How to Invest in Gold for Your IRA
IRA is an acronym for Individual Retirement Account. An Individual Retirement Account (or IRA) is a retirement plan or in real basic terms, investment accumulation for retirement which provides specific tax advantages for retirement savings. In other countries, such as Australia for example, it is called superannuation.
An IRA can consist of various investments including stocks, shares, bonds, securities and other vehicles. In the past, an IRA could only be funded with cash or cash equivalents. Attempting to transfer any other type of asset into an IRA was a prohibited transaction and disqualified the fund from its beneficial tax treatment.
However, some precious firms, like GMRGold.com, have recently introduced an IRA facility specifically for their US customers so they can now hold gold & silver in their Individual Retirement Accounts.
Gold bars and some coins with a purity of 24 karat are now allowed into an IRA. Clients can safely and securely insert gold into their IRA where the gold is used as the investment in the IRA.
Only goldcoins having a purity of 24 karat are allowed in an IRA, with the exception of the 22 karat US Gold Eagle. Other gold coins allowed are some from Australia, Austria and Canada. But the South African Krugerrand is not permitted to be included in an IRA as it is a 22 karat bullion coin.
So, why should one have a gold IRA?
An IRA is a long term investment. This makes it ideal for an investment as stable as gold. Currency is volatile and fluctuates due to influences outside of people’s control. Stocks, bonds and even securities suffer from the same vagaries, where gold has demonstrated itself to be stable over the past 100 years in terms of its purchasing power.
While the purchasing power of currency has diminished steadily over the years, one ounce of gold will still purchase the same value as it did 50 years ago. This drop in the value of currency is demonstrated by how much more is needed to buy an ounce of gold than was required many years ago.
Gold is increasing in value and the US dollar is going down. It makes sense to have gold in one's IRA rather than currency, as the gap between the two widens on a yearly basis.
It seems evident that a Gold IRA is likely to ensure one of a safe and comfortable future provided one invests in gold.
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