Choosing A Gold IRA To Diversify Your Investment Portfolio

gold coinsRegardless of the stage one resides in their career, it is never too early to begin setting aside a strategy to sock away money for retirement. Of all of the options available, one of the safest is an Individual Retirement Account (IRA) specializing in gold. Gold has been one of the most secure investments for centuries since it retains its value, outperforms other savings options such as real estate and the stock market, will continue to increase in value based upon demand, and is more reliable than the central bank.

Even if your present retirement fund does not permit gold as an investment, the Internal Revenue Service (IRS) permits one to open a second self-directed IRA for alternative investments such as gold. This includes gold coins such as the American Gold Eagle and Canadian Gold Maple Leaf, along with the ability to invest in an Exchange Traded Fund (ETF), or investing in an individual gold mining companies stock.

Setting up an IRA is not cumbersome at all, namely one can roll over an existing retirement fund into a gold IRA. Remember there can be tax implications so ensure one seeks the guidance of a tax professional. There are many types of gold retirement accounts so set aside time to review what each has to offer so one can be certain the choice meets their individual need. A gold IRA investment can include both physical gold and precious metal as deposits. In addition, gold IRA’s can come in the form of a mutual fund, stocks, and ETFs’ that are tied to currency. Gold is a tax free investment and can be recognized by the issuing government as currency, and thus used as legal tender. A storage cost does come with investing in physical bullion despite never taking actual possession of it.

A gold IRA will provide the investor with a safe and secure investment option to diversify a portfolio. Demand continues to rise in the past decade since the central banks are holding on to gold versus selling it off. This is due to the reduction of gold deposits in the earth plus gold mining companies are mining less aggressively since costs to do so have risen. The security gold can provide an investor was exhibited by the increase in price for an ounce of gold. In 2004, an ounce of gold sold for $400 versus the present day price at nearly $1,200. All earnings are retained tax free until one decides to withdraw the earnings down the road.