Is It Possible To Hold Physical Gold In An IRA?

The answer to this question is yes, it is possible to hold actual silver and gold coins in an IRA. The account is known as a Gold IRA, and it is not only legal but also a fantastic idea that is not known to many people. 

How Will Holding Physical Gold In My IRA Account Benefit Me?

As many people know, stock markets are often subjected to volatility and instability. The historical physical price of gold has maintained an opposite relationship with the U.S dollar and the stock markets. This means that traditionally, when either the dollar to the market goes down, gold will go up. This offers you with critical protection when it comes to the buying-power in association with your overall retirement savings. 

The Shifting Price Of Gold

The prices for gold per ounce over the years have ranged from $255 in 1999, to an all-time high of $1,839 in 2011. From the beginning of June 2019, gold was trading for $1,326 per ounce. Even though the growth is regarded as significant, there has been a bit of retrenching. 

The Gold IRA is one of the IRAs (investment retirement accounts), that provides a way for an investor to own assets such as silver, palladium, platinum, silver, or golf in physical form, rather than the more common assets such as bonds, stocks, and cash, where the standard IRAs are limited. The Gold IRA was created by Congress in the year 1997.

The Growing Trend Of Gold IRAs

The Gold IRAs are attractive for the investors who are interested in diversifying their retirement portfolios. Due to the fact that prices for gold typically move in a direction that is opposite to the paper assets, the addition of a gold IRA to retirement portfolios offers a type of insurance policy to combat inflation. This is regarded as a more balanced approach, which smooths out risks, particularly over longer terms. 

In previous years the demand for the gold IRAs was minimal as it involved highly complicated transactions. The investor would first need to find either a custodian or trustee for the IRA, in addition to an approved-depository. The investor would then need to purchase approved precious metals such as gold or silver and then have this transferred into a depository in such a way that the custodian or trustee is able to account for the deposit.

However, since the 2008 financial crisis, which resulted in the Great Recession, gold IRAs have increased in popularity. The record sales in gold, along with many companies emerging to broker these transactions, have paved the way for investors to invest in Gold IRAs. This has resulted in vigorous gold IRA growth. See our full guide to the gold based IRA for more information on the best companies to invest with.

Here are a few points to consider about Gold IRAs:

– The Gold IRA has to be a self-directed IRA

– Gold IRAs have the potential to serve as hedges against inflation

– The Gold IRA is linked with more fees when compared to Roth and traditional IRAs

When it comes to Gold IRAs, it is important to know that there are custodians that are untrustworthy who may be stealing from customer accounts or committing fraud in the way of selling precious metals they actually do not have. 

If you are thinking about a gold IRA, talk to a trusted financial advisor to find out how these precious metals can fit into your overall goals when it comes to your portfolio. As a rule of thumb, it is unwise to put “all your eggs into a single asset basket”. If gold appears to be one of the best options for you, many financial advisors will suggest not exceeding one-third of your overall retirement funds into a Gold IRA.