Answering this question ultimately lies within an individual’s financial goals and risk tolerance; however, an increasing number of investors are opting to diversify their retirement savings accounts with precious metal investments.
These metals have long been seen as a safe haven for investors, providing diversification and protection against inflation and currency depreciation.
Taxes
Precious metal prices can be unpredictable, meaning your investment could fluctuate in value over time. Therefore, it’s vital that before investing in precious metals via an IRA account. Consult a financial expert.
Your IRA typically works with a precious metals dealer, custodian and depository to purchase precious metals for investment. Once purchased, these metals will be sent from the dealer to be stored by the depository until you decide it’s time to withdraw them.
The IRS places restrictions on what precious metals you can purchase and store in a retirement account, so it’s crucial that you deal with a reliable company who understands these regulations. For instance, some IRA companies only offer gold that meets its purity guidelines.
Your precious metals portfolio should also include silver. Silver is scarcer than gold but high demand due to its industrial applications; hence its price is highly sensitive to supply concerns and fluctuations. Diversifying investments with silver can help mitigate inflationary risk as well.
Fees
Fees associated with investing in precious metals can differ considerably between dealers. Some charge a flat transaction fee while others may take a percentage of assets managed, so it’s essential that you ask about these fees prior to making your decision. Reputable dealers will provide full disclosure before starting investing.
Find an IRA custodian willing to store physical precious metals for you, while being compliant with IRS rules. Many reputable depositories work alongside them as they also provide investors with special services such as research and guidance.
Augusta Precious Metals works with trusted custodians to administer new IRA accounts and serve as liaison for clients, while providing educational videos featuring Harvard-trained economist Delvyn Steele. Their services are reasonably priced and can help diversify your retirement portfolio with precious metal investments – plus they even provide a free information kit with more details!
Diversification
An investment in precious metals can be an excellent way to diversify your retirement portfolio, yet before making such decisions it is wise to consult a financial, tax, or legal advisor in order to evaluate your portfolio, consider options, and select the ones most suited to meeting your specific goals.
The IRS has strict requirements regarding which types of metals may be purchased through an Individual Retirement Account. Only certain gold coins, like American Eagle Coins, qualify. Furthermore, precious metals must be stored at an authorized depository rather than being kept at home or stored privately in lockers.
When selecting a metals company to work with, make sure it provides transparent fees, an array of investment options and customer service that focuses on meeting your needs. Also find out whether it works with a trusted metals depositary.
Security
Precious metals can provide a valuable way to diversify a retirement portfolio, but it’s crucial that security precautions be taken into account when investing. Working with a reputable precious metals dealer that offers secure storage facilities may help safeguard investments should an unexpected event take place, like natural disaster or similar circumstance.
An important step toward investing successfully in precious metals IRAs is selecting a custodian who specializes in precious metals IRAs. Doing so will ensure your investments comply with IRS regulations while offering guidance regarding which metal is most suitable to meet your investment goals and risk tolerance.
Augusta Precious Metals offers Gold IRA services to investors. Their team of professional advisors can guide investors through the complexities of setting up an IRA with precious metals at competitive pricing while delivering superior customer service.
