Wondering about Gold coins? See why owning gold coins makes the best and the safest gold investments in your IRA plan.
In 2016, investing for retirement is no easy feat. With the recent recession still in the back of everyone’s minds, investors know that a fruitful retirement is all but guaranteed. You work hard saving money for retirement, and you deserve the freedom to retire comfortably regardless of the economy’s state.
Investing in gold coins is a great option to help you do just that. By diversifying your portfolio with a Gold IRA, you are protecting yourself against the uncertainties of a paperless economy. Gold has been a fundamental currency for millennia, and in this article, you’ll learn how to better protect your retirement by investing in this storied currency.
When it comes to saving for your retirement, the more options you have, the better protected you are against taking large losses. An investment in gold coins won’t necessarily make you rich, but it will certainly help you get peace of mind knowing you are better protected. Here’s how:
Gold Coins Act as Protection Against the Threat of Inflation
In today’s economy, the demand for gold as a currency is no longer booming. In an economy where software for computers and applications make for an over 400 billion dollar (market realist) industry, you don’t need physical commodities to make a profit. However, when the demand for such goods declines, what do you have left?
Investing in gold coins acts as insurance for your retirement. Gold has always been a staple commodity when paper and digital currency begin to fail, and gold is a commodity that holds value when other assets decline. Precious metals, and gold coins in particular, shouldn’t be looked at as an investment alone. Instead, your gold coins in IRA should be seen as a part of your bigger retirement savings, and a hedge against inflation in an all but certain economy.
When you invest in a Gold IRA, you purchase approved precious metals in the form of coins or bars; you should treat them as a long-term investment. The market for gold coins fluctuates heavily, making it difficult to buy and sell like you would traditional stock. By investing in gold coins with retirement in mind however, you are holding gold coins for a rainy day, and securing a valuable commodity that typically performs well when everything else doesn’t.
Are Gold Coins a Good Investment?
Gold has for been a powerful form of currency for millennia, and in terms of saving for your retirement, gold coins for investment are a good idea if you want more security in your portfolio. Here’s why:
· There’s a steady demand for gold – Unlike other commodities, gold has been in consistent demand for thousands of years, and within the span of our lifetimes, it’s not look like that will change, giving you peace of mind knowing your investment in gold coins will always have value, and with emerging market economies in Europe, Asia, and India, where gold is becoming an increasingly popular commodity, you can rest assured knowing your investment has value.
· Currencies in case of collapse – If the dollar ever failed, gold would no doubt become an indispensable currency once again. For many, investing in gold coins is truly a safeguard against the worst of worse case scenarios. Knowing that no matter what happens in today’s economy you have something to fall back on is the ultimate retirement security.
· Supply limitations – The days of panning for gold in nearby creaks is over. Today, the amount of time and money it takes to mine and extract gold from ore can be staggering. Giving you a commodity that small bulk buyers will be interested in first before paying a premium to mine their own.
· Easy to understand value – Gold coins are individually weighted, meaning you know exactly how much gold your coin is worth. For example, a one-ounce Gold American Eagle with the current price of gold per ounce at $1323, you can easily track the amount of gold you have invested to the current market price. This also rules out any outside factors that could cause other investments to decrease in vale. Take for example, the car manufacturer, Volkswagen. When the recent news of their false carbon emissions testing went public, value absolutely plummeted. Investing in gold coins means there are few outside factors that would leave you waking up in the morning realizing you just lost half your investment because of someone else!
What Do I Need To Know About Gold Coins Investment?
The first thing you should be aware of is that gold coins as a collector’s item have a large system of varying grades, which affect value. In other words, buy gold coins for their weight, and not their rarity.
The karat system determines how pure your gold is. For example, pure gold is 24 karats, while a coin that’s 18 karats is only 75% gold. To better manage your investment, you will want to stick with 24-karat coins; it’s easier to keep track of your investment’s worth and keeps you from having to pay for a smelter to extract the pure gold from lower karat coins.
Another aspect of gold coin investment you want to know is that per IRS compliance code, your gold must be kept with a trustee. What this means is your gold does not stay with you, but is given to an outside custodian to hold your gold on your behalf. There are scores of management services out there for your gold coin investment, and it is key that you find one you trust to look over your investment.
Whether you are just starting to invest in your retirement, or are a seasoned investor, gold is a great way to protect your retirement. The economy goes up and down, and if you’re unlucky, so too can your retirement savings. Diversifying your portfolio with gold coins in IRA gives you the stability and safety you need to ensure you have an option that performs no matter what the state of the economy. Whether you’re buying a little or a lot, everyone saving for their retirement should seriously consider an investment in gold coins.