The world economy is very unpredictable. There are many factors that cause the world economy to go unstable. This will negatively affect your investment retirement account. There is a great way to have a safety net when the worst case scenario happens. Buy gold and invest it to your IRA (Individual Retirement Account).
Gold has been a symbol of wealth way back in the early ages. It was prominently used by Egyptians to form jewelry as a display of wealth. Not long after, merchants were finding it difficult to exchange goods and commodities. To solve this, they developed the gold coin. It made trading easier by making a form of money that is easy to carry and transfer. Gold became a valuable material. It became one of the main objectives of the “New World Exploration”. Native Africans, Americans & Asians were already using gold as a symbol of wealth way before Europeans discovered them.
Gold became a standard of creating money. It was even mandated by the U.S. government in 1792. It stated that every monetary unit in the U.S. had to be backed by either gold or silver. It discontinued in 1971 with the production of paper money. Paper money replaced gold coin as the standard form monetary unit.
When the value of paper assets decreases the value of gold increases. This inverse relationship helps balance out the risks in investing in the long term. It acts as an insurance policy should there be an economic collapse, inflation or deflation. Gold IRA is a smart choice when you want to diversify your retirement portfolio.
Gold has also been throughout history maintained its value. Gold has been the means of keeping wealth between family generations.
It’s also advisable to have diversification in your portfolio. The added investment should not be correlated with your existing investments. In the case that if one investment doesn’t go well, there is another investment that balances it. Gold in history has had a negative relationship with stocks and other types of investments. Experts recommend a 10% to 15% of your total portfolio as a gold investment. Some experts even put the limit at 20%.
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- Why Gold Matters
Gold’s Supply and Demand
The supply of gold has also gone down over the years. Production in the gold mining industry has been shaky. It takes about five to ten years to establish a producing gold mine. With supply decreasing, prices of gold increases.
Gold demand also increased as more Asian market economies are on the rise. Such economies are India and China. Culture plays a huge factor in demand. India’s demand for gold is high especially in October. October is the wedding season in India and the demand for gold to be used as jewelry rises. In China, gold bars are a traditional form of saving wealth. In south-east Asian countries, gold jewelry is perceived as a display power and status.
Cost Of Investing In Gold
Just like any other investments, gold prices also go up and down. The best thing about gold is that its’ value never goes down to zero. It’s a physical asset that preserves wealth while dollar value has been affected by inflation.
Being a physical asset also has disadvantages. Gold is susceptible to theft. That’s why there are custodians that help safeguard your gold. Custodians are usually banks, trust companies, credit unions, brokerage firms, and savings & loan associations. They are approved by federal and/or state agencies to give asset-custody service. Do note the difference between custodians and metal dealers. Custodians only offer services of safeguarding your assets not selling you gold. Well-known custodians, however, have a list of metal dealers and may recommend you where to buy your gold investment.
These custodians, however, do not do this for free. Maintaining your gold IRA comes with a cost. You have to make sure that the potential growth of your gold IRA outweighs the cost of maintaining it. The usual fee that most custodians demand are:
- The broker’s fee - A one-time payment for the gold you want to buy. The payment varies differently among sellers. Also, there are a different set of requirements for every form of gold when the time comes to sell the gold.
- Retirement account set-up - Also a one-time payment to set-up your new gold IRA account. The fee varies differently among institutions.
- Custodian fees - An annual payment same with other IRA accounts. It may have a higher price for safeguarding physical assets.
- Storage fees - The fee you pay in exchange for storing your gold.
Choosing The Right Broker
There are many brokers offering their services. Be wary of scammers posing as legit brokers. We’ve researched a few companies that would help you startup your gold IRA. We used certain criteria and rate them accordingly.
The criteria I'll be using is:
- Clarity - It is important that you know all the costs before making the investments. Not knowing the costs upfront will lead to surprising fees and payments. Shady custodians and scammers may take advantage of you.
- Management - A good company will always have good reviews. There are 3rd parties offering an objective insight into companies. You can check out the Better Business Bureau and Business Consumer Alliance. You may also want to check customers feedback. Negative customer feedbacks help you get an idea of what issues the company has.
- Compatibility - Companies have a different style on how they run their business. Choose a company that is compatible to your needs. The type of security they have, payment installations and other stuff will be different. You can check out their website and see how they run their business.
- Accreditations - The company should have all the legal documents to operate. This includes licenses, registrations, insurance, and bonds for the protection of your investment. The company should have it readily or in public view.
Review Of Gold IRA Companies
We’ve compiled a list of gold IRA companies and checked them out. We will provide you with information about these companies. We will show the good and the bad. This will help your gold IRA investment become a success.
