Gold investments: For Retirement Benefits

FinanceStocks, Bond & Forex

  • Author Timothy Schubert
  • Published September 26, 2010
  • Word count 462

The number one new investment in self directed IRAs is Gold.I have seen the number of new account holders investing in precious metals double any other asset class. But there is confusion and a lack of knowledge when it comes to the types of investing there is in the precious metals arena.

There are different ways you could invest in gold and it is important that you understand the different strategies that are available.

One strategy is, investing in Gold Bullion.This is when you are investing in real tangible gold.There are many gold dealers from whom you can purchase your real gold coins and bars. When you buy gold coins directly through your Self Directed custodian they will have a relationship with a depository that will hold your metals for an annual fee. There are some gold dealers that will store your IRAs metals in vaults in other countries to satisfy investors who do not trust government regulated institutions to

hold their metals. And then there are other individuals who have checkbook control of their retirement funds and purchase and store the metals themselves. This strategy is more and more popular because of the before mentioned lack of trust in the U.S. government regulated institutions. Another way for investors to get in the gold investing game is to invest through an Exchange-Traded Funds, or ETF.

ETFs trade just like a regular stock, but they are backed by real gold that the fund buys. You don't get to have or hold real gold pieces this

way but it is another way to invest in gold backed funds. With this method you put your retirement funds in the hands of a money manager that has provided you a prospectus and you have no control over the decisions of your retirement funds.

You could also buy stock in a gold mining company. There are many gold mines that have publicly traded stock that you could hold in your portfolio. Again you will not have real tangible gold but you will gain interest in a gold mining company through stock. Again with this method you are investing in a company that has a board of directors that hopefully is going to make decisions that will help your stock prices go up. You have no control of your retirement funds.

Making gold a part of your portfolio is a strategy that thousands of Americans are engaging in. Holding tangible real gold is better that holding paper or having a ticker symbol to follow. Make sure you understand what you are investing in before you buy. Educate yourself on what you are allowed to invest in and what you should not invest in. Make good choices and always take control of your retirement future.

The article is contributed by a professional content writer, having experiences as an advisor in retirement agency.

For further information on retirement plans visit http://www.growingmyira.com/.

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