Should You Take Advantage of a Precious Metals IRA?

Individual retirement accounts are designed to allow one to save for the future and to have the funds they need to supplement their Social Security income when they reach the age of retirement. A gold and silver ira is similar to other individual retirement accounts in that it’s designed to help investors build their wealth for later years, yet it is back by physical gold and silver rather than paper assets such as mutual funds, stocks, and bonds. To determine whether or not precious metals investing is right for you, you need to understand what is involved and the benefits of choosing this investment option.

To begin investing in precious metals, you’ll need to establish an IRA which allows these types of purchases. Next, you need to find a dealer selling the metals you are interested in. Before you make any purchases, however, make sure the IRS has approved them for inclusion in a gold IRA as there are restrictions on what may and may not be used. Once the purchases have been made, they need to be sent to a third party custodian approved by the IRS as the investor may not hold the coins, bullion, or bars.

This is one way to begin precious metal investing and is referred to as a self-directed IRA. Metals which may be included in the IRA include not only gold and silver, but palladium and platinum so consider all choices as you make your purchases. You also have the option of doing a gold IRA transfer or rollover, if you already possess an IRA account. The funds may be transferred or rolled over as many times as you wish, according to current IRS rules.

There are numerous benefits to making use of a precious metals IRA. When other investments, such as real estate and stocks, decrease in value, precious metals typically go up in price. This allows you to hedge against the movement of the dollar, stocks and bonds. In addition, you have a tangible asset, one you can hold in your hands, rather than a piece of paper, and precious metals may be used as currency in a financial crisis. Consider the above when determining if a precious metals IRA is a wise move on your part. Many come to the conclusion that it is.