Why You Should Consider Precious Metals IRA Investing

With the tumultuous economic climate we have been in the last few years, many people are confused about where they should invest their retirement funds. Many people have lost faith in the stock market, which is not very friendly to small investors. In addition, interest rates are so extraordinarily low, that yields on bonds and CDs are negligible. Rates are so low that the “return” you will get is likely to be less than the inflation rate, therefore, in reality you will be getting a negative rate of return on your investment. So, where can a person turn in order to safeguard their retirement portfolio?

Precious metals IRA investing could provide you with an answer as a complement to your other investments to protect your wealth and purchasing power. Precious metals consist of gold, silver, and platinum. We will focus most of our attention on gold, but the other two are also viable choices.

precious metals ira investing

precious metal in ira

Over the past decade or so, gold has gone up more than 400%. There are very few investments you could have made which would give you a better return than gold has over the past ten years. You may be wondering if this trend is likely to continue.

Nobody can predict the future for certain, but there is very compelling evidence that tends to support higher gold prices for years to come. Here’s why:

The two largest currencies in the world the U.S. dollar and the Euro are under assault. Both of these currencies are fiat currencies, meaning they are backed by no tangible assets whatsoever. Since the U.S. dollar is still the world’s reserve currency, we will primarily discuss the dollar, however, many of the problems that plague the dollar are also applicable to the Euro.

It is no secret that the U.S. government has been running up some incredibly large annual deficits of late. That is troubling enough, but the manner in which the U.S. is financing this extraordinary debt is even more troubling. In normal circumstances the U.S. Treasury will finance the nation’s debt by issuing Treasury bonds to investors. These investors are both foreign and domestic, but many of these bonds have been purchased by Chinese, Japanese, and Middle Eastern governments and investors. Lately, the magnitude of the debt that has been issued by the U.S. Treasury has been so large that they cannot find enough investors to buy all their bonds. The U.S. government has “solved” this problem by engaging in what is euphemistically referred to as quantitative easing. With QE the U.S. Treasury issues bonds and the Federal Reserve “purchases” the bonds. This finances the governments enormous debt and injects capital into the economy in order to stimulate it. The problem with this scheme is that the government is effectively just printing up more money. Although, the are not actually printing it, conceptually, this is what they are doing. If you hold your wealth in dollar denominated assets, it is effectively making your investments worth less, because the government is diluting the value of your currency, the dollar.

You can create a hedge against this type of fiscal hanky panky by investing in gold and precious metals IRA investing is a great way to do so. Gold has certainly withstood the test of time, since it has retained its value irregardless of governmental or currency vagaries and vicissitudes. For all of recorded history, gold has been valuable, and it is unlikely that this trend will cease, highly unlikely. Consequently, gold is probably the safest investment you can possibly have. When you invest in gold, you won’t have to closely monitor stock and bond markets in order to determine when you should move or withdraw your capital. You can rest assured that your gold will always have value.

With precious metals IRA investing you will be investing in a physical gold product, not a gold ETF, so you can be assured that your investment will be safe. Normally, you will be able to set up a gold IRA account with one of a number of different companies that buy and sell precious metals. Once you have established your account, the physical gold that you now own will be sent to a company that operates a highly secure gold storage facility. You will have to pay a small fee annually to the company that is storing your gold, but you will own physical gold, which is an investment that has certainly withstood the test of time.

Diversifying an investment portfolio with precious metals for your IRA is something to research thoroughly. I hope you will take the time to get educated like I did. One of the ways in which I learned was to request a free gold investment kit from Regal Assets and I’m so glad I did because that knowledge it gave me made me so much more confident about my investing decisions.

By Michael Brown

Retirement planning expert and rollover IRA to gold adviser.

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How Important Is It That Gold Did Not Drop Below 1200 For IRA Investing?

Well, we watched gold take another big drop recently. Bernanke implied that perhaps quantitative easing was over and this was one of things that had a negative impact on the market. I think a lot of people thought, OK, this is the big drop that’s going to really hurt gold IRA investing. But I watched the pricing and didn’t hit the panic button.

