When it comes to growing and protecting your nest egg there is a lot of conflicting advice available and it’s hard to determine if what you’re reading or hearing about is accurate. When it comes to investments there are few that are more straightforward than gold and precious metals. An investment into any precious metal results in owning something tangible that can grow in value. While regular paper investments are satisfactory for the majority of investors, those looking to diversify their portfolio should consider a gold or precious metal IRA.
An IRA is an Individual Retirement Account. This is an account set up at a financial institution that allows people to invest or save for retirement and enjoy tax-free growth. The way a gold or precious metal IRA works is that the financial institution will collect the gold or metals on your behalf and store them for you. Gold IRAs typically accept both gold bullion and gold coins but the coins must be 0.9999 percent pure gold. An account is opened with a bank and after you decide which metal you would like to invest in it is physically transferred to the bank vaults. As the value of the gold or precious metal increases so does the value of your IRA. After the length of time you have chosen for your investment you can sell the gold and the bank will give your money back plus any return the gold has made.
Gold and certain other precious metals are an incredibly effective and safe investment to make. Gold is one of the best ways to not only grow but also protect your nest egg and save for retirement. Unlike the volatility of the stock market gold has always held its value and will continue to hold its value well into the future. Not only will it stay valuable but the price of gold, silver, and other precious metals over the last couple of hundred of years has continued to rise. While gold might see some declines in value in the short term over periods of ten years or more it will provide steady and essentially guaranteed returns. There is no chance of gold ever losing value, going bankrupt, or weaning in popularity. Actually, as the economy weakens and people realize the stock market is not as strong as it once was there are a lot more people investing in gold and other precious metals.
Gold is not only an effective way to invest your money but also a safe one. With gold and precious metals you are investing in something that actually exists and not just numbers on a screen. If you’re investing in an IRA you will not personally have the gold but you can be assured the bank is holding it for you in their vault. It might take a little more effort to find the right gold IRA but be rest assured it’s a great way to diversify your portfolio and protect your nest egg for the long term.
Image Source: flickr.com/photos/bullionvault/3592549344
Original Source: http://www.capitalirapartners.com/gold-and-precious-metal-ira/