Investing in gold for IRA is an IRS backed way of diversification of your retirement portfolio through self directed IRA and qualified approved coins, bullion, and bars.
Some describe gold as a currency of fear. You will see it surging in times of economic stress or political turmoil. Just see what has been happening recently on the gold market due to the Ukraine war.
On the other hand, inflation erodes your savings, and gold provides a hedge against it. This is why diversifying and investing a portion of your retirement savings in physical gold and other precious metals may be a good idea.
Gold has a proven record of protecting funds in times when markets currencies falter. This is an extra layer of diversification that can bring some peace of mind.
Is gold a good retirement investment?
The production of gold grows all the time, the graph from Wikipedia shown below demonstrates this clearly. This is in tons per year during the last 140 years. But demands for gold increases too, so its market value goes up.
Some say that gold is too risky for retirees who need income-producing investments. They claim that gold’s value can swing wildly within short periods. This about short-time variations is true, see the chart below from Wikimedia. Those ups and downs show how its value changes all the time.
But you can also see that in the long run it has a great profit potential because its value increases all the time. This all in spite of variations mentioned above, and in spite of the fact that there is more and more gold on the market as you have seen.
If you compare the gold prices in 2000 and now, you will see the difference by more than a factor 6 or so. In other words, this is a 6X return of investment. In my another text you can see a similar chart with the inflation taken into account. So gold can make a valued addition to a retirement portfolio.
What about silver?
Silver is cheaper than gold, and it is also more volatile than gold. It is more used in industry than gold, so when there is expand in economy, there may be more demand for silver. In short, silver is more of a market-timing product, but here too you have a steady increase in value over decades. So this is yet another layer of diversification.
So can I put gold and silver in my IRA?
You can indeed include gold and silver (bullion or coins) in your IRA investment portfolio. You need to establish a self-directed IRA and purchase qualified IRS approved coins, bullion, and bars, and you will have real tangible assets.
Investing in gold IRA requires having a custodian who allows for this type of investment. But you do not have to be too much involved if you do all this through a qualified broker.
If you want to learn more about investing in precious metals (gold, silver, platinum, etc.), it is best to schedule your free online consultation by following this link. But if you want to read more first, please check my separate text about Augusta Precious Metals.
All in all, if you decide to go that way, the procedure is very simple and it is summarized in these three steps:
In summary, if you think of investing in gold for IRA it is best first to get as much quality information as possible. At Augusta Precious Metals they have an educational approach and you will know exactly what you are doing. They also provide a lifetime support.
Let me know what you think, there is a comment box below. Thank you for reading.