If you’re in the market to put some of your hard earned money into gold or a gold IRA, you’ve no doubt noticed that finding useful information can be kind of tricky. Welcome to goldiral.com. Our mission is to provide you with well researched information regarding a gold IRA rollover as well as investing in gold or precious metals in general.
Some companies hire pushy salesmen or attempt to “bait & switch” their customers once they’ve come into contact with them. Your retirement money and gold IRA account is much too important to be messed around with. Therefore only the most trustworthy companies with proven track records and irreproachable customer service are worth your time.
There are a lot of companies online that are all fighting for your attention (or more specifically, your money). At the end of the day, the onus is on you, the investor, to contact multiple companies and decide which one is best suited for your particular situation.
If you are looking for more information about gold IRAs in general, keep reading. We have gathered some valuable information below and have done our best to lay it out in a comprehensible manner.
What exactly is a gold IRA?
What is the difference between a traditional individual retirement account (IRA) and a gold IRA account? At their core, they are pretty much the same. As an investor, you can put money into one or the other and enjoy the tax benefits that come with them.
However, the main difference between both is that the gold IRA is limited in the assets that can be included in it. As the name suggests, it can only be comprised of gold. Not just any gold is allowed though, for example jewellery and some rare coins cannot be included. As a general rule, most gold bullion is admissible. Once again, talking to a company such as Regal Assets that specializes in gold IRA accounts will shed some light on what can and cannot be included.
Rules and restrictions
There are restrictions of course, but they mostly apply to how the funds in the IRA/gold IRA are used or how/when they are withdrawn. For more information on the rules and regulations, visit the official IRS website on IRA on investment retirement accounts. It is of course in your best interest to follow these rules as ignoring or going against them can have quite unpleasant and costly consequences.
Citizens of the United States are obviously more concerned with gold IRA accounts in particular. However, it is also possible for US citizens to transfer funds from their 401k accounts into gold or even other precious metals. This process is called a rollover and more often than not, individuals opt to transfer those funds into a gold IRA.
Why should you buy precious metals right now?
As with any type of investment, it is best to get in while it’s still “cheap”. Well gold is no different. Of course, starting a gold IRA ten or twenty years ago is the best situation, but what good is hindsight in the “here and now”?
So, the next best time to buy up as much gold as possible is immediately. Consider this. The World Gold Council has recently published a report stating that 2013 marked the fourth consecutive year to see a marked increase in the demand for gold.
And as any market states, whenever the demand goes up, so does the price. There is only so much gold on this planet of Earth which makes it a fixed resource. Humans can’t make more gold like they can money. So, when the supply drops due to the high demand, availability goes down and prices go up.
So, given that people are investing in gold at an unprecedented rate and that the gold IRA business is booming, what do you think will keep happening to the price of gold? It has nowhere to go but up.
Who is buying up all that gold?
A breakdown of the countries buying up gold the most. China and India are buy far the biggest buyers.
Individuals have combined for well over 3500 tons of gold. That represents over 170 billion US dollars. But it’s not just gold coins, bars and bullion that is more in demand than ever. Even jewellery is soaring to new heights in terms of price and demand.
But it’s not just individual investors buying the stuff or opening gold IRA accounts. The central banks of the world as well as many countries have been buying gold at a rate never seen before. Countries like China, India and even Turkey have increased their demand during 2013.
Advantages of investing in a gold IRA
One of the best things about putting your money into a gold IRA is the fact that you have full control on what happens with your investment. This type of investment account is called self-directed, meaning that you have the final say regarding what goes on.
On the other hand, a traditional IRA account often doesn’t provide this kind of freedom. Most of the time they are managed by some third party that you have never met and therefore don’t have much interest in getting you the most out of your investments.
But the biggest advantage of a gold IRA is…
Let’s not dilly dally, there’s not time. The main goal of investing, no matter in what, is to eventually see a positive ROI. So in that regard, how does a gold IRA fare? Given that most (if not all) well known investors keep on hammering the importance of investing versatility, how can investing primarily in gold be advantageous at all?
Gold is on the rise, has been for a long time.
To evaluate whether investing in a gold IRA can bring you a profit you just need to take a look at its price over the past few years. Gold itself has seen a rise in value of 524% between 2001 and 2012.
To put that into perspective, say you invested 25,000$ in gold at the turn of the millennium. At the end of 2012, that same amount of gold was worth approximately 156,210$. By any standard, that is an astonishing increase that no paper asset can come close to.
Gold versus S&P500 since 1971. Except for a brief 4 to 5 year period, gold has always been higher.
The only other way you could see an increase that rivals that of gold is if you invest in a start-up company that explodes over the years after purchase. These days, it seems that tech companies are the most likely to take off in such a manner, think facebook and twitter. Or think how much money you could have made had you invested in Apple or Microsoft stock in the seventies? Of course, selecting those sorts of investments is kind of a crapshoot and requires an in depth knowledge of very specific topics and markets that not everybody possesses.
But let’s get back to the topic of gold IRAs. You see, gold hasn’t stopped rising in price either. In fact, the price of gold has been on the rise since the end of 2012 still and financial experts predict that this increase has no end in sight