Saving Gold

Since the financial crisis of 2010, many people are transferring their regular IRAs to gold IRAs. The difference between the two is that regular IRAs invest in the stock market with the fluctuations that exist in that whilst gold IRAs, are only allowed to invest in old or other precious metals. It was the holders of regular IRAs that in 2010, if they retired that year, who found out that all their savings over the years, amounted to far less than they had expected due to the low value of the stock market. Of course it could be argued that they could have made a huge profit if the timing had been different but it wasn’t and they had their dreams of a financially secure retirement shattered. It is known that the stock market can fluctuate greatly and although that may suit people that are hoping to make a quick profit, it isn’t really a good type of investment for long term savers, such as those people saving for their retirement. Since the disappointment of those retiring in 2010, many IRA holders are switching to gold IRAs. Gold IRAs are subject to the same tax benefits as regular IRAs but instead of investing funds in the stock market, gold IRAs must make the investments in either gold or other precious metals. As gold and precious metals fluctuate in value far more moderately than stocks, they are considered to be safe investments, ones which are good for long term savings.

If you opt to switch to gold IRAs, it will be said that you are investing in physical gold. Although considered as physical gold holdings, it is not you of course that holds the gold, you will have to find a suitable custodian who will then be obligated to secure the gold on your behalf. These custodians obviously charge a fee but for that fee they ensure all your holdings are secured properly but, as the amount of gold you acquire grows, so will their fees. This means that not only should you check what a custodian will initially charge you but also what his fees will rise to once you have larger holdings.

Although once you have opened your gold IRA you are entitled to buy old bars, old coins or just gold by the ounce, there are certain restrictions on exactly what gold you can buy. For instance, many rare gold coins or what are deemed collectables, are not allowed to be bought by a gold IRA. There is no reason why you should stray from these rules that the IRS has laid down but if you do, the IRS will take it very badly and ensure that you pay for all the benefits you had previously been allowed. Do not let these things put you off though, gold is always a good investment and has always been valuable, even in the days of ancient Egypt and there is nothing that seems to be going to change that, not before you retire at least.