My pops taught me that buying gold, buying silver and investing in precious metals is a way to hedge one’s bets against inflation. Since that lesson learned the buying gold has boomed and there are dozens of options that allow investors to join the precious metal party. Now, there is a new American gold rush going in regards to consumers purchasing physical form silver coins, gold bullion and the like. As the precious metal buying market is booming, so have investment strategies linked to gold market updates.
Everyone is invited to buy gold and own some of the glistening metal, however buying gold does not an IRA make. Instead, those guidelines are delivered by the nation’s taxation authority, the Internal Revenue Service (IRS). A gold IRA is a unique entity upon itself, the device allows consumers to buy gold for retirement and add metal to their assortment of wealth. The consumer must pay cash for the gold purchase (via a custodian) and then the account manager acts as the financial gatekeeper. Those industry insiders will buy gold based on the clients’ specification and store the metal in accordance with the law; that will allow investors to add gold into their portfolios as long as they adhere to the tax laws of the land.
My dad also told me never to ever mess with the IRS or I may end up in the big house, and not a luxury mansion. The rules the government agency has regarding gold IRAs are very strict, but I know better than to get creative. Although my father died way before gold IRAs became a reality, his advice still resonates with me. I have learned that a legal gold retirement account can contain a variety of U.S. gold coins or 1 oz silver minted by the U.S Mint. It can also be filled with a variety of platinum options, gold bullion,and silver bullion.
If my father was alive, he would tell everyone “Investors looking to diversify into a gold IRA are advised to proceed with caution to ensure that the precious metals investment won’t piss off the IRS.” Since he is not, I am holding the proverbial torch and suggest that if you are interested in following this retirement strategy, working with a portfolio manager who is intimately familiar with the process is advised.