BBB Rating: A+
Featured On: Business News Network, Bloomberg TV, CNBC, Fox Business
Year Started: 2014
Address: 12100 Wilshire Blvd Suite #1450 Los Angeles, CA 90025
Contact : 800-341-8584
Advantage Gold is the leader in precious metal IRA rollovers. They specialize in converting your existing IRA or 401(K) into gold or other precious metals. They have voted #1 trusted gold IRA company in 2016 and 2017 on TrustLink. They offer precious metals in the form of coins. They are very good for first-time investors. They will provide you with the following:
Educate you on your available options
Set up your IRA account
Contact your current custodian or financial adviser. They process the rollover or transfer on your behalf with full service.
Be there for you throughout the lifespan of your account
Offer buyback services if you want to liquidate
Gold Advantage has many positive customer feedback and rated number 1 trusted gold IRA company two years in a row on TrustLink. They are the best in the market. They are also very good for first-time gold IRA investors. They are also good for converting existing IRA accounts into gold IRA. If you’re just starting a gold IRA this company is suitable for you. They will educate you and provide guidance throughout your gold IRA account setup.
BBB Rating: A+
Featured On: Forbes, Inc.500, Smart Money, Market Watch, Bloomberg Businessweek, The Street, Reuters
Year Started: 2003
Address: 200 West Highway 6, 4th Floor Waco, TX 76712
Contact : 1 877 962-1133
Regal Assets has been in the industry for 14 years. They are the highest rating profile in the precious metal industry for 7 years. They have also been placed #20 in INC as fastest growing private companies. They have multiple storage facilities all around the world. Having your gold stored in another country have some advantages. Certain countries have more stable and secure financial jurisdiction. They also have a buyback option. They guarantee that the liquidated funds will be transferred to you within 24 hours. They provide free investment kit complete with information. With 1000+ positive reviews and 14 years in business, Regal Assets is a proven and tested company. If you want a company with security and proven track record, Regal Assets is for you.
BBB Rating: Not Accredited
TrustLink: No reviews
Featured On :
Year Started: 1977
Address: 64 Lake St Ste 101 Rouses Point, NY 12979-1028
Contact : 1 877 775-4826
A 41-year-old company that started in Canada. Its site contains different graphs, charts, and news. It is very informative of the trend and state of the gold market. The infographics on their site allow readers to keep track and make better decisions for the future. Although very long in the business, Kitco has negative reviews among customers. The main problem customers had was customer service and shipping. Thou these reviews came from outside sites. But when you check their forums, it’s a different story. A large number of people contribute and place their insights on the current state of the market and economy. The community is very friendly and offers guides and advice for you. The forum topics range from precious metals, base metals, mining, FOREX, Bitcoin and the stock market. They share their predictions on the market and people discuss it. The forum hosts 51,584 members to date. This is really good for people who want other investors’ opinions. The only downside it has is it has no reviews on BBB, TrustLink and other known company reviewers.
BBB Rating: A+
TrustLink: 5 out of 5 stars based on 2 customer reviews
Featured On :
Year Started: 2000
Address: 226 Dean A Mcgee Ave. Oklahoma City, OK 73102-3413
Contact : 800 375-9006
APMEX or American Precious Metal Exchange is an investment security company. They have been in the business for 18 years. They offer a variety of precious metals and coins. Do take note that only certain specific gold coins are IRA-approved. You can check out the list by clicking here. They have transparent prices so you don’t have to worry about hidden fees. The customer feedback is also positive. They also implement their QuickShip program that delivers your order within the next business day. If they do not meet the standard of the program, they offer compensation to customers. What’s really good about APMEX is their variety of golds. They offer gold in bars, rounds, jewelry, and coins. The coins also have a huge variety. They consist of American, Canadian, African, and many other types of coins. If you like collecting rare coins, you may want to take a look at their website. They have over 5000 different types of coins, rounds, and bars. The variety of their product is what really sets them apart.
BBB Rating: A-
Featured On: OC Metro
Year Started: 1967
Address: 4910 Birch St. #103 Newport Beach, CA 92660-2188
Contact : 1-800-997-7859
Monex is a 51-year business run by the Carabini family. It’s one of the country’s oldest in the precious metals industry. With age comes experience. They have a 9.1 rating on Trustpilot on 780 reviews. 80% of their clients have done repeated business with them. 25% of their new clients come from the referral of their old clients. Most of their employees are also with them for a long time. The quality of service speaks for itself. Customer reviews have nothing but praise to how smooth their transaction was. This company is great for those that want their investments handled by longtime veterans. The Carabinis have been in the business for a long time so they know how to run their company.
In choosing to buy gold, there are many companies out there. You may want to check out the ones we reviewed. What’s important is that the company offers transparency and security. You can always check out other companies. But remember to follow our guide on choosing the right company for you. Be always wary of scammers. With the knowledge you gain, it should be easy enough to avoid them.
Gold is a really good investment to add to your portfolio. It’s also ideal to have diversity in your portfolio. The value of the dollar is decreasing as more and more growing economies are on the rise. You got to have an insurance policy to keep your investments secure. And the best investment you could choose is gold. Gold has always maintained its precious value throughout history.