between a pre-tax standard gold IRA or a post-tax Roth gold IRA. Next, they roll funds from an existing IRA (or set up the Roth version) and select a funding source and custodian.
For more information about partnering with our gold IRA investment company, contact us today!