The rise in gold prices over the past couple of years is a clear sign that Americans have been looking for shelter from economic turmoil. Individual retirement accounts now have the option to include gold and other precious metals in their portfolios thanks to changes made by Federal statutes governing IRAs. Millions upon millions of Americans have made the decision to invest at least a part of their IRAs into gold and watched their account values soar. Gold IRAs offer the security of gold, while remaining within the overall retirement account structure. You can see gold and silver IRA accounts for more information.
It’s also known as diversification
To make sure your investment in gold IRAs is successful, you need to keep your account well-diversified. While many people are tempted to go for extremes in the portfolio’s balance, such as choosing to hold too many stocks or too many CDs, the idea is to manage your account so that you get equal amounts of safe growth and larger returns. While certificate of deposit provides secure growth, it offers a much lower rate than stock purchase. You can have added security and growth by having a gold IRA.
Gold is stable
One of the greatest benefits of a gold IRA is that it guarantees that most of gold’s value will be retained. Although gold’s value will always fluctuate according to market forces, there is a limit below which it cannot be expected that it will fall. It’s far safer than buying stock, and it still has the potential to grow when gold prices go up. Therefore, a gold-backed IRA is one of most secure ways to plan for retirement.
Which gold can be accepted?
As you might imagine, not all forms of gold can be used within a gold IRA. Current IRS rules restrict the ownership of gold within an IRA to those of a particular fineness. The fineness of gold bars must be greater than 0.995 and the fineness of gold coins must not exceed 0.9999. Some gold coins, such as the Gold Eagles and foreign coins, are not allowed to be included in a IRA plan for gold.