Can a gold IRA really protect your retirement savings?

Whether you’re retired, getting ready to retire or just secured your first job, gold and other precious metals provide a unique opportunity to diversify your portfolio. Every day, thousands of people purchase gold assets for themselves while seeking alternative ways to achieve great returns.

Why are gold and other precious metals good investments?

Gold has established itself as a reliable asset

It has provided strong historical returns over the long-term, with average returns greater than U.S. T-bills.

Gold acts as a haven for investors

When the market is in disarray, gold’s returns remain strong. Therefore, it is the perfect hedging asset for any portfolio.

Gold is immune to the dollar’s fluctuations

When the U.S. dollar’s value falls against other currencies, investors flock to gold assets, causing gold to spike in value.

Gold’s value will continue to increase

With a limited supply and burgeoning demand, gold is poised to skyrocket in value.

Gold IRA Investing
But buying gold isn’t a straight-forward process. In the market, there are many ways of buying gold. It is important to understand these buying options before delving into precious metals investing.

What are the different ways of purchasing gold?

Buying physical gold coins or bullion directly from a seller.

When buying physical gold, you must store it. You can either use a personal safety deposit box or a Gold IRA. A Gold IRA allows you to invest in gold and other precious metals as part of your retirement portfolio.

Gold Exchange Traded Products

You can invest in a Gold ETF or ETN, whose prices are heavily correlated to the price of gold. The ETF is the owner of gold, and by purchasing the ETF, you become an indirect owner of the gold. An ETN is bit more complicated as you never become an actual owner of gold. But the yield of the note is equal to the returns you achieve when investing in gold.

Investing in the Market

Some stocks, namely gold miner stocks, tend to move in relation with the price of gold. As the price of gold rises, gold miners make more money, increasing the price of the stock.

The methods of buying gold each has its own inherent risks and advantages. But many investment professionals agree that owning a Gold IRA is the most effective, safe and profitable way of investing in gold.

What are the advantages of investing in a Gold IRA?

Tax Advantages

Because the IRS considers gold to be a collectible, owning a Gold IRA presents investors with long-term capital gains advantages compared to owning stocks.

High Quality Gold

When using a Gold IRA to invest in precious metals, you can be rest assured that you are obtaining the highest quality gold available. The IRS mandates a specific minimum requirement for the quality of all gold owned via a Gold IRA. This is not true for other gold investment vehicles.

Gold IRA investing may be considered the smartest approach to investing in gold and diversifying your portfolio with precious metals, but it’s not suitable for everyone. There is no one-size-fits-all approach to investing in precious metals. Each person has his own investment objections. But it is important to dispel the myths that deter investors – who would benefit from investing in precious metals – from investing in Gold IRAs.

Decline of the dollar

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What are the myths that discourage people from investing in Gold IRAs?

Rising interest rates are bad for gold’s value

The current outlook on the U.S. economy is optimistic. The Fed has discussed its plan to continue raising rates into the foreseeable future. Some investors erroneously cite these facts as reasons to avoid investing in precious metals. But some of gold and silver’s most profitable runs occurred during times of increasing rates!

Gold mining stock offer returns at 2x or 3x the returns of gold bullion

This is not supported by any statistical evidence or data. Looking from 2000 to 2014, gold increased in value by over 300%. In the same timeframe, gold mining stocks went up a little over 100%. Gold mining stocks clearly do not outperform gold in the long-term.

Investing in gold is only for sophisticated, seasoned investors

This could not be farther from the truth. With Gold IRAs, novice investors can purchase gold with ease. There’s no hassle or complex legal documents involved.

Along with every investment opportunity comes some risk, and investing in gold is no exception. Investing in gold doesn’t pose the same risk as investing in small, unstable technology companies does, but you should still be aware of all potential outcomes before investing.

What are the risks of investing in a gold IRA?

Volatility Risk

There is no guarantee that gold will rise in value, and even if it does, there is no assurance that it will not drop back down in price. Gold, in particular, is notoriously volatile. However, this is the case with most investments, so market volatility should not discourage you from adding a Gold IRA to your portfolio.

Broker Scams

When purchasing gold, the investor rarely has the metal in his physical possession; the transaction is almost always completed through a broker. Unfortunately, there exist impostor brokers who bilk investors by taking their money without ever purchasing gold on their behalf. This risk of fraud, however, can be avoided by choosing a reputable gold investment company.

High Ownership Costs

Gold needs to be mined, transported and stored; unfortunately, that does not all come free of charge. Transaction and storage costs, as well as commissions can eat into your returns. However, with gold’s strong potential upside, the initial fees become marginal.

A Gold IRA can be a prudent investment instrument that provides reliable returns and a hedging strategy over the long-term. However, many investors already have a 401(k) portfolio.

Can you fund your Gold IRA with 401(k) rollover?

The answer is yes! Gold is traditionally viewed as a long-term investment, so using your 401(k) rollover to fund a Gold IRA is quite common. The steps of doing so are quite simple:

As stated previously, this is crucial because you need an investment company that you can trust. You don’t want to inadvertently use a fraudulent broker.

  1. Choose a well-regarded gold investment company

    As stated previously, this is crucial because you need an investment company that you can trust. You don’t want to inadvertently use a fraudulent broker.

  2. Fund your Gold IRA

    You can choose to use your 401(k) rollover, or open a new account directly with a broker – it’s up to you.

  3. Get the gold shipped, and store it

    The gold will usually be stored in a broker’s storage unit, which should be in a licensed reservoir.

A Precious Metal IRA is a pragmatic investment that provides a strong upside, and acts as an effective hedging strategy. If you decide that you would benefit from diversifying your portfolio with a Precious Metal IRA, to get started you must choose a reliable investment company. Below is a list of the gold investment companies with reviews from trusted ratings companies, complaints from investors, past law suits and annual fees. Remember, it is chiefly important to pick a top-rated investment company to avoid a potential scam.

Top 3 gold IRA Company Reviews

#1 Regal Assets – Overall Best Gold IRA Company

Regal Assets Logo

  • Standard Fees: Annual fees waived for 1st year/Flat fee model (not scaled)
  • BBB: A+ rating
  • BCA: AAA rating
  • TrustLink:
  • TrustPilot:
  • Address: 2600 West Olive Avenue, 5th Floor, Burbank, CA 91505
  • Review: Regal Assets Review
  • Website

#2 Advantage Gold

Advantage Gold

  • Standard Fees: Flat Fees
  • BBB: A+ rating
  • BCA: AA rating
  • TrustLink:
  • Address: 12100 Wilshire Blvd Suit #1450, Los Angeles, CA 90025
  • Phone: (310)774-2133
  • Website

#3 Wholesale Direct Metals

Wholesale Metals Direct

  • Standard Fees: 1st year waived* – $175/year afterwards up to $100K.
  • BBB: A+ rating, 0 complaints
  • BCA: AAA rating, 0 complaints
  • TrustLink:
  • Address: 881 Alma Real Dr, Suite 305, Pacific Palisades, CA 90272
  • Phone: (866)873-1445
  • Website