If you are at or near retirement age, you no doubt want to secure your nest egg and grow it securely. However, you might be wondering about precious metals and how you can invest in them. You might also want to know the benefits of doing so. To help you make the best choices for your investments, here is a primer on making an investment in precious metals:
Investing in Precious Metals Pros and Cons
For ages, gold and silver have been assets that people have used because of their intrinsic value. While paper currencies (a recent invention) can go up and down in value and are only worth what the government says, gold and silver have real tangible value as metals used in manufacturing, medicine, jewelry applications, and stores of value.
Potential cons of precious metals, however, can be putting too much of your portfolio in them and overspending all at once. Like any investment, you should seek professional consultation and invest in the proper amount to balance your portfolio.
Benefits of Investing in Precious Metals
The first major benefit of precious metals is that they act as a hedge against inflation. While the U.S. Dollar may erode, you can be rest assured that your gold and silver will hold their value. This makes precious metals incredibly attractive to investors as a defensive strategy to protect their downside.
They also let you diversify your portfolio in a less volatile way to protect against catastrophe. During times of crisis or upheaval, gold and silver can be used to trade for other items of value even if a paper currency loses value.
Precious metals are also tax deferred investment, meaning you don’t pay a penny on them until you take them out. This benefit, in addition to your ability to put your hands on the physical assets, makes them a great strategy to have peace of mind.
What are the Risks of Investing in Precious Metals
Like any investment, there is some risk to precious metals. However, with gold and silver, this risk is primarily accrued by not seeking advice from professionals who can help you purchase the correct amount to balance your portfolio. With the right approach, gold and silver are safe haven assets.
How Do You Buy Gold and Silver
Luckily, you only need to fill out some simple paperwork and make some simple decisions to purchase gold and silver. One of the most popular ways to do this is to use a professional company to transfer your IRA into gold and silver.
Precious Metals IRA Rollover
- How to Roll Over to Gold IRA
Taking your IRA funds out of risky investments and putting them into gold and silver assets can be a very simple process that also gives you more control over your nest egg. Many people have seen their financial legacies go down in value when a market shift happens.
This is usually due to having too much money in the stock market instead of diversified with physical assets like gold and silver. Many people believe this is a difficult process, but it is really quite simple. Using a professional service, you can simply have them roll your IRA over into a special Gold IRA wherein you enjoy a number of benefits. All this requires is some paperwork and a few phone calls to get going.
Your precious metals can be stored in a physical vault across the country, such as a Brinks depository. Depending on your preferences, you can select tax deferred options that let you transfer money between your retirement accounts by getting a check in the mail from your current IRA and sending it to your new service provider.
If you use a reputable company, friendly representatives will help you through the entire process with ease so you don’t have to worry.
Which Precious Metals are Eligible
At this time, Gold and Silver are the principal metals available to invest in. They have produced the best results for investors throughout history.
The first options to consider are ETFs (exchange traded funds). These are like owning stock in gold and silver and are very liquid.
You can also purchase actual bullion, solid precious metals, that are stored in safe facilities. This is often recommended to investors who want to have a tax deferred investment. Keep in mind that if you take physical possession of the metals, you could be liable for taxes.
Thirdly, you can choose to invest in mining shares. These are stocks of companies that actually dig the metals up out of the earth. While not uncommon, they do bring certain risks that owning the physical metals do not.
If you are looking to secure your retirement nest egg, and don’t want to take major risks, investing in gold and silver could be a great choice for you. It is simple process to roll over an IRA into a Gold IRA to ensure you are getting the most protection possible from your assets for now and into the future. Don’t hesitate to contact a professional to help you decide the best and easiest way to proceed with this.