Are you concerned about the long term future of the dollar? Does China’s repeated currency devaluations leave you wondering if the United States will follow their lead in order to remain competitive on the world market? Do you worry about the ever shrinking purchasing power of the dollar leaving you broke in retirement despite being a saver all your life? If so perhaps you should consider a Gold IRA.
What is a Gold IRA
Precious Metals Individual Retirement Accounts, more commonly referred to as a Gold IRA due to gold being the precious metal most people tend to hold in their account. The other three metals allowed to be held in a Gold IRA are; silver, platinum, palladium. These function like regular self directed IRA with bullion and bars taking the place of paper assets such as stocks and bonds. Only certain types of bullion such as American Eagles and Canadian Maple Leafs are allowed to be included in your IRA due to the requirement that metals meet certain purity standards.
Depositories and Brokers
Precious metals used in a Gold IRA must be held by a trustee or depository. You are also responsible for finding an approved broker to sell the precious metals to you, fortunately most depositories have a list of brokers they work with. Gold IRA companies are required to be approved federal and state authorities. These custodians can include banks, savings and loans, federally insured credit unions and any other organization approved by the IRS.
In all of recorded history gold has been a store of value, it has always been worth something. Stocks can crash and be worth nothing just look at what happened with Enron. Bonds can become worthless seemingly overnight like what happened in Argentina or take huge reduction in value similar to the situation in Greece. Also if the Gold IRA is part of a properly balance portfolio a drop in price of gold would likely be offset by a rise in the value of paper products such as stocks and bonds.
What are the Risks
Are there any risks to owning gold? Yes, someone could rob the depository. It is therefore critical to verify the depository is properly insured.
Gold IRAs may be the perfect alternative investment for any investor who is concerned about the devaluation of the dollar and volatility of the stock market. Finding a reputable adviser is crucial and will make this process much easier.