Category Archives: Gold IRA Advice

Gold investing

Gold Investing Risk Few People Know

Gold investing risk is a factor many investors ignore. But, just like any other investment, there are several risks involved when investing in gold. Gold and other precious metals such as palladium, silver, and platinum have risks associated with them. The main aim of investing in gold IRA is to protect your wealth against inflation, global currency uncertainty, and money corruption. Here are some of the ways you can lose money while investing in gold or other precious metals:

Risk of gold investing

Gold fluctuates in price

Gold investing

Gold investing

If you will buy gold when it has high rates to the US dollar, and you sell it later when the price of gold is down in the world markets, then you will lose money. The best ways for you to go about it include investing for an extended period. In average, gold appreciates in value over a long time. For example, you should think of letting gold stay in your IRA account for more than two years for you to make a profit. If you will buy it and later liquidate within two weeks, there are high chances you will lose money.

Opportunity cost of gold

There are several alternative assets such as stocks, bonds, and other investments. Gold will just sit in your account and wait for the value to increase so that you can sell it and earn more. In simple terms, gold is a store of value. Other investments will make you money as time goes. It is unlike gold which can sit in your account for several years before it can make any gains.

Storage fees as part of Gold investing Risk

After you buy gold, you will have to turn attention to the storage costs. You can end up storing the precious metals for several years to come. The cost of storing the precious metals can become expensive in the long run. The venture can end up being uneconomical if you will store the gold for an extended period before you can liquidate it. There are several gold IRA companies which offer the storage services. Take your time and locate the best company where you can access the storage services.

Supply And Demand Affects Gold Price

Just like any other commodity, the supply and demand influence the price of gold. Gold does not expire; some of the precious metals which were mined several centuries ago are still available in different reserves. When the demand rises, the owners can avail it to the market for them to access the high prices. You should venture into the gold investment with an open mind knowing the demand and supply can affect its price. From reliable sources such as World Gold Council, there is approximately 2500 tons of gold mined annually. About 2,000 tons go to jewelry production while the rest is used in gold funds and traded exchanges.

Central banks affect Gold Price

Most banks hold precious metals especially gold as reserves. In the year 2004, the International Monetary Fund and other international banks held more than 19% of mined gold as reserves. Other banks which have a lot of gold reserves include Bank of England, Swiss National Bank among others. The Washington Agreement on Gold signed in 1999 limits the amount of gold which can be kept by banks as reserves to less than 500 tons. The members of Washington Agreement on Gold include Japan, United States, Europe and Australia.

Gold investing Risk driven by state policies

Some states such as Russia have expressed interest in increasing their gold reserves. China announced in 2005 that it would increase its reserve of gold from 1.3 to a higher value. It made most Chinese investors shift to gold as an investment instead of the Euro. India is another country which is buying a lot of gold. Since The Euro Zone Crisis, India has bought more than 200 tons of gold. The financial decisions made by world banks affect the price of gold.

Gold Hedge against financial stress

Most countries are in the deficit of currency. The more the money is pumped into printing currencies, the less the value the paper currency it attains. It makes it necessary to invest in gold bullion bars and coins. Investment alternatives such as equities, bonds, and real estate don’t compensate for the risk involved due to the devaluation of currency. Many experts recommend gold as a portfolio insurance. The more the alternative investments are affected by inflation, the less the gold and other precious metals are affected by the inflation.

Jewelry and industrial demand affects the price of gold

About 70% of annual gold production goes to jewelry. India is the largest consumer of gold used in jewelry. It consumes more than 27% of the gold used in making jewelry. China and the USA also consume a lot of gold jewelry.

Also read: Benefits of investing in gold

About 12% of the gold produced goes to medical and dental uses. Gold has high electrical conductivity and thermal properties. It is also very resistant to corrosion and any form of bacterial colonization. Middle East economies are increasing their gold consumption. This is due to their aspiration to adopt western lifestyles.

Short selling

Trading in futures of gold has led to market manipulations. People believe gold prices have been suppressed. The traded futures of the commodities especially in precious metals leads to short selling which affects the price of gold in one way or another.

Gold can be stolen

It depends on where you have kept your precious metals. Some people will buy gold and store it in their safes. But, you should be careful, if someone will notice you have the precious metals, he can steal from you. You should have it in a custodian who has fully insured it. You will have to pay for the insurance services as well as the cost of storing it.

Even if there are some risks associated with gold investing, the overall risk cannot outweigh the benefits you will enjoy out of gold investing. Take for example what has happened in the Brexit and the ever-changing government administration. You never know whether Trumps administration can affect the value of the dollar, if it will be affected, then those with gold IRA will be protected.

