Gold Investing as a Safe Haven

Gold Investing iconConsidering the pasting that the world’s economy has been taking over the past few years, it’s little wonder why many investors have been flocking to precious metals investment vehicles such as gold bullion bars and coins. It’s everyone’s favorite, and has withstood the test of time as the ultimate hedge against inflation and it’s Mr. Hyde dark side, hyperinflation.

For both new and seasoned investors alike, gold investing can lay a powerful foundation not only in terms of financial protection against economic uncertainty but also provide the experience to comfortably venture into other precious metals.

It has proven to be most effective as a safe haven across the world out of all of the precious metals which are available for investment.

Gold Investing in Your IRA as a Hedge Against Uncertainty

COVID-19 RecessionIn times of economic uncertainty and market volatility, gold IRAs can be impressive performers for investors who own them.

Sadly, with increasing political, economic and financial uncertainty plaguing our country it’s more important than ever that you are doing everything you can to protect your life’s earnings.

As skyrocketing US national debt in the background is being fed by the COVID-19 recession in attempts to address the havoc being wreaked on the US economy, is your Individual Retirement Account (IRA) protected in the best way possible?

The bitter truth is not only is this national debt the highest public debt in the history of the world, it is completely unsustainable.

Rising interest rates will cause debt servicing to consume a growing share of the United States’ limited annual revenues (exceeding 10 percent of all government income imminently at today’s increased interest rates). The higher interest rates go, the worse this fiscal nightmare will become for Washington. It will only get worse over time with global consequences.

Do you really feel safe relying on a currency-backed IRA that under these circumstances may not be the best way to live the lifestyle you have planned for upon retirement?

The American Retirement Crisis

Retirement Crisis Uncertainty AheadAs has probably become disturbingly clear by now, if you’re an American or own any assets priced in US dollars, then you’re staring down the barrel of what may be the biggest financial crisis America has ever faced.

We’re not alone in our assessment. Some of the best-known names in financial analysis are deeply concerned at what’s now brewing in our retirement system, growing like a malignant tumor and feeding off the careful plans, hopes and dreams of ordinary Americans like us.

Sadly, COVID-19 has lit a match to it, and as this crisis deepens don’t expect continuing bail outs from the federal government – because this time they’re the ones adding fuel to the fire by going trillions or more dollars into unsustainable debt trying to keep COVID-19’s economic consequences under control.

Ultimately, “How are they going to end up paying for it all?” In a nutshell, as the Fed desperately pumps money into the economy in an attempt to prevent things from getting worse, your hard-earned savings are losing value.

This is why we’re trying to warn as many American families as possible, because MUCH of this is preventable by including sensible gold investing in your portfolio such as gold bullion bars and/or gold coins.

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Recession Due to CoronavirusYou might be wondering how your retirement is going to survive the brutal financial consequences of a recession due to Coronavirus.

We know exactly how you feel.

In fact, everyday hard-working Americans felt the same way back in March of 2020 when this all started. They still do!

Time and again, however, investors from all walks of life have found that a Gold IRA is a simple way that can easily put the odds in your favor for a successful retirement.

One of the most valuable and in-demand precious metals in the world, gold has always proved to be an excellent and profitable investment for an IRA. Why?

During times of economic stress, investors have typically sought “safe haven” investments – assets, i.e. precious metals such as gold, that retain their value in good markets and bad.

Historically, investors replace intangible assets such as stocks, bonds, and other “paper” representations of an asset with hard (tangible) assets that can be seen and touched.

Ownership of such assets is intended to protect real economic value against economic catastrophe, and as such it’s no surprise that gold IRAs are seeing such a growth in demand.

About Gold Investing in Your IRA

Gold and Silver in the 2007+ CrisisThe Taxpayer Relief Act of 1997 permitted the ownership of physical gold and other precious metal – silver, platinum, and palladium – bars and coins in Investor Retirement Accounts.

Gold bars that are .995+ fine and are accredited by COMEX/NYMEX / ISO9001 Certified are allowed and the type of acceptable coins for a Precious Metals IRA is restrictive, but include American Eagles of all denominations and composition. Numismatic coins or “collectibles” are prohibited in IRA accounts.

Precious metal assets in an IRA must be kept by an independent trustee or custodian (a bank, a federally insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian) and kept in a secure depository.

Individuals cannot act as their own trustees nor maintain possession of the assets in a home safe or safety deposit box.

