Gold has been the most coveted mineral ever since we recognized its value almost a millennia ago. The reason is that gold is a mineral that doesn’t oxidize, thus its value and weight do not lessen. Other than that, this page has stated that gold is scarce, and extraction comes at hefty prices as well, thus its relatively expensive value in the market. Not to mention its malleability when melted under the flame, making it formable into attractive pieces, such as jewelry and wedding rings.
A large diamond held up by a beautifully polished gold ring, that’s understandable, right? But did you know you can invest in gold in the form of an IRA? It’s surprising, the thought of investing in something other than stocks. But it’s a great investment to do if you’re anxious about the rise and fall of stocks and bonds in the market. Investing in Gold through an IRA has security and certainty other investments never had before.
1. What Is A Gold IRA?
Let’s start with the IRA first. IRA means Individual Retirement Account, and it is a savings account offered by many financial institutions, mostly for those seeking something to have after their retirement. It is a type of account that can either delay or be tax-free, which is desirable as a long-term investment.
Gold IRA, on the other hand, means investing your money on physical assets, such as gold bullion, instead of stocks and bonds. This came to be after market analysts noticed the trend of gold in the market over the years. According to this report: https://blogs.worldbank.org/opendata/gold-shines-bright-throughout-covid-19-crisis, a pandemic (the Covid-19 outbreak), and other disasters can potentially help the value of gold rise. It seems that unlike their paper counterparts, this mineral is unaffected or oftentimes inversely proportional to the stock market. As of now, its price has exceeded $2000 an ounce.
Because of this attitude, many stock analysts have announced gold to be a great choice for long-time investments like IRA. To add, it also has corrosive-resistant properties, which assures you its value never diminishes. Gold can drop a tiny bit but never stand on a zero-value.
There are many things to know about an IRA, and how it works. To get more information about it, you can head over to a page found here to gain more knowledge on IRA investments that includes gold. Knowing more about the situation can gain you many advantages and can potentially help you if ever you decide to make an SDIRA (Self-directed IRA).
To go about having an IRA, it’s a requirement according to the IRS (Internal Revenue Service) to have a custodian. A custodian can be in the form of a bank or trust firms, which are responsible for holding your assets safe. They’re not responsible for searching for gold dealers, as it is the investor’s discretion, but many of them know reputable and trustworthy sources which they can share with you.
2. How To Find A Good Custodian?
It is natural to want to be sure that the company that holds out assets won’t just disappear like bubbles along with it. It is understandable due to the fact many scammers and hustlers exist in this part of the market as well. That’s why it’s imperative to know the signs of a good custodian when finding one. Your ideal custodian will have these characteristics:
Legal And Properly Licensed
This is a no brainer for most of us, but it’s surprising to know many of those who dive into investment don’t bother to look into the custodian or trustee they chose. This can pose as a great err on their part.
With this thought, it is important to make sure your custodian is licensed, authorized, and intellectually armed for any questions you might ask them. Though they don’t serve as your financial advisor, it is still important to ask them all about their company, ask for reviews, and maintain eye-contact most of the time.
Specializes In Your Choice Of Asset
Enter Gold IRA. Take note that not all custodians take gold IRA as a valid asset. That’s why it’s always important to ask or check their site for their list of allowed assets. It’s even better if the company you chose is a company that specializes in gold IRA. That way, you can be sure they’re well-equipped to deal with problems and other circumstances that may happen when handling your gold.
If it isn’t, don’t worry. You can always ask for a list of their most popular assets and base your decision from there. Just because the IRA has allowed gold to be in your IRA, doesn’t mean all custodians allow it as well. Have a good, long talk with them before deciding.
Frequency Of Transaction
The frequency of transactions can affect the performance of your IRA if your fees do not meet eye-to-eye with your investment strategy. For example, the custodian’s fee schedule is transaction-based. And your investment strategy requires you to have transactions very often.
Besides, you will want to make sure that the custodian can bounce back quickly from a hurdle. Your custodian must have a quick, responsive team that will build your investment strategy without waiting for the last minute.
Impeccable Customer Service
For a company, their customer service can be likened to a woman’s dress. If the dress is poor and dirty, you’ll notice it right away. This in turn will register in your mind and immediately associate it with the company’s overall reputation. That is why reputable and excellent companies put extra effort into their customer service because this can be considered as the first meeting between the client and the company. And you know what they say about first impressions: They last.