 

Gold IRA company

4 Of the Best Self-Directed Gold IRA Custodians Available

1) Regal Assets as one of the best self-directed gold IRA custodian

From the better business bureau you will find Regal Assets rated A+ as the best self-directed gold IRA custodian, this is really impressive. From the consumer alliance you will find the company rated AAA, it has a 5 star rating as the best gold IRA custodian. This is from trust link where it has been rated with more than 233 customers. Continue reading

Precious Metal Backed IRAs

5 Benefits of Precious Metal Backed IRAs

There are many benefits that you will enjoy after you decide on precious metal backed IRAs as the best investment plan for your future. Gold has a great history of maintaining its value as well as appreciating over time. This means that after you decide to rollover your savings in to gold IRA, the savings can be from 401k plan or from the savings that you make out of your daily business. Continue reading

The Best Gold IRA Custodian

The Best Gold IRA Custodian

You should choose the best gold IRA custodian who will be taking care of your precious metals after you decide to invest in gold. The best gold IRA custodian is very necessary because the law requires anybody who will like to invest in gold IRA to have a custodian who will take care of the precious metals. Usually a custodian is a company that has safes where the precious metals are stored in. You can decide to invest in gold today, but you will be able to get the funds from your gold IRA after you have reached the age of 59.5 years. This means that in case you are in mid-thirties, you will have your gold stored for approximately 30 years. This is a long period of time hence you should look for a competent custodian who will be able to store the precious metals well.

Tips for you to select the best gold IRA custodian

1.Experience

One of the best tactics that you can use for you to land on the best company that will act as your gold IRA custodian is taking into consideration the experience of the company. You will be assured of the best company after you take into consideration the period of time in which the company has been in operation. A company that has been serving people for many years and in the period in which it has been in operation there are no major complaints which have not been solved.

2. Reputation

Of course you are not the first person to try the company in your investments. There are other people who have ever been served before you. If possible you should meet those people and ask them about their experience with the company. In case the people portray the good reputation of the company, then you should consider making use of such a custodian to invest your lifetime savings. You will also access a lot of information about the reputation of the best gold IRA custodian from Better Business Bureau.

3. Gold IRA Products

The best gold IRA custodian should allow you have a wide range of products in your investment portfolio. This is necessary because it can reach a time when you will like to have gold coins, gold bars and other types of precious metals in your self-directed individual retirement account, in case a given custodian has limited choices of metals it will be very hard for you to diversify.

4. Fees charged by the best gold IRA custodian

The fees that you will be charged by the custodian in taking care of your precious metals will tend to vary a lot. For you to avoid cases of exploitation you should try to compare the fees before you decide on one. While taking into consideration the fees that you will be required to pay you should consider the starting fee as well as the fees of running the account over the long period of time.

5. Service offered by the best gold IRA custodian

The best gold IRA custodian should educate you on the importance of investing in gold IRA as well as the best options that you should take. The custodian should also be open in most of the time for you to call and inquire about your process of trying to set up the account. In case the custodian has several methods of reaching him such as email address, active telephone number, online chat and other methods through which you can reach him in case one channel fails, then that should be a custodian for you to choose.

6. Policies and fees of the custodian

Each Gold IRA custodian has his policies and fees structure. You should check out the fees structure the Gold IRA Company before you invest. A company which offers flat fees structure is among the best for you to consider if you will like to be assured of great savings. There are also other hidden costs which may apply, read the policies fully. If possible invite a financial advisor to help you make the decision if you are about to make huge a Gold IRA rollover.

7. Flexibility & History

How many years has the company been in operation? A company which has been in operation for an extended period of time will be in a better position of offering you the best services. You should as well check on the gold IRA company complaints so that you will know how often customers complain. You will risk if you will invest in a company with a lot of customer complaints.

8. Customer Service

Any problem you will face while investing in gold IRA, the custodian should be ready to help you. Try his contact numbers and know the period he will take to respond to your call. An urgent response is necessary for you to have peace of mind throughout your investment period.

9. Storage Safety

The physical metals will be stored in a physical location. The company should employ the highest level of safety standards for your investment to be always safe. You can carry out background checks and know the depositories whether they are safe or not.

10. Buyback Program

The truth is that, after storing your value in physical gold, it will reach a time when you will have to liquidate and buy other necessities in life. The best gold IRA company for you to trust should have a buyback program where you can always fill a form, and they convert your physical gold into the current value for you to access money.

11. Pushy Salesmen

The gold IRA investment is a long term investment. The gold IRA custodian should always offer you freedom to think critically and make your personal decision. Avoid salespeople who will push you to make a decision. Some of the questions you should ask the custodian before you make your final decision include the following:

Are all your physical metals approved for IRA?

How long will your buyback program take?

What are the setup fees for the gold IRA account?

What other investment options do you offer apart from gold IRA services?

Do you provide financial advice to all your precious physical metal investors?

What makes you among the best gold investment companies?

How long does it take to have gold IRA rollover?

Are you approved gold silver IRA rollover custodian? You can check here a list of our top gold IRA custodians/companies

12. How gold IRA plans work

The plans work by storing your physical metal in a secure location. From history, precious metals such as gold, silver, and palladium keep on rising in value as opposed to paper currency. After storing your metals for a given period, you can withdraw them and sale in the market value. You always make a profit due to the appreciation in value of the physical metal or the depreciation paper currency.

