The Benefits of opening a Gold IRAAccount
Open a Gold IRA Account
There are four types of precious metals that can be purchased as an investment: gold, silver palladium and platinum. Silver is another viable investment gold IRA rollover fees. However, with a spot value of $20 an ounce a wealthy investor would need to invest several hundred dollars in order to reach the 20% mark. To store that amount of silver, the price would cost an investor a significant portion of their retirement funds
. Silver is stable but not very practical. Palladium is significantly more valuable than gold, but its spot value fluctuates tremendously and it can often drop by as much $25 per ounce in a single hour. Although platinum is more common than gold, its spot prices are less stable than that of palladium. It can sometimes drop to below the spot gold price. It is possible to rollover gold into a gold IRA account, which is why it is the most practical. Opening a gold IRA is a wise investment decision.
Easy and Safe tax Relief
Congress passed the taxpayer Relief Act in 1997. It allowed for the inclusion the four precious metallics into an IRA. A precious metals IRA does not have the same structure as a self-directed IRA. The investment can include palladium, silver platinum and gold. A precious metals IRA investment does not allow for all types of gold. It is therefore important to be aware of what type and amount of gold is permitted. A precious metals IRA can include gold bullion or 24 Karat bars. These bars need to have an authentication stamp from one of two authorities: The New York Mercantile Exchange(NYMEX) and the Commodity Exchange Incorporation(COMEX).
A Wide Variety of Options
Certain 24 Karat or 22 Karat gold coins may also be included in an IRA according to the IRS. The American Eagle (Canadian Maple Leaf), and the Australian Philharmonic are some of the most popular gold coins included in a precious-metals IRA. Also, the gold must be kept at an IRS-approved bank or depository. A storage fee will be applied. A custodian must also be appointed for the gold IRA accounts, as with all self-directed IRAs. Also, the custodian may charge fees so it is best to shop around for prices and services.
Protection against Inflation
In 2008, thousands lost all of their savings due to having all or most of the money they had invested in paper. It meant that they had no assets and all of their value was invested in stocks or bonds. These assets do not have the backing of gold and are susceptible to inflation. Even though precious metals such as gold experienced a slight drop in their value after the 2008 financial collapse, they actually appreciated in value. Gold is the gold standard. In fact, formerly poor countries such as India and China have been buying every ounce possible of gold.