Individuals have sought to possess gold as insurance against the uncertainties of paper money. Many of these people choose to invest in gold through a broker like Regal Assets. That firm handles Regal Assets Gold IRAs and other ways to purchase physical gold. Gold is the ultimate currency hedge investment. Gold can rise as the dollar falls.
Whether you choose to invest in gold through ownership of the metal, gold exchange-traded funds, or gold mining stock, it will provide higher security counter to the dollar say some people. Here’s some pros and cons.
- Ownership of the Metal
You can buy gold in different forms at various prices. Gold coins, collector coins, gold bars, or gold jewelry are some of your options to have direct ownership of the metal. If you want to buy physical gold, you have to purchase it through a network of authorized dealers. This includes brokerage companies, wholesalers, coin dealers, precious metal ira companies like these guys, and participating banks. You can store gold in bank safety deposit boxes or you can store it personally.
Gold’s value rises and falls based on pure market forces such as supply and demand, not on any government fiat. However, when you want to buy and sell physical gold, do not expect to turn a fast profit. View gold as a long-term investment and as a means to preserve value.
- Gold Exchange-Traded funds
An interesting way to invest in gold is through exchange traded-funds (ETFs). An ETF is an investment fund where financial products physically backed with allocated gold bullion trades on a stock exchange similar to an ordinary stock. It is a popular way to have gold exposure in your portfolio without having to go through the hassles of storing the physical metal. A growing number or investors hold gold as an investment product due to its liquidity.
- Gold Mining Stocks
This is a riskier way to invest in gold because gold miners trade with the broader equity market. Gold production has been declining and big miners keep their gold reserves by buying small-cap companies. Since very few companies actually strike gold and become profitable, do not make the mistake of buying small gold miners that are in the exploration stage. Consider companies with strong production and reserve growth.
- Gold IRA
You can invest in gold bullions for retirement purposes using an Individual Retirement Account (IRA). The Internal Revenue Code allows IRAs to own certain gold coins and bullions that meet applicable fineness standards. The IRA trustee rather than the IRA owner must hold the gold coins or bullion. It is essential that you find a trustee that is willing to set up a self-directed IRA, handle the transfer of funds, and facilitate the storage of these precious metals. If you’re interested check out this buyers guide.
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