Physical Gold Is Something Many People Invest In

buying gold online with gold ira companiesThe 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.

Gold’s Risks

Gold IRA CompaniesWith 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.

Regal AssetsDespite 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.

Why Everyone Is Fascinated With Bitcoins

Unless you have been living under a rock, you probably have heard about bitcoins. Have you wondered how it works? Have you been fascinated by it and want to get your hands at it but do not know where to start? What’s all the fuss about? Here are some of the reasons why everyone is fascinated with Bitcoins.

First, What Are Bitcoins?

Bitcoins are purely digital money that you can send through the internet. Bitcoin is the very first decentralized money, meaning no government or central bank controls it. Bitcoin is more resistant to inflation compared to traditional currencies.

It uses peer-to-peer technology to operate. It enables instant payment to anyone, wherever he may be, without having to go through a clearinghouse or a bank. There are no pre-requisites and arbitrary limits to acquire your first bitcoins.

How are Bitcoins Created?

Similar to gold and silver that are being mined, Bitcoins are also mined – digitally. Mining is a process wherein a person uses specialized hardware to solve math problems in the bitcoin network. When they succeed, they unearth more Bitcoins. The more bitcoins are mined, the more difficult it gets to mine more information.

Miners verify transactions of every bitcoin user to assure validity and correctness. The network is encrypted with a high-level programming module to maintain the degree of confidence of its users. After verification, the transactions are recorded on a publicly transparent ledger wherein people can see the flow of their transactions. Everything is taken into account so you can always be sure with Bitcoin.

Why would you want bitcoins? As I write this post, bitcoin is trading around $250. Still interested? Me too!

How Do You Get It?

Purchase Bitcoins – This is the fastest way to get your hands on bitcoins. However, it is not easy to buy bitcoins. Buying bitcoins is lucrative for people trading it against the dollar or other local currency they are dealing with. So where can you buy bitcoins? A number of exchanges online allow you to purchase bitcoins with cash.
Earn Bitcoins – If you have a business with a website, you can give your customers the option to pay in bitcoin. It is no different than accepting payments in cash, credit card, gift cards, foreign currency or other forms of payment. If you expect that only a few people are interested in using bitcoins, you can start by simply posting a sign that you accept bitcoin. Doing so will not only help increase awareness about bitcoins but will also make your customers more at ease in using bitcoins in the future for now they know a place where they can spend it.
Mining Bitcoins – You can mine on your own or as part of a pool, although most miners choose to mine on a pool. With pool mining, the profit from any block a member generates is divided among the members of the pool. Just like mining for a raw material like gold or silver, you are compensated for your work, which is equivalent to the computations your computer calculates for the network.
Bitcoin Promotion – If you are willing to put a little bit of time and share bitcoin with your friends, you can get free bitcoins. You don’t have to hard sell the concept of bitcoins. You can become an affiliate and promote the bitcoin network. You can simply post on social networking sites to share with people what Bitcoin is and why it may serve them. If they are interested in Bitcoin and signed up through your post, you start getting free bitcoins.

So why is everyone fascinated with  bitcoins? Here’s why:

This is the first time in history that money can be privately stored and transferred.
In the same manner that the internet revolutionized information, Bitcoin is revolutionizing money and finance.
Businesses no longer need to give up 2%-4% of THEIR money to companies like Visa and Mastercard.
Since it is decentralized currency, it has the ability to separate money and state.
It allows you to transfer money instantly anywhere in the world with essentially no fees.

The Bottom Line

For the average person, there are a number of ways to get into investing and buying Bitcoins. Although no one can tell where the future of bitcoin is heading, one thing is for sure: bitcoins are hot right now and investors are betting that bitcoins are here to stay.