The Benefits of Adding Gold to Your Investment Portfolio

By | July 14, 2015

Many, when they think of retirement accounts, think strictly of stocks and bonds, but there are many other options when it comes to building a retirement portfolio. Some choose to invest in real estate in this situation while others opt to try their hand at day trading. One investment that tends to be overlooked is gold. Gold and other precious metals are increasing in popularity though thanks to the downturn in the economy. As the economy struggles, precious metals tend to go up in price. If you are looking to diversify your portfolio, a gold ira is a great way to do so as it comes with many benefits.

Stocks and bonds are backed by the dollar and yet the dollar is being devalued thanks to the current spending levels of the federal government. As the debt increases, stocks and bonds tend to bring in less profit while gold and silver prices continue to go up as they aren’t affected by changes in the dollar. Gold and silver will never be worth zero so many choose to invest in these items, which drives the price up even more. Supply and demand plays a role in this as with any other item which can be purchased.

There are no tax implications if you choose to choose to invest in an IRA of this type. Often, this investment won’t need to be reported to the Internal Revenue Service although it is best to consult a tax advisor when the time comes to file your yearly taxes. You don’t need to worry about a penalty being imposed if you choose to transfer assets from one IRA to another retirement plan as long as it qualifies and set up fees are minimal in most cases. This is dependent on the amount transferred. Your gold partner expedites this for you so take care when choosing where to invest in gold.

The addition of gold to an investment portfolio has other benefits also. Choosing an IRA of this type adds protection, growth and security to your overall retirement strategy. Diversification is the key, as experts will tell you. Those who invested strictly in stocks and bonds learned the hard way that their portfolio could lose a great deal of value in a short period of time and the same is true of those who focused only on real estate. Those with a mix of stocks and bonds, real estate and precious metals found that their portfolio came through the housing market crash and the downturn in the stock market in decent shape. Although money was lost, the losses were minimized as the price of gold increased. Speak to an investment advisor today and look into opening an IRA with gold. You may find this is exactly what is needed to round out your investment portfolio.

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