Why consider holding physical gold in an Individual Retirement Account? Because, your retirement is at stake, and there is perhaps nothing more sacred to a working American. These are troubled times and gold has historically been the ultimate hedge against economic volatility and crisis. IRA accounts are traditionally dependent upon a select group of stocks, bond and/or mutual funds which are inextricably linked to the economy. And when the economy suffers, the value of many IRA accounts begins to plunge. Gold on the other hand has outperformed the Dow by over 300% over the past decade which begs the question … why wouldn’t you protect a portion of your retirement and secure your accumulated savings with intrinsic-valued physical gold and silver?
At First United Reserve we have been helping our customers protect their savings with physical gold for over a decade. Since gold historically moves counter to the direction of stocks, bonds and mutual funds, a First United Reserve Gold IRA can help reduce the volatility and risk of your retirement portfolio. A Gold IRA backs your savings with a solid asset. It helps preserve your wealth and protect your IRA dollars by adding the store of value of tangible metals to your retirement holdings.
The Taxpayer Relief Act of 1997, which went into effect in 1998, allows investors to directly add select precious metals within their IRA’s. With all the economic and financial uncertainty today, it is unclear what the future will bring. Ensure that the money you are putting away for the future retains its purchasing power. Consider diversifying your portfolio with tangible precious metals.
A Precious Metals IRA is similar to a traditional IRA. However, as the name suggests, a Precious Metals IRA allows for physical gold, silver, or platinum to continually be held in a tax-deferred retirement account under your name. Much like a 401(k), 403b, or IRA, your assets are overseen by a third party custodian. Furthermore, most types of retirement accounts can be rolled over into a Precious Metals IRA without incurring taxes at the time of transfer. Adding physical metals to your retirement plan is a very simple process.
Gold in particular is renowned as a hedge against inflation. As inflation goes up, the price of gold generally goes up along with it. Gold is also bought and sold in U.S. dollars, so any decline in the value of the dollar typically increases the price of gold.
Many trust attorneys and retirement planning professionals recommend bullion and rare coins as an efficient and discreet method of transferring wealth to the next generation.
Gold demand is outpacing supply while production is declining. Both the Chinese and Indian governments are purchasing gold in unprecedented quantities and encouraging their increasingly well-off citizens to accumulate bullion. Gold demand has also surged from central banks, which have been net buyers since 2009. All of these realities will help keep the value of this precious metal high into the foreseeable future.
Gold is the ideal stock portfolio diversifier, because it negatively correlates to stocks — when stocks go down, gold goes up. Precious metals and rare coins also react to different market conditions than stocks and bonds, making them attractive tools for keeping portfolios balanced through economic cycles.
One major reason investors look to precious metals and rare coins as an asset class is because they will always maintain an intrinsic value. Unlike currency or securities that only hold value hypothetically, these rarities are something physical that you can hold — and therefore hold a certain worth.
Bullion, investment grade gold and rare coins tend to outperform other investments during times of economic uncertainty. In fact, many refer to gold as the “crisis commodity” due to its excellent resilience through the most difficult periods in recent U.S. history.