Precious metals aren’t usually the assets you have in mind when thinking about individual retirement accounts, but IRAs that invest in gold and other precious metals have been around for decades. The status of gold as an investment commodity can provide something of a Midas touch in the sense that you can easily convert assets into gold, and this can include part of your retirement plan. Beginning investors should be careful to do their research and work with a reputable firm, such as First National Bullion. San Diego residents rely on First National’s professionalism and expertise when they’re ready to invest in gold and other precious metals for their retirement.
A gold IRA is one of many options you have in terms of building your retirement nest egg. For the most part, gold IRAs are self-directed plans, which means you rarely find them offered by employers. Although gold isn’t the only precious metal that can serve as an IRA’s underlying asset, it’s certainly the most common. Here are a few things you should know about gold IRAs.
Not All Gold IRAs Are Created Equal
Most people associate gold IRAs with the image of a retirement fund that invests directly in bullion reserves. There are some IRAs managed in this fashion, but quite a few others are focused on different aspects of the gold industry. Some gold IRAs don’t hold any physical gold (they hold certificates instead), but there are also funds that only deal with bonds or shares of mining companies.
Gold IRAs as “Flight to Safety” Investments
Many investment analysts believe gold is the ultimate hedge against market corrections and financial crises. Whenever Wall Street is impacted by market turbulence, smart investors seek safer places to park their money, and gold is often their first choice. In fact, this is the primary reason gold is a valuable investment commodity. Economists will tell you other commodities, such as coffee, natural gas, crude oil, sugar, and even orange juice, would make more sense as “flight to safety” assets, but it’s hard to argue with the herd instinct of global investors.
Diversifying Retirement Portfolios with Gold
The best retirement plans don’t stick to a single asset. For example, if your IRA is pegged to the Dow Jones Industrial Average, you’ll always be exposed to the risk of a Wall Street crash. It’s better to hold an IRA that follows the DJIA along with one that invests in gold and other precious metals.
Gold versus Cryptocurrencies
Whenever investors flock toward a new commodity, you can bet on a new IRA being offered. This has already happened with Bitcoin, the world’s most valuable and volatile digital currency. Given the roller-coaster history of Bitcoin since it came on the market a decade ago, betting your retirement on this controversial cryptocurrency would be extremely risky. If you wish to diversify and spice up your retirement portfolio, gold is a much safer, valuable, and stable option.
If you’re planning for your retirement and you’re looking for the best place to set up a gold IRA account or purchase San Diego gold and bullion, reach out to the trustworthy professionals at First National Bullion. We can answer all your questions and help you understand how gold can figure into your retirement planning decisions. Give one of our experienced dealers a call today at 858-666-6570.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.