Why Invest in Physical Gold Versus Gold Stocks and Gold ETFs

Post on: 4 Июнь, 2015 No Comment

Why Invest in Physical Gold Versus Gold Stocks and Gold ETFs

Investing in precious metals provides a sound alternative to the traditional retirement savings account. But choosing between gold stocks or the gold ETF presents a challenge to many. Investors are becoming familiar with the benefits associated with investing in a physical gold IRA.

What Are the Benefits of Investing in Precious Metals?

Gold, silver, platinum and other metals protect investors from the perils of inflation. When the economy begins to fail, gold stocks, the gold ETF or other precious metals are not affected by inflation and do not lose value. In many situations, they increase in value during negative economic events.

Precious metals tend to increase in value over time. Investors want a portfolio that reflects a steady increase in value. The volatility of some investments, such as stocks, makes predicting financial stability difficult. Consequently, investing in a product that increases in value is important to developing a stable portfolio. Gold has increased in value steadily over the past ten years.

The Benefits of Investing in Physical Gold

The three common methods of gold investing include physical gold, gold stocks and gold ETFs. Each investment method has its own distinct benefits. Physical gold investing provides you with complete control of your investment and offers a balance in your portfolios performance. Physical holding provides investors with protection against bank failures and is a private investment with very minimal reporting requirements. Keep in mind that physical gold must have a place to reside.

Gold ETFs allow investors to purchase and sell quickly. The ETF also provides investors with diversification when included in a larger account. Keep in mind that gold ETFs have much higher reporting requirements and higher transaction fees.

Gold stocks present a risky investment strategy because they also trade with the equity market. The inexperienced investor might select a gold miner that hasnt struck gold and cant produce a winning cash flow.

How to Invest in a Physical Gold IRA

The physical gold IRA offers an alternative for the experienced or inexperienced investor. This product allows investors to stabilize their portfolios by including physical gold bullion or coins. You can create your IRA account today by following these simple steps.

Complete the IRA Account Setup process. This process requires the completion of several documents, including IRA Precious Metals Investment Direction, IRA Transfer Request / Direct Rollover Request and Rollover Certification. These documents establish your account.

Once you complete the paperwork, you should pay the fees associated with opening your account.

Why Invest in Physical Gold Versus Gold Stocks and Gold ETFs

When the account is open, you should fund it with an amount that makes you comfortable. The funding provides the amounts required to execute purchases on your behalf.

Once you fund the account, you can tell the custodian of the account what to purchase.

Keep in mind that you cannot keep your precious metals purchases at your home. The federal government requires that investors keep their gold in a secure location. Consequently, your gold will be stored in a secure location that you can visit at any time.

Investing in gold and precious metals delivers an alternative to the traditional investment vehicles, such as stocks and bonds. The physical gold IRA offered by Regal Assets (currently our top recommended company) provides investors with an opportunity to diversify their portfolios with gold products. You can purchase bullion or coins and enjoy the hedge against inflation offered by precious metals.

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