Find Best Gold IRA Companies
Secure your future investing in gold, silver & other precious metals in 2022. Tips from veteran investor below.
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✔Outstanding reputation ✔Easy process ✔15+ years
• The most common precious metals used for investing are gold, silver, platinum, and palladium
• Precious metals offer diversification and tax benefits to your investment portfolio or IRA
• Traditionally, precious metals were accumulated offline, but now they can be purchased online within a few minutes
One of the most popular ways to invest in gold in the United States is a self-directed Individual Retirement Account. With the help of specialists you can rollover whole or a part of your existing IRA or 401k to precious metal assets like gold coins, gold bars or bullion.
Top #3 Gold IRA Companies
#1
✔Over 15 years