Reasons to Choose a Gold IRA Investment
Serious investors have several reasons to invest in a Gold Individual Retirement Plan. One of the main benefits to investing in gold is the fact that the value of gold is somewhat recession proof. With the recent pumping of the Fed the dollar has lost much of its value. By investing in a Gold IRA your investment is shielded from the devaluation of basic currencies.
Investing in gold may be done in a variety of ways. Whether you are investing in gold buillon, gold coins, or gold bars, you should consider the tax benefits of a Gold IRA. A Gold Individual Retirement Account is handled the same way as your typical IRA, but instead of being backed by real estate or stocks, it is backed by Gold. The fact that this investment is backed by something tangible and valuable like gold has lead many investors to rollover their retirement accounts into Gold IRAs. The actual gold is kept in an IRS depository and may be sent to you when you are ready to liquidate the IRA. You must be careful of the tax implications when you choose to cash out the IRA. If you choose to take the actual gold, the gold may be taxed at a higher rate because it is taxed as a collectible. Most investors will chose to liquidate the gold within the gold IRA before cashing out in order to be taxed at the lower rate.
Unlike paper currencies, gold is limited in quantity which further insures the value of gold in the future. Recent events in Europe have shown that the collapse of a currency during these unstable times is not some far fetched notion, but a very real possibility. In contrast to the fluctuations in currencies around the world, the precious metal market values have remained relatively stable showing steady growth over the past 10 years.
Changing your IRA to a Gold IRA
If your current individual retirement plan is paper based as most IRA’s are you may participate in a gold IRA rollover to change you investment to precious metals. The criteria required for precious metal investments vary according to the precious metal you are investing in. Gold is 24 Karat unless you are investing in Gold Eagle coins which are 22 Karat. The gold must also bear the hallmark of an approved refiner. If you invest in platinum it must be 90.9% fine or higher. All of these considerations will be automatically taken care of when you are dealing with a reputable Gold IRA Company.
Gold IRA Investment Companies