Investing in gold is considered to be a wise way of making additional money especially when there is economic uncertainty. Gold Ira Investment is a strategic investment because of stability. It does not have the risk of losing money due to volatility in the market something that affects investment in traditional stocks and bonds.
If you transfer an IRA to gold, the assets are protected from inflation because it has financial backing. No tax will be imposed on investment when in storage. Past economic performance shows that when it fluctuates with uncertainty, the price of gold increase.
When you opt for gold IRA Investment, you should consider the following factors:
Pick a good account custodian
Choose an account custodian who allows inclusion of precious metals in your IRA. Find a custodian with good track record and excellent BBB ratings. If you do not pick such a custodian, you have to establish a self directed gold IRA account. When you have the desire to invest in physical assets such as gold bars or coins, it is essential for you to open an account with IRS-accredited depository for keeping the gold IRA investment.
You should take care not to handle the gold asset personally as IRS prohibits this. Your asset should be directly deposited into storage facility so as to avoid getting penalized. A gold Ira allows you to invest in other precious metals such as silver, palladium and platinum.
It is not all gold bullion bars or coins that qualify as gold IRA investment. They must meet the standards defined by IRS about fineness. Gold bullion coins are accepted if their fineness is at least 99.5% and are accepted as a legal tender. Only a few coins fit these criteria. These include Canadian Gold Maple Leaf coin, American gold, Austrian Philharmonics and Australian Kangaroo Nuggets.
Bullions a re a safer bet as they are 99.9 per cent pure. Gold collectibles are not accepted by IRS. Protect your gold IRA investment further by dealing only with the reputable dealers of precious metals. Do not make a mistake of letting down your guard as this will take a heavy toll on the retirement account.
Investing in physical gold
If you want to deal in physical gold without getting into trouble with IRS, you can use a Self Directed Gold IRA Investment.
Since a 401k does not permit handling of actual gold, you can roll over self directed gold IRA which does not have the restriction. The beauty is that you will not be restricted from holding any precious metals and you will be the one managing it therefore you will not seek advice of third parties who may not have similar outlook as you. In addition, you will get all tax benefits offered for gold investment plan.
When you take care of all the above factors, go ahead and invest in gold. Gold and other previous metals are valuable addition to your portfolio as you search for diversification and lasting security.