Another thing to note is how seamless customer service can bring back repeat customers. A report about this says that 84% of companies that have great customer service have an increase in sales, and most customers that add to this are old customers that enjoyed the service. When looking for a custodian, notice how they handle and value you. It is most likely how they see you as a customer. If they treat you poorly and respond slowly to your concerns, they aren’t worth the fees you pay them.
The Site Is Easy To Navigate
The last thing you’d want in this experience is a site that doesn’t load or is down most of the time. A good custodian won’t just focus on being good with words, they should offer their services holistically, and in the highest quality possible.
Having a site that you won’t get lost in, and where you can monitor your assets easily is attractive to both tech-savvy customers, and the elderly clients that aren’t used to using the net. Companies also view this as a potential reason for customers to leave the partnership, so a site 24/7/365 is a sign of a company receptive to customer concerns.
Reasonable Fees
This type of investment leans on the pricier side, and that is because of fees. There are different prices you can have from this investment. One can be your dealer’s mark-up, which can be 20% of the original price. Another one is mandatory, called the retirement account set-up. It’s a one-time fee paid to set-up your first IRA account, but it may cost a pretty penny because of your choice of a physical asset.
There are storage fees as well, and it is also mandatory because this will be where your asset will be kept safely. With all these fees, a good custodian will most likely consider this and charge you with a reasonably high fee. As the assets are gold, they cannot charge you for a low price, unlike stocks and bonds which have lesser fees. But it doesn’t mean they will rob you blind.
Talking with the company about the fees, you may have a chance to observe their actions and words. Their willingness to break it down to show you why it is so expensive is a good sign the company is customer-centric.
People Say Good Things About Them
At the end of the day, what other customers say about them will weigh greater than what you’ve dug up. This is why companies value testimonies and word-of-mouth so much because it can make or break them. Taking this into consideration, it helps to read some reviews about this company, and if they have a site you can check it out on the net.
You can also check out blogs and other review sites that specialize in gold IRA companies. Take note of how many complaints it has and their nature. If the complaints weigh out the praise, or if a handful of customers have reviewed them as a fraud, it’s better to cross them out of your list. Companies need to sell themselves to you more as educational and less in selling or pushing their paid services.
3. Why Should I Invest In Gold For My IRA?
So why should you invest in a gold IRA? Here are some reasons for you to consider upon when deciding on this venture.
Gold is in demand ALL THE TIME!
A millennium has passed since gold found its niche in the world as a valuable asset, but until now it is still as precious and sought-after as it was during Cleopatra’s time. During ancient Egypt, those adorned in gold are considered beautiful and expensive, and it honors their gods, so offering it is the highest regard you can give them. Only queens, kings, and wealthy merchants ever had the opportunity to do this.
Today, it might not be offered to gods, but gold is still a precious commodity. It is always purchased by many types of customers, some for manufacturing purposes, others for possession. That’s why buying gold will assure you that for all time, you will have something someone will want to buy no matter what circumstance. Plus, the price rarely goes down, and when it does, you won’t even notice it.
Inflation doesn’t affect it.
Unlike dollars, which lessen in value as time passes, gold does not face such devastating conditions. This is one of the main reasons why gold is being purchased by many investors, and why you as a planning IRA investor, should consider it. Inflation is one of the negative phenomena many investors face, and by buying this shimmering mineral, you don’t have to watch your precious money slowly drop in value.
The more gold you possess, the more it becomes expensive.
As gold is one of the most limited minerals on earth, having it means you have a valuable asset on your part. And the more it becomes scarce, the more the demand for it increases. This will serve to your advantage, as gold prices increase this way.
This becomes a steady investment for many investors. Instead of watching your stocks and bonds fluctuate on screen and be dismayed, with gold in your IRA, you can be assured it never drops and gives a steady rise in profit instead.
It can diversify your portfolio.
The way to avoid being on the losing side is to have both sides. While that doesn’t apply to sports, it sure is for investment. Having both paper assets and physical assets such as gold will assure you a win-win situation. While the one plummets, the other flourishes, thus by having both opposing sides, you won’t have a day in your investment where you came out the loser.
Gold IRA & The Future Of Investment
According to many market analysts, gold just steadily increases in value and price. Unlike others that plummeted, especially this Covid-19 pandemic, gold bloomed like spring buds under the warm sun. With this trend, it is safe to say that investing in gold IRA will indeed be part of the future of investment, especially when the pandemic doesn’t seem to get any better in many parts of the world. Thus, it’s your ultimate choice. Will you try this chance to have a better profit during your retirement and break off from tradition?
