With gold making impressive gains over the last couple of years, it is obvious that many Americans have begun to seek the shelter that precious metals provide in troubled economic times. Since 1997’s alterations to Federal statutes governing Goldco IRA, individual retirement accounts can now contain gold and other metals as part of their portfolio. As a result, millions of Americans have now invested at least part of their IRAs in the metal – and watched as their account values have skyrocketed. With a gold IRA you get the security that gold offers while still remaining within the overall individual retirement account structure.
It’s called diversification
The key to successful investment in your gold IRA is to ensure that your account remains diversified with a healthy balance of CDs, stocks, and metals. Though many people swing to one extreme or another in the balance of their portfolio – opting for far too many stocks or far too many CDs – the idea is to manage your account in such a way as to provide an equal measure of secure growth and larger gains. Certificates of deposit provide that secure growth, but at a far lower rate of growth than can be obtained with riskier investments such as stock purchase. A gold IRA holding can ensure that you have that added element of security and growth in your overall fund portfolio.
Gold is stable
The best part of a gold IRA focus is that gold is guaranteed to hold most of its value. While it will always rise and fall in accordance with various factors at play in the marketplace, the fact is that gold also has a certain range below which it can be expected not to fall. That makes it far safer than the average stock purchase, while still allowing room for ample growth when gold prices rise. A gold-backed IRA account is therefore one of the best and most secure forms of retirement planning that people can use.
Which gold is acceptable?
As you might expect, not every form of gold can be used in a gold IRA. Current IRS rules limit the ownership of gold within an IRA account to those with a certain degree of fineness. Gold bars must have a fineness measuring more than 0.995 or better, while gold coins must be as fine as 0.9999 or more. That leaves some gold coins unavailable for inclusion within a gold IRA plan, most notably the Gold Eagles and various foreign coins.
The truth of the matter is that the stock market may never recover from its heady days in the Nineties. The rise and subsequent fall of the dot com industry provided a hard lesson to investors that the wroth of every company must actually have some basis in reality. This is one of the main reasons why so many people have turned to gold IRA options to buttress their retirement savings, as stocks are seen as less reliable and companies less trustworthy than ever before. With gold, you never have to wonder which accountant is doing what with the books.