When the US Congress introduced gold IRAs( Individual Retirement Accounts) into the economy, financial experts were not very positive about the future consequences. No one knew either the potential or the profit it would bring to an individual aspiring to have a diversified and solid retirement plan.
Just like traditional IRAs, a gold IRA is an account where you can store your physical gold and enjoy the benefits of tax credits and gold prices hikes.
Gold IRAs appeal as a better investment option to investors who want a diversified retirement portfolio.
Traditional and Roth IRAs invested in stocks or mutual funds are vulnerable to so many things like inflation, economical turmoil, political instability etc… You may get a good returns on paper, but when you deduct the rate of inflation from your returns at the end, you will not be pleased with the amount you get. So, all your life you end up investing in something that is not worth your time or money.
This is the reason why the US government encourages gold backed IRA. In recent years, people in large numbers are rolling over from traditional IRAs to gold IRAs. There are mainly two factors that are compelling the investors to invest in gold IRAs,
1. Gold IRA is the best way to hold physical gold.
Gold IRAs are the perfect options for people who want to own gold in bulk. Normally, people convert at least 12% -15% of their wealth into precious metals so that they can shield their hard earned assets from being affected by inflation, economic bubble bursts, currency devaluations, natural hazards etc…
2. The future of gold is bright.
Major countries are not using the gold backed economy system. For example, The US government holds nearly $540 billions worth of gold in its treasuries. Meanwhile, M2 money supply at last count was about $13 trillion as of March 12, 2017. This means that roughly only 4.46% of US dollars in circulation are ‘backed’ by gold, the rest backed by false promises and goodwill.
This not only stimulates the urgency in ‘smart’ investors to convert their fiat money into gold backed assets but also increases the value of gold due to the high demand from the growing population.
Besides, gold is being consumed for the first time in history. The gold used in millions of electronic components cannot be recycled economically. So, a lot of gold ‘consumption’ will make this already scarce precious metal more precious.
Experts say there is no bad time to invest in gold, but you have to be very careful while choosing the companies in which open your gold IRA.
How to open my Gold IRA account?
There are many gold IRA companies in the US, but not all of them are worthy enough. Among the good companies, an American based company called REGAL ASSETS is considered as the best for Gold backed IRAs, they also let you rollover from your existing IRA into a gold IRA and have the best gold storage and delivery services.
Please read their FAQs and call them directly to clarify your doubts before opening an account. Here is the link for their website – REGAL ASSETS.