The Internal Revenue Service (IRS) now allows investors to include gold in their Individual Retirement Accounts (IRAs). However, there are some stipulations for the individual who wishes to invest in gold and include this precious metal as part of their IRA portfolio. First, though, one needs to evaluate why you would want to invest in gold.
Gold Investment Through an IRA
Gold, as a precious metal, is currently in demand in the aerospace, technology, and other sectors. At the same time, the amount of gold currently available on the market, as well as the fact that new gold deposits will eventually run dry, means that there will be a gradual decrease of the metal available. Less gold available means a higher market price for the investor. Other factors include geopolitical instability, currency devaluation, and the ongoing threat of inflation. While gold prices do fluctuate, over the long run gold has proven to be an excellent investment for the wise investor. Including gold as part of an IRA makes sense.
IRS Rules on Gold IRAs
First, the IRS specifies that only certain types of gold may be included in an IRA. The gold must be 99.9% pure, or better, and must have been minted by the United States Mint. Gold coins that meet this requirement include American Gold Eagle coins, Canadian Gold Maple Leaf coins, Austrian Philharminc coins, and Australian Kangaroo coins. Excluded from a gold IRA are the Hungarian Corona, British Britannia and British Sovereign coins, and South African Kugerrands.
Second, the IRS has set rules for storage of the gold in your IRA. The gold must be stored in what is known as vault segregated storage and you will need to pay for this service. When you have made your gold purchase, the gold will be transferred to the selected vault. You are not allowed to take physical possession of the precious metal. So you will need to find a trustee for your gold IRA investments.
Third, you need to have an account administrator. Not all IRA administrators are able to handle self-directed IRAs and the corresponding inclusion of precious metals in it. An account administrator must be someone who is not just familiar with the IRS rules and regulations, but who keeps themselves informed of all changes to the precious metals IRA.
Gold IRAs – The Right Choice
As a savvy investor, you understand the importance of a diversified retirement portfolio and you have decided to start your diversification with gold investment. Looking to the future and thinking about the long-term, buying gold for your IRA portfolio is an excellent decision.
Source by Thomas A. Martinez
A Gold IRA - An Investment in Your Future
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