Benefits of Opening a Gold IRAAccount
Why open a Gold IRA?
There are four types of precious metals that can be purchased as an investment: gold, silver palladium and platinum. Silver is another viable investment. However, with a spot value of $20 an ounce a wealthy investor would have several hundred pounds to reach the 20% mark in his or her portfolio. To store that amount of silver, the price would require a significant portion of an investor’s retirement funds. Silver is stable but not very practical. Palladium is much more expensive than silver, but its spot value fluctuates tremendously and it can often drop by up to $25 per ounce in a single hour. Platinum is rarer than silver, but it’s much more stable than palladium. It can sometimes drop below the spot prices of gold. It is possible to rollover gold into a gold IRA account, which is why it is the most practical. Opening a gold IRA is a wise investment decision. You can get the best guide about gold IRA rollover in this sites.
Easy, safe and secure tax relief
Congress passed the taxpayer Relief Act in 1997. It allowed for the inclusion the four precious metallics in an IRA. A precious metals IRA cannot be considered a self-directed IRA. It can only include investments in gold, silver, platinum, and palladium. A precious metals IRA investment does not allow for all types of gold. It is therefore important to be aware of what type and amount of gold is allowed. A precious metals IRA can also be used to include gold bullion or 24 Karat bars. These bars need to have an authentication stamp from one of two authorities: The New York Mercantile Exchange(NYMEX) and the Commodity Exchange Incorporation(COMEX).
You have many options
Certain 24 Karat or 22 Karat gold coins may also be included in an IRA according to the IRS. The American Eagle (Canadian Maple Leaf), and the Australian Philharmonic are some of the most commonly included gold coins in a precious Metals IRA. Also, the gold must be kept at an IRS-approved bank or depository. A storage fee will be applied. A custodian must be appointed for the gold IRA accounts, as with all self-directed IRAs. Also, the custodian may charge fees so it is best to shop around for prices and compare services.
Protection against Inflation
In 2008, thousands lost their entire lives’ savings because they had all or most their money invested in paper. It meant that they had no assets and all of the value was in stocks and bonds. None of these assets can be backed with gold and are subject to inflation. Even though precious metals such as gold experienced a slight drop in their value following 2008 economic collapse, they actually appreciated in value. Gold is now the gold standard. In fact, countries that were once poor like India and China have been buying every ounce possible of gold.