The Cost of Physical Gold
There are several fees associated with physical gold. A self-directed IRA custodian will charge you for account set up fees and yearly maintenance fees. In buying gold, you have to pay for transaction fees and the cost of having it shipped to a depository. Physical gold bars or coins have to be stored in a depository; you need to pay for annual storage fees. You also have to pay insurance to protect your investment against theft. Again, shipping and transaction fees will have to be paid when you are ready to sell your gold.
Despite these charges and fees, adding gold and other precious metals in your retirement plan is a wise investment choice and remains to be extremely popular for investors. If you want to invest in a gold ira then you should check out this review of regal assets.
With any investment come risks and rewards. Gold prices have volatility and no one can accurately predict its future.
Similar to other physical commodities, gold is subject to theft. Despite the fact that depositories are required to be insured to qualify for the best gold IRA, someone could still break into the depository where your gold is being stored. Your account is protected from theft but only up to the custodian’s stated value.
Dishonest custodians might also steal from their customer’s accounts. There is also the risk of fraud where promoters will willfully not tell you all the information and not tell you about all the risks involved and the potential losses. It is important to find the right investment company to avoid falling prey to fraud.
Despite the risks, gold remains as the most trusted hedge against economic hardships. Since gold IRA accounts are not paper-backed, the ongoing depreciation of currencies will not detrimentally affect the value of gold held in your IRA. It can withstand financial crisis, hence investing in gold gives you the opportunity to earn a substantial return on your investment in the long-term.
Gold acts as an economic barometer; as the value of the dollar decreases, the value of gold increases. Balance your investment portfolio with both paper-based funds and gold. A loss on the currency side will be balanced by the gain in the gold side.
The Bottom Line
There are many regulations and guidelines set in place by the IRS about Individual Retirement Arrangements and how these retirement plans can be used. Simply depending on the custodian may not be a wise choice for any investor. You have to keep abreast of any changes in regulations. When it comes to gold IRA, the benefits will definitely outweigh the risks as long as it is managed properly.