Gold prices have increased significantly since 1998. At 171 per cent, it commands a steady lead on all the three major stock indices. It is therefore clear that IRA investing in gold has healthy retirement benefits. Unlike Dow Jones and NASDAQ, gold has proven to be stable in terms of purchasing. This makes it perfect for a long term investment. During economic melt downs, investors try to preserve their assets by investing in gold. History shows that gold prices tend to rise during these economic fluctuations. Its value increases over traditional investments such as stocks and bonds.
There are two ways of IRA investing in gold. These are paper and physical gold. Paper is a traditional form of investment and involves stocks and ETFs. Physical gold involves coins and bullions. Stock trading of gold is possible through the internet. One advantage of this type of trading is that investors are not taxed until they start withdrawing the money. IRA investments allow investors to move in and out of gold stocks without paying capital gains tax.
Another way of investing in gold is through regular gold funds and exchange traded funds. In this method, investors will not enjoy the moves associated with individual stocks. Trading will be limited, and they have the option of leaving their stock for long term investments.
Another way of investing for your IRA is through physical gold. This method attracts storage fees, and investors cannot get any returns until they sell them. Gold bullion bars retail at lowpremiums than gold coins. Gold bars are therefore ideal for IRA investments. Gold bars vary in weights from 1 ounce to 1 kilogram. This is not a suitable investment method and is not recommended by many investors.
With the uncertain economy trends, investing in gold is a sure way of keeping wealth. It will ensure a safe and secure future for investors.
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