Why Invest In A Gold Backed IRA?

Gold coins and bullions have become the best asset to include in an IRA because they have the highest long-term value. Out of all kinds of assets that are used for retirement plans, gold backed IRAs are the most flexible.

Assets such as stocks, bonds and saving accounts rely on the performance of other entities and, thus, can change with time but gold’s value is not affected by human error and the performance of others. This makes a gold backed IRA the best choice for retirement plans.

Charles DeGaulle, former French president, said that gold is not monopolized by any nation and is globally accepted as legal tender. This proves that a gold IRA investment is the best way to go for retirement plans. Physical gold assets are also great for savings accounts and mutual funds.

In the chart in GoldIRASpecialist.org, you’ll see the price of gold in real-time. You may adjust it if you need to.

Gold IRA Investment

The accounts of retirees are among the worst hit in cases of financial crises. It has been estimated that a total of $2 trillion have been lost since the summer of 2007 in American retirement accounts. This means that every retirement account in United States has lost thousands of dollars. It was, therefore, worthless to invest in retirement accounts since years of saving have been lost. It was for this reason that, the then president of United States, Mr. Clinton, signed Tax Relief Act into law in 1997.

This law was to enable citizens have a safe retirement – one that cannot be affected by economic meltdowns. The act was to allow citizens to add precious metals such as platinum, gold and silver into their Individual Retirement Accounts (IRAs).

The law allowed individuals to add bullion bars and coins to their retirement accounts starting 1st January 1998. The Individual Retirement Account holders, therefore, started to put gold bullion bars and coins into their Individual Retirement Accounts. Since then the prices of gold have increased.

Not all gold bullion coins are allowed in Individual Retirement Accounts; only legal gold coins with fineness of 0.9999 are allowed to be added to Individual Retirement Accounts. The only gold bullion coin with a fineness that is less than 0.9999 allowed in an IRA is the American Gold Eagle. It has a fineness of 0.9167.

The gold coins that are allowed to be added to IRAs are: Australian Gold Nugget, American Buffalo, and Canadian Gold Maple leaf. The South African Kruggerand is however, not allowed in American Individual Retirement Accounts. This is manly because it has a fairness 0.9167 which is less than the minimum allowed threshold of 0.9999.

The process of adding a gold coin or bar into an IRA is not complicated. The process is simple and involves the following stages. First, the account holder consults with his individual account custodian. Here the account holder inquires as to whether he  is allowed to add gold into his retirement account. If one is not eligible to add gold into his account, he will get appropriate guidance from the custodian.

The next step is that the account holder inquires about the fees charged on the annual fees on the storage of the gold bullion. The annual storage fees are normally very low; less than 1% of the of total IRA value. Finally, the account holder will be required to complete some paperwork. The individual’s precious metal is kept in a depository that is approved by IRS until the individual retires. This precious metal is then shipped directly to the individual or sold anytime for cash.

Many Americans are currently taking advantage of this process. The gold IRA allows individuals to diversify their retirement investments; in case of any economic meltdown, these individuals would not be adversely affected. This process allows individuals to own physical gold or other precious metals in their retirement accounts. The gold backed IRA is approved, tax free, and simple to acquire.

What is Gold IRA Investing?

Gold IRA investing decreases instability for one’s retirement portfolio. Since olden times, gold has always moved in the opposite direction to bonds and stocks thus it is negatively correlated to such funds and also has higher value as compared to them in the stock market and in general.

Performance of all such assets has shown highest growth for gold and bullions as a gold IRA investment. These are also known as metal backed retirement accounts. Whatever your history in retirement investments has been, tangible investments like precious metal e.g. gold and silver have become highly profitable and secure for every retirement plan and have made old age a haven for retirees. Gold backed IRAs are the perfect choice for retirement portfolios.

Gold backed IRA investments are a profitable plan in that they provide more stable returns with lower risk and they also lower the risk without negatively affecting on the returns. Basically returns show how much profitable an asset, company or investment is relative to the total assets. And this is what a gold IRA proclaims i.e. higher Return Of Assets (ROA).

How to make a gold IRA investment is an easy enough procedure. All you have to do is make a self-directed account with a trust company i.e. a trustee. In such an account you can make investments according to your own choice and the trustee makes all your transactions according to your specifications. The paperwork for opening such an account is forwarded to your address or through e-mail.

After the account is fully up and running, funds are put in it through rollovers or transferring assets. When this is done, you can purchase gold through the trust company from a secure merchant. The gold is then transferred to the trust account you own and the gold backed IRA are stored in a secure vault of a depository.

Transferring and Rolling Over Your IRA Into Gold

How to purchase gold into your trust account?

There are 2 options for this procedure. First is a “transfer” and the other is “rollover.” How these two work is explained below in turn.

You can “transfer” your IRA by which your gold backed IRA investment flows directly from your custody to another’s of your choice. You can make a direct transfer by writing a check from your own custody to the new IRA holder’s name and account to which you want to send these funds. Such transfers can be made many times and as much as you want. The other custodian is normally a trust company who then deposits gold into your trust account and thus you get your profitable gold IRA investment.

In the process of “rollover“, you turn your assets or funds that you get from your current retirement account to another retirement account, by making them your new custodians. In such a case, only a 60 day period is given to re-deposit the funds into the new account otherwise you will become liable to pay all taxes, interests and penalties that come along with any such new transaction. Such retirement plans rollovers are allowed once in each 12 month period and this will preserve the non-taxable status of your assets or retirement funds.

Thus including gold into such a retirement plan as your asset is a great option but this should be done with great caution under firm guidance of a reputable gold company which has well-known experience. What you should know is that rules and regulations that apply on gold backed IRAs outside your IRA are the same as those that apply to those that apply inside your IRA over owning them.

The Acceptable Kinds of Coins In a Gold Backed IRA

gold coinThe Internal Revenue Code (IRC) has mapped out certain precious metals that are allowed under the IRA for a gold backed IRA investment. The gold should have 99.9% purity while silver must have 99.5% purity. Platinum and Palladium are precious metals that must have 99.95% purity. An exception in gold purity rule is the American Eagle gold that has .916 net fineness. These pure bars have to be refined by exchange approved companies or institutions.

A list of approved bullion coins in a gold IRA are given below:

For Gold, the approved bullion formats are U.S. Eagle, Canadian Maple Leaf, U.S. Buffalo, Austrian Philharmonic, and Australian Kangaroo. These are manufactured in a variety of sizes from a range of one troy ounce to about one-tenth of a troy ounce.

The approved American Eagle gold is also allowed for a Gold IRA investment but they are not advisable against all other precious metals in bullion format. This is due to the wide range of difference in their worth by different institutions and nations. It is better to have a gold backed IRA in the above mentioned format and by above mentioned institutions.

Gold backed IRAs are the new format of all retirement plans and other saving accounts due to its higher profitability and security in terms of loss or mutual ownership. Testimonials by various users of gold IRA investments have shown positive reviews about this procedure and they have also stated that their IRA accounts that were previously losing its value, when put in physical gold, proved to be the most profitable and secure form of asset for their IRA investment.

Gold backed IRAs are definitely a great option for individuals who would like to solidify their holdings without the fear of losing their investment’s value.

Welcome To Gold Backed IRA Investing!

We would like to welcome you to the wonderful world of Gold Backed IRA Investing!

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