If the recent banking crisis has you considering alternative investment options, now might be the time to look into a precious metals IRA.
What Is A Gold IRA
Often referred to as a “Precious Metals IRA,” this self-directed IRA allows you to hold gold and other precious metals as investments. Precious metals IRAs are typically bought through a precious metals custodian, like Goldco. They work similarly to a traditional IRA. You use pre-taxed dollars from a conventional IRA, post-tax from a Roth IRA, or funds from a 401K rollover account.
Gold IRA Performance
The reason retirement savers look to include precious metals in their portfolio is their performance during times of high inflation and market swings.
“Looking at the last 15 years, gold has outperformed the stock market. In the 15 years from 2005 to 2020, gold increased by 330 percent. During the same time, the Dow Jones Industrial Average increased by only 153 percent. During the last two years, 2021-2022, gold has outperformed stocks due to worldwide inflation and geopolitical uncertainty,” according to Investopedia.
“Gold is a tangible asset that anyone can own and hold, and it can offer stability against inflation, financial turmoil, and economic downturns,” according to Goldco.
Reasons To Consider A Gold IRA
So how do you know if you are a good candidate for investing in a Gold IRA? Here are some things to consider.
1. Your Age
Starting from the time you first open a self-directed IRA, the account must be established for a minimum of five years. You must be 59 and a half or older according to IRS rules.
2. You Have Access To The Minimum Amount
A Gold IRA through Goldco has a minimum requirement of $50,000 in a Gold IRA account. However, they recommend that diversification is important for a healthy portfolio.
3. U.S. Citizen
This may seem like an odd qualifier but self-directed IRAs are unique to United States law. Precious metals are just one type of self-directed IRA. This type of investment is held by a custodian. Other self-directed investments could include real estate, commodities, or even crypto assets.
One Reason To Avoid Gold IRAs
Gold IRAs are not for everyone. In addition to meeting the minimum age or investment amount, you may not be a great candidate if you day trade stocks or are looking to turn a quick buck. Precious metals may not be a get-rich-quick type of investment. They can be for folks who will give the investment time to mature.
IRS Rules For Gold IRAs
The Internal Revenue Service does have a few rules when considering a precious metals IRA. The metals must be 99.9 percent fineness. If you are investing in coins, they need to be free of any type of damage and not have been in circulation. Metals should be made by an accredited mint and could have a letter of authenticity. They also should be in their original package.
Also, the IRS does not want you to keep these metals at home. They should be stored in an IRA-approved depository. A custodian can help you with storage arrangements.
Why Consider Goldco
Goldco has been helping individuals for more than a decade. They have an A+ rating from the Better Business Bureau. Goldco also has thousands of five-star customer reviews. They have helped folks invest more than one billion dollars in precious metals. Goldco has the highest industry buy-back guarantee when you are ready to sell your precious metals.
“I believe that there is always a good time to invest in gold and silver,” says Goldco’s CEO and founder, Trevor Gerszt. “When markets are down, precious metals tend to rise in value. When markets are more stable, precious metals continue to steadily grow in value. Precious metals are my passion, and Goldco is committed to helping people with precious metals ownership to protect their wealth.”
Right now, Goldco is offering 10 percent back in free silver, on all new qualifying accounts.
If you are looking for a diversification investment opportunity, a Goldco Gold IRA may be a great resource for you to look into.