Thursday, June 18, 2015

How To Invest in A Gold IRA




 Investing In A Gold IRA 

Having a retirement nest egg that can withstand the tribulations and uncertainties of the economy is important, and it is for this reason that many would-be retirees are adding a gold IRA to their investment portfolio. But what exactly is gold IRA and should you consider investing in it?

A gold IRA is a type of individual retirement account that makes it possible for the investor to own physical gold, silver, platinum and palladium. This allows the investor to diversify their portfolio away from paper-based assets such as cash, stocks and bonds. There are certain rules and regulations that govern what gold can be held in an IRA, and these include meeting the fineness standards of IRS. It is also important to note that investors do not stash their gold bars in their homes; rather, they are stored in an IRS-approved depository. 

The reason why many investors are turning to gold is because of the security gold offers as far as inflation is concerned. If an investor relies on a portfolio that is based on stocks, mutual funds and so on, they will be badly hit when inflation strikes. Gold prices usually move in the opposite direction of paper assets in the event of inflation, which implies greater investment security. 

If you are looking to put IRA funds into gold, you have to establish a self-directed IRA which is a type of IRA that the investor manages, and which allows investment into a wider range of products. For a gold IRA, you will need a broker to buy the gold and a custodian to create and administer the account. Custodians are usually banks, brokerage firms, credit unions, trust companies and other associations that have been approved by Federal or state agencies to provide asset-custody services to investors. The company you choose as your custodian will store or hold your actual gold. 

Usually, your custodian will not select dealers for you. But since the custodians have established relationships with metal dealers throughout the country the country, you can request that they share the list of dealers with you. Alternatively, you could approach a trusted metal dealer and ask them to recommend a good custodian. The bottom line is that you, as the consumer and investor, get to choose who you wish to do business with. 

When choosing a company, go for one which is transparent about their charges and one which has a proven track record. Also, go for a company which is flexible about meeting individual needs and one that meets all qualifications in terms of licensing and certification. 

Now before rushing into setting up a precious metals IRA, it is best to look at the as many as posisble and compare them. There are a number of steps you can take to compare gold IRA companies and it is wise to follow all the steps before taking action.