Best Way to Buy Gold For Investment? Physical Bullion/Coins or Funds

There are a few simple must-know things to understand before your journey with precious metals begins. Over recent years, many precious metals investments have flooded the marketplace; unfortunately, many of them are dangerous to the long-term financial risk of investors. Though many may offer benefits, they can also multiply one’s risk.

It is wise to stay away from numismatic coins and jewelry, gold ETFs, CFDs, or even gold funds held with Forex brokerages. Holding any paper form or derivative of gold, futures contracts, etc. is a risk you should not willingly take.

What Is the Best Way to Buy Gold For Investment?

What is the Best Way to Buy Gold

A physical Gold IRA (which constitutes real physical bullion coins and bars that you can put in a safe) is ultimately the best way to buy gold for investment purposes. This is especially true for long-term investing, with its main purpose being to hold into your retirement years.

But not all that glitters is gold.

While many investors use traditional assets like gold mining stocks, bonds, and REITs or real estate for security, recent studies show that physical precious metals IRAs are the key to steadily increasing people’s retirement portfolios.

Why a Gold IRA is the Best Way to Buy Gold?

People who choose to invest in gold in its paper form such as stock certificates or electronic funds do not become owners of the actual product; rather, the custodian is usually a bank. Banks can become insolvent and collapse. There can be bank runs and nobody is guaranteed to get bailed out. That is what FDIC insurance is for. This is where problems may arise. If the bank chooses to appoint sub-custodians, who in turn appoint sub-sub-custodians, it may become difficult to determine chain-of-custody and the exact location of where your precious metals are stored.

Numismatic coins are distinct from bullion coins. People who invest in numismatic coins are already deep in the hole as soon as they buy the coins. They lose anywhere between 20% and 40% right off the bat. Many dealers tend to build mythos around jewelry and numismatic coins, as if they hold magical advantage to plain bullion coins. However, they hype numismatic coins and jewelry because they are good for the seller, not the buyer.

Make sure you’re not buying numismatic coins.

So, in actuality the same physical metal may be owned by the same individual or different entities at the same time. Many experts believe that gold and silver ETFs may hold significantly less value than the amount of metals they purportedly own or none at all.

These are all good reasons why gold individual retirement accounts are increasingly important for people who wish to stabilize and diversify their retirement savings.

BEWARE: Buy IRS APPROVED Physical Gold Bullion Only

People who want to buy IRS approved physical coins and gold bullion such as the World Gold Coins, Liberty Head, St Gaudens, Indian Head, Morgan Dollar, Peace Dollar, gold bullion, silver bullion, and platinum bullion should try one of the top gold IRA companies in the business. They have many of the IRS approved bullion on hand at all times.

IRS approved precious metals

Historically, gold has always moved counter to the direction of bonds, stocks and mutual funds. People who possess a gold IRA account can increase their accounts’ potential. Contrary to other investments that operate under extreme benefits and losses on the financial continuum, gold is relatively stable.

Rollover 401(k) into Precious Metals + Tax Benefits

A 401(k) is a tax qualified retirement savings plan that allows workers to put away some money and invest a portion of their paycheck. Individuals cannot withdraw from their 401(k) without incurring penalties. The Taxpayer Relief Act of 1997 made it possible for IRA accounts to contain precious metals. Due to the declining value of the dollar and inflation, many people are choosing to rollover their IRA funds into precious metals such as gold, platinum, or silver.

The difference between a transfer and a rollover is that a rollover allows individuals to be responsible for the funds they receive from their 401(k) and getting the funds deposited into their IRA plans to avoid penalties.

A gold IRA rollover account is a non-gold savings account turned to a gold IRA. For the most part, many people do not invest primarily in gold. Most Americans tend to invest in bonds, equities and stocks. Due to the high rate of appreciation and the potential of these types of investments, many people tend to restrict themselves to these types of investments. However, an individual looking to benefit from the numerous benefits that gold brings should consider a gold IRA rollover account.

Traditional vs. Roth Gold IRAs

The difference between traditional IRAs and Roth IRAs is regarding when an individual pays taxes on the money invested. With traditional IRAs, you’d pay taxes when withdrawing money, but with Roth IRAs, it is the exact opposite. You pay taxes on the front end.

The main benefit is that your investment is allowed to grow tax-free So as the price of gold rises so does your retirement nest egg.

There are other differences too but Roth IRAs offer more flexibility when it comes to withdrawing funds, and individuals can leave their savings in their accounts for as long as they want.

If you think you are ready to secure you retirement through physical gold bullion we suggest contacting our current #1 dealer/custodian.

We want to make absolutely clear that these are not pushy salespeople you’re calling. These are expert investment representatives available to educate you about the process. There is no obligation, just free information from an industry respected organization. Opening a Gold IRA is easy and straightforward.It all starts with filling out a form to receive your investor education kit.

* Or if you’d like you may click the image above to receive free gold investing literature. After entering your info they’ll call only to request your valid address to send out the physical kits.

We have also done a full company review here.