13. How does gold and silver IRA work?

Gold and silver IRA works similar to gold IRA. But, in the case of gold and silver IRA, you store silver and gold in different proportions in your investment account. It is a retirement investment plan hence you will be allowed to withdraw the funds after 59.5 years. If you withdraw early, you will still make profits, but you will have to pay tax and other penalties.

 

Are gold IRAs safe

Are Gold IRAs Safe

Are gold IRAs safe? This may be a question that you are asking yourself, it is normal for you to have such questions before you decide to invest in gold IRAs. Actually the investment is very safe. Before any company that deals with gold IRA investment to come up, it has to follow all the rules and regulations put in place by the federal government. Continue reading

Gold Bars For Sale

Gold Bars For Sale- The 4 Common Types Available

After you see an advert indicating Gold bars for sale, you should take time and check on the type of Gold bars for sale that are being advertised. There are many bars available which will be sold at different prices. Because different people have different purchasing powers, you should buy those that your budget can easily accommodate. In case you are buying them for you to use in your IRA account, you can decide to buy in bits so that you do not strain yourself financially. Remember it is always good for you to save enough money but you should not get stressed in saving the money.

Where to buy gold bars in America

The decision that you will make on the company from where you will buy the gold bars also matters. The best company from where you will buy should be able to sale to you the metal at the best rates. In most cases the price of gold will be determined by the spot price of gold but the difference will come in where different companies will add their premiums when selling you the gold bars.

4. Common types of Gold bars for sale available

1.Kilo Gold bars for sale

These are bars that weigh 32.15 toy of ounces or 1000 grams. Due to the convenient size of the bars, it is among the most traded in the world. It is associated with low premiums which make many people go for it. The kilo Gold bars for sale are mostly owned by big investors and governments. This is due to the fact that they are very expensive.

2. 10 ounce Gold bars for sale

These are typically large in size and can be a bit difficult to liquidate. They are mostly bought in large quantities by big investors. In case you will like to buy one, then you will be required to part with a good sum of money. After buying the gold bar after some time you will be assured of great returns in case you liquidate them after the gold prices have appreciated.

3. 1 ounce Gold bars for sale

They are every popular in many gold investors. You can also find one ounce gold coins which you can buy and store in your IRA account. There is a great difference between one ounce gold coin and bars, bars tend to occupy less storage space when compared to gold coins.

4. Gold biscuits

You can decide to buy gold biscuits with stamped images. They are mainly of novelty value. They come in different designs which you can decide to buy and stay unique. The designs will be in a large extent determined by the country from where you may have bought the bars from.

Where to Buy Gold Bars In USA

There are several places from where you can buy gold bars in the United States. There are some places where you can buy the gold bars, and you end up with fake bars. Always carry out your background research and locate the best places. Some of the factors you should take into consideration so that you can find the best place include checking whether the seller will offer you a warranty. A guarantee will make it easy for you to recover your money.

Tips for you to locate the best place where you can buy 1-kilo gold bar

1.Check whether the seller is fully accredited

All dealers who deal in precious metals are fully accredited. You can check on his website and ask more questions about his accreditation. If you are buying for home storage IRA services, then you need to check on the Department of IRAs for you to know whether the seller is fully accredited.

2. Check out the reputation f the gold biscuit seller

You are not the first person whom the seller has dealt with. Carry out an online search, and you will locate gold seller reviews from where you will know whether the person about to sell you the precious metal is fully accredited and offers quality services.

3. Shipping terms of the gold bars

Does he offer discrete shipping? Gold is precious, and people can steal from you. The best seller should arrange for fully insured and discrete shipping for you to enjoy peace of mind after ordering the gold bars and coins.

4. Check out gold bars prices

The gold prices are standard. If you will find out a given seller is offering low prices. Then you should be careful. The standard price of gold bars weight is known. Each weight should respond to a given value.

Some of the best places you can buy gold bars in the United States include the following:

Buy gold bars from USA banks

Almost all major banks in the United States have gold bars and coins reserves. The federal government regulates the banks hence there are high chances they will offer you genuine gold. If you are serious you will like to buy 1 gram gold bars, then you can order from banks, and they will ship the gold bars and other precious metals in a professional way. It is the best way so far you can use to access gold bars for different applications in your home.

Buy gold bars and coins from gold IRA companies

Several businesses offer gold IRA services. They have huge stocks of physical gold in their depositories. At some points, the investors who prefer physical gold can resort to selling the gold bars. The gold IRA companies which offer buyback programs can sell you the gold bars. They will handle the transaction in a professional manner because most of them will like to maintain the good reputation. Common companies which sell the gold bars include Regal Assets, Advantage Gold, Lexi capital among others.

Online gold stores

You can buy gold bars for sale on eBay or even Amazon. But, you should be careful because most online e-commerce stores will not go further to check on the purity of the precious metals. They are the best places for you to buy gold jewelry but not bars for you to store as a form of investment.