Read This Before Investing In A Physical Gold IRA

Mar - 20 2015 | By

gold bullionThe economy is raving about the price of gold and many have purchased shares in gold companies but physical gold IRA investments are gaining interest in the financial world. Precious metals have been on the rise for quite sometime and can make a great hedge against inflation if certain economic factors stay stable. Unfortunately, there is no way to see into the future and all risk must be considered, including ultimate disasters. Every investor must ask, “Can my finances take the hit if things go wrong.”

Investing in physical gold IRA (Investment Retirement Account) may hold tax advantages. This money is designed to take a retiree to points unknown without the user ever working again, the many practical reasons existing for investing in a physical gold IRA account look great on paper. Particularly, in good economic times, but many things can happen between work and retirement years. However, this type of investment has some good points:

Reasons for Investing in Physical Gold IRA:

  • Tax advantage
  • Protects against dollar value drop
  • Accounts placed in investor’s name
  • Purchased directly or through a brokerage firm
  • Get serial number, purity and refiner

Not all companies are interested in handling a physical gold IRA account, so it is necessary to check with a reputable dealer that does. It is not easy to find a dealer over night. This means a diligent search for a seller that will not sell a less than honest product. Once you have found an honest dealer, carefully invest in physical gold. Most investors want the initial investment to start at $10,000 and a brokerage house charges a percentage for handling the transaction. There is also a charge for storage per year.

Reasons for Avoiding Physical Gold IRA:

  • Not in your physical possession
  • Cannot gain access
  • Uncertainty if dollar fails
  • Assets may become frozen
  • Laws governing the account may change
  • Government may seize gold

Investing in the physical gold IRA is an interesting concept and certainly a way to protect the value of paper money in case of a failing economy but not all companies allow an investor to take physical possession of gold. Physical possession is better, storing the product in a place of your choosing.

Since in a chaotic situation the physical keeping of your gold may be in danger in a place you have no physical access to. The question does loom, would a physical gold IRA be the best idea? Just in case, you need your funds in a hurry. Only the investor knows his or her financial situation.