IRA contributions are generally tax-deductible in the year they are made $6,000-$7,000 depending on age. Increases in the value of assets in an IRA are tax-deferred until the owner begins receiving dividends at age 59 ½ or later. All distributions are taxed as regular income to the recipient. Owners of a Precious Metal IRA can elect to…

  • take the physical bars or coins as distributions at a value equal to the metal’s market value on the date of the delivery, or
  • have the custodian sell the coins and distribute the cash proceeds.
Economic Collapse
“There is no precedence for the situation we are facing now. An epic battle of humanity trying to combat a new virus for which there is no cure and still no clear signal, a global asset price collapse at the end of an aging and highly indebted business cycle, and central banks with limited ammunition, desperately trying to regain and maintain control.”

Sven Henrich, NorthmanTrader

Sensible portfolio diversification simply protects. The fact that you can buy gold bullion bars and/or coins in a tax-advantaged self-directed IRA is just the icing on the cake.

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Why buy gold and add it to your IRA?

IRA Transfer Reason No. 1Gold Can’t Be Created Out of Thin Air
Like all precious metals, gold simply cannot be created by any Central Bank and as such it isn’t subject to dilution. Its finite supply has stood strong for thousands of years as a wealth hedge and has performed admirably during times of economic uncertainty, inflation, war, political concerns, and other crises that devalue currency. Precious metals serve to protect your purchasing power in the face of these negative paper asset market forces.

IRA Transfer Reason No. 2Liquid Asset with Worldwide Demand
As a recognized and trusted currency around the world, it can be exchanged for cash, products, or services. Self-directed IRA provisions allow for “in-kind” distribution of the metals out of your IRA – when you’re ready, or need, to take a distribution, you can either sell the metals in your portfolio or you can have the physical precious metals in your self-directed IRA shipped straight to your door “in-kind”. Due to consistent worldwide demand, gold has been the preferred multi-generational wealth preservation and transfer tool among the wealthy for thousands of years. Odds are relatively high that the COVID-19 sparked 2020 gold rally will continue as the growing uncertainty regarding a coronavirus-fueled deep recession and consequential shortages continue to dominate the marketplace.

IRA Transfer Reason No. 3Portfolio Diversity with Tax-Deferred Growth
A sensibly diversified portfolio helps protects you from market volatility and risk. By adding physical precious metals to your retirement portfolio, you are no longer dependent on questionable paper assets such as stocks, bonds and mutual funds. In today’s volatile economic climate, physical precious metals should play a key role in the sensible diversification of your portfolio when you’re faced with times of economic uncertainty. Most importantly, with the majority of traditional retirement plans being severely limited in their investment options along with their direct stock market exposure, your precious metal IRA allows for any potential growth to occur on a tax deferred basis.

What types of gold can I add to a Gold IRA?

The official IRA list states that the following gold bullion are allowed in your precious metals IRA…

  • American Gold Eagle coins
  • American Gold Buffalo coins
  • Australian Kangaroo/Nugget gold coins
  • Austrian Philharmonic gold coins
  • Canadian Maple Leaf gold coins

The IRS’s relaxed guidelines states a number of requirements for gold IRA coins, which means other non-listed coins may be added if they meet these requirements, such as…

  • Chinese Gold Panda coins
  • Gold Incuse Indian rounds
  • Gold Engelhard Prospector rounds
  • Perth Mint Lunar Series gold coins

Bars need to meet minimum fineness requirements and be manufactured by a NYMEX or COMEX-approved refiner/assayer – and should be ISO9001 Certified. Gold bars that are .995+ fine and meet the NYMEX/COMES/ISO9001 criteria include…

  • Perth Mint .9999 fine bars
  • Credit Suisse .9999 fine bars
  • PAMP Suisse .9999 fine bars
  • Royal Canadian Mint .9999 fine bars
  • Ohio Precious Metals .9999 fine bars

The advantages of gold investing in physical bullion bars and/or coins in an IRA are the deductibility of their purchase costs while providing a hedge for future market chaos. Nevertheless, establishing a Precious Metals IRA should be done after careful analysis of one’s personal financial and tax situation and with the advice of a trusted advisor.

Final Thoughts

Are gold bullion bars and/or coins the perfect investment?

For some, maybe, but there are other investments – stocks, bonds, real estate – that offer features that physical gold ownership does not have. No investment is perfect in all markets or personal situations.

Should gold investing play a role in your investment portfolio?

Yes, for diversification sake or what Clem Chambers, noted financial author and CEO of ADVFN.com, calls “portfolio insurance.” Chambers notes that “putting all of your money in gold is crazy, but that can be said about anything: Apple [stock], bonds, property…your capital should be carefully and diligently placed in various pots to protect you from unpredictable events. Gold should be part of that strategy.”

If you are looking to invest and have already bought gold or other precious metals, then why not also consider investing in silver? You can request your choice of absolutely free gold IRA kits by clicking below that will show you the right way to get started in diversifying your retirement into precious metals if you haven’t done so already.

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