There are four types of precious metals that can be purchased as an investment: gold, silver palladium and platinum. Silver is another viable investment. However, with a spot value of $20 an ounce a wealthy investor would need to invest several hundred pounds in order to achieve a 20% target. To store that amount of silver, the price would consume a significant portion of an investor’s retirement funds. Silver is stable but not very practical. Palladium is worth significantly more than silver. However, its spot value fluctuates tremendously and it can fall by as high as $25 an ounce every day. Platinum is rarer than silver, but it is less stable than palladium. At times its spot value can even drop below gold’s. It is possible to roll over gold into an IRA account by using any of the precious metals. Opening a gold IRA is a wise investment decision.
Easy and Safe tax Relief
Congress passed the taxpayer Relief Act in 1997. It allowed for the inclusion the four precious metals into an IRA. An investment in precious metals IRAs is not more than a direct IRA. It can only include gold, palladium and silver platinum. A precious metals IRA investment does not allow for all types of gold. It is therefore important to be aware of what type and amount of gold is allowed. A precious metals IRA can also be used to include gold bullion or 24 Karat bars. These bars need to have an authentication stamp from either the New York Mercantile Exchange NYMEX or the Commodity Exchange Incorporation COMEX.
A Wide Variety of Options
Certain 24 Karat or 22 Karat gold coins may also be included in an IRA according to the IRS. The American Eagle (Canadian Maple Leaf), and the Australian Philharmonic are some of the most popular gold coins included in a precious-metals IRA. Also, the gold must be kept at an IRS-approved bank or depository. A storage fee will be applied. A custodian must be appointed for the gold IRA accounts, as with all self-directed IRAs. Also, the custodian may charge fees so it is best to shop around for prices and compare services.
Protection against Inflation
In 2008, thousands of people lost all their savings due to having their money invested in paper. It meant that they had no assets and all of their value was invested in stocks or bonds. These assets do not have the backing of gold and are susceptible to inflation. Even though precious metals such as gold experienced a slight drop in their value after 2008’s economic collapse in 2008, they actually appreciated in value. Gold is now the gold standard. In fact, countries that were once poor like India and China have begun to buy every ounce of it.