Many retiring retirement saver are looking for new ways to add a gold IRA to their investing portfolio. After all, with the recent news that gold prices are on the rise, and the fact that the value of the United States dollar has declined versus other major currencies, investing in gold is a good way to hedge against the uncertain future of the dollar. In addition to investing in gold, many investors have purchased mutual funds which include gold as part of their portfolios. However, gold IRA’s also offers certain advantages that are distinct from mutual funds, including tax advantages, limited participation, and flexibility. Also, gold IRA’s are offered by a number of different companies, which allows for extra choice and increased liquidity.
There are several different kinds of gold IRA available on the market today, and many custodial companies that offer these accounts do so through accredited institutions, which means that they must abide by certain guidelines set forth by the Internal Revenue Service. Among these guidelines are minimum deposit amounts, which vary from one company to the next. Another guideline that is frequently overlooked is the fact that most companies must also purchase gold from refiners who also sell gold to IRA’s. This fact may make purchasing gold from an IRA’s custodian a good option because it allows the custodian to receive cash in a transaction that does not require him to purchase gold from an outside source.
Most people tend to think that when they purchase gold IRA’s that they are only buying “paper” wealth, but the truth is that this investment has real, tangible value. IRA’s can be used to purchase fine gold jewelry, such as rings, bracelets, and necklaces, as well as gold coins and bullion. When you combine the liquidity of these gold IRA’s with the tax benefits that result, these investments have great potential for growth. In addition, IRA may also be used for direct investments in companies that produce physical gold, such as mining companies, and these direct investments can create a diversified portfolio that can help protect against financial problems.