We watched gold values drop and come near that 1200 number. But the pricing flirted with 1200 but never went below it. And slowly but surely gold values went up. As of today, we’re back up around 1330.

gold chart 2014

ira precious metals

So how important was it that gold did not go below 1200? Well of course, like other amateur gold ira investors I’m glad it didn’t. And I thought this was basically the market saying we’re not giving up on gold yet.

For long-term investors like us we simply can’t get caught up too much in the short term market gyrations.

Part of the reason I don’t fret too much over precious metals pricing changes in the short term is that I know that these are reactions in the market to factors like the Fed, U.S. economic data and the possible easing of asset purchases. If I was trying to make a buck by, say, next month, these would be very important things for me to pay attention to.

But there are other factors that are actually much more important for me to pay attention to for investing in gold for an IRA since I am holding it for a long run . . .

One of the most important of which is the rising demand for physical gold in countries like China and India. Yes, it’s true that gold ETF’s have not done that well in China for instance. But remember that it is physical gold that that the Chinese really prefer, especially as they rise into the middle class. In fact, the World Gold Council actually estimates that China will surpass India as a consumer of gold this year.

At the end of the day, you just need to know which data and trends to pay attention to with regards to investing in gold for your IRA and which to not pay attention to. Learning how to do that will make you a better investor and frankly make it a bit easier to sleep at night.

And if you ever want more professional advice, give my friends at Regal Assets a shout. They were the guys I got started with when I first considered gold IRA investing. They have a free guide that will set up to make a really informed decision and I can’t think of a better way to get started.

Investing In A Precious Metals IRA

You really can’t avoid hearing about precious metals IRA investing these days. The commercials are on talk radio, they’re on TV; you see ads at your favorite websites, you get emails pitching gold or silver investing . . .

There’s a good reason for all of this. Anyone who wants to protect their portfolio, who is concerned about inflation, who worries about a falling dollar . . . or simply anybody who wants diversity in their investments is looking at adding precious metals.

Personally, one of the things that is causing me to look at gold IRA investing is our Federal Government’s policy of printing more and more money as part of a failed policy to stimulate the economy . . .

precious metals

precious metals in ira

You may not want to go ahead and respond to one of those commercials or ads just yet. Because you don’t feel like you have enough information. Now, I’m not saying ignore the ads, ignore the commercials and ignore the emails from the various dealers. In fact, there’s a gold IRA investment specialist that I’ve checked out thoroughly that I’ll recommend later in this article. But there are a number of authority sites that you should also check out as part of getting educated.

Anytime I have difficulty in making a decision it’s almost always due to the fact that I don’t have enough information yet. So with something as important as your investment portfolio and your retirement, I can’t stress enough the importance making an informed decision.

So with that in mind, I’ve taken the time to assemble a number of precious metals authority sites for you to investigate. Now keep in mind, some of these aren’t exactly targeted to the retail investor. And some of them frankly have some “white paper” content that’s very technical and scholarly. But they are all worth looking into to round out your knowledge of gold IRA investing. And since they aren’t selling any physical product, their perspective is valuable.

So here are the sites. I hope you find them helpful:

The American Numismatic Organization:
http://www.money.org/

The World Gold Council:
http://www.gold.org/

The Silver Institute:
http://www.silverinstitute.org/site/

The United States Mint:
www.usmint.gov

Bankrate’s site:
http://www.bankrate.com/finance/investing/invest-precious-metals-1.aspx

These are just a few, but they have more than enough great content to get you started.

Now, about the precious metals investment firm that I mentioned earlier. I’ve checked out a number of these dealers and while some of them are pretty good, my favorite by far is Regal Assets. This is because of their high BBB rating, their guaranteed 7 day delivery, their vast experience with retirement accounts and their overall customer service. But one of the first things that really impressed me was the free gold investors kit that they sent me. It took me at least a couple of hours to go through this thing, and after I finished I felt so much more confident about moving forward with my investments. So in addition, to spending some time at the sites I’ve recommended above, I highly recommend you get your free gold educational kit for IRA investing  and review here.