1. Why Should I Invest in Gold or Other Precious Metals?

In the investing world, there is never a shortage of individuals or companies recommending investment avenues. In truth, there are many great choices for diversifying your metals portfolio and securing your financial future. However, precious metals such as gold are an excellent choice for those looking for a steady, predictable investment with a reduced risk of loss.

Due to the use of precious metals in currency, technology, and industrial applications, these metals tend to increase in value over time. Further, gold and other metals tend to increase in value in a crisis due to anti-tarnish properties and other factors.

Investors buy into gold and other precious metals using personal investment ventures or self-directed IRAs.

2. What Is a Standard Gold IRA?

A standard gold IRA is a type of self-directed IRA or Individual Retirement Account. These IRAs allow clients to invest in gold, silver, or other precious metals instead of traditional stocks and bonds. Though gold IRAs typically carry heavier fees, they still boast the same tax advantages as traditional types of retirement accounts.

Gold IRAs help individuals diversify their retirement accounts. Diverse retirement portfolios help protect individuals from stock market losses or other disasters, increasing their chances of a stress-free and financially sound retirement.

3. Is an IRA the Best Way to Invest in Precious Metals?

There are many ways to invest in gold, platinum, silver, and popular precious metals. Several factors determine which investment method is best for each investor. Gold, silver, and other metals may be purchased outside of an IRA, avoiding taxes, storage fees, and other issues typically associated with an IRA account.

However, physical gold doesn’t necessarily equal income. A source of income is a primary concern for individuals of retirement age. For this reason, gold holdings must be liquidated and turned into movable money. What’s more, retirees of a certain age must meet the expected minimum distribution requirements, which may force them to sell precious metals or some of their gold holdings unexpectedly.

These restrictions can cause issues when they occur unexpectedly. Some retirees benefit from a more diversified portfolio, in which case a standard gold IRA is only one of many retirement income sources. For example, IRAs connected to paper assets help diversify retirement accounts and ensure more sources of income and RMD withdrawals.

Even younger investors might find it ideal to choose traditional IRA programs that invest in gold equivalents or similar stocks. Gold IRAs sometimes carry significant minimum investments, meaning it may take younger investors more time to be financially ready for the gold IRA option.

For more advice on using gold and other types of traditional IRA accounts to establish a diverse, reliable portfolio for retirement, reach out to a professional financial advisor.

4. What Does a Standard Gold IRA Cost?

As we mentioned above, the price of gold fluctuates daily, making pricing for gold IRAs challenging to present consistently. Additionally, these accounts can carry a range of fees, including setup fees, deposits, custodial or administrative fees, storage fees, and more. In general, we can tell you that a standard gold IRA typically carries higher fees than either a traditional or Roth IRA.

New clients can expect setup fees typically in the $0-$150 range, with custodial fees totaling around the same on average. Depending on the volume of precious metals being stored, storage fees can be on the higher end of the $100-$300 range. These fees are generally higher than those in place for traditional IRAs.

5. Should I Buy Bullion or Coins?

Every investor profile is unique. With most gold IRA companies, investors have a choice between bullion, coins, or rounds. While all of these products are subject to the same value system, there may be situations in which sovereign coins are a safer investment choice. In general, sovereign coins such as the American Eagle coin or the Canadian Maple Leaf trade more efficiently and at higher rates. Bullion bars, including smaller 1oz bullion bars, can be challenging to sell back or liquidate. Larger bullion bars are ideal for large-scale or institutional investors.

However, one of the hallmarks of any good gold IRA company is a customer-focused buyback policy. Trustworthy gold IRA companies offer good deals on precious metal buybacks so that customers can make informed decisions about their financial futures.

6. When Should I Buy Precious Metals or Gold?

The best time to make gold purchases or invest in gold and other precious metals is when their prices are low. Fortunately, due to price and market fluctuations, this happens on a semi-regular basis. While it can be challenging to know when the prices of gold or precious metals will go down, there are scenarios in which the price of gold generally increases. As the stock exchange drops, gold prices increase. The same is typically true during times of national economic hardship. To keep a finger on the pulse of gold prices and more, stay in contact with an experienced financial advisor like those available through trustworthy gold IRA companies.

7. Where Can I Buy Gold?

Physical gold and physical precious metals are often available in specialized coin shops or through bullion dealers. If you’re interested in making personal investments in physical gold and precious metals, you may be able to locate an authority or dealer in your area. Before visiting, be sure to read up about any prospective dealers or coin shops and take a professional with you if possible. To protect your financial future, you want to buy your coins or bullion from a reliable, trustworthy source.

Beyond buying physical gold or physical precious metals in person, gold investment companies are excellent choices for investors of all stages, from novice to seasoned pro. These companies offer investors the opportunity to purchase gold and precious metals through IRAs or direct personal investments. Just like coin shops and bullion dealers, however, it’s wise to brush up on your companies before beginning an investment journey.

8. What Percentage of My Portfolio Should Be in Gold Holdings?

Which percentages of your portfolio should go to specific investment options will depend on a few factors. A determination of your investment holdings should be made based on your current income and other financial assets. Other factors include age, other portfolio contents, and retirement plans. Most financial advisors advise against riskier investments for investors closer to retirement age, including certain stocks and precious metal IRAs. Gold IRAs typically require high upfront costs and perform better over more extended periods. These types of investments may not be cost-effective to add to the portfolio of someone already approaching retirement.

However, younger investors could see significant returns on a long-term gold IRA investment. Over time, gold and precious metals show increasing value due to their use in commercial and national currency ventures. Young, long-term investors can take advantage of this value increase by opening a standard gold IRA account now for use in twenty or thirty years.

9. How Much of My Money Should I Invest in Gold?

While gold and precious metals are excellent choices for many IRA investors, these opportunities are not for everyone. No investor should put all of their money into any one stock, metal, paper, or another asset. Experienced investors secure their futures using diversified investment portfolios, including accounts from many different investing sectors.
How much of your money you should invest in gold depends on many factors. If you’re looking for safe ways to diversify your investments and retirement accounts, reach out to a financial advisor to get started.

10. Where Should I Store My Gold?

When you purchase gold through a standard gold IRA, the IRS dictates that you cannot store the gold in your home. Part of any gold IRA company’s role involves helping clients find and set up storage for any gold coins, bullion, or rounds held in a standard gold IRA account. Suppose a gold IRA custodian and secure depository are unavailable through the investor’s current gold IRA company. In that case, it is the investor’s responsibility to locate and secure custodial and storage services. Most gold IRA companies do partner with custodial services to streamline this process.

The best gold IRA providers only work with vetted, well-respected storage firms and custodial services. Remember, the gold in an IRA account must be stored in an IRS-approved depository. Make sure your gold IRA company complies with all custodial and IRS rules regarding the handling and storage of IRA gold and precious metals.

As an extra tip, we recommend asking any gold IRA company for proof of licenses, registration, and insurances before opening any account to ensure that your investment in their services is a sound financial decision. Gold investing is serious business, and your partner should be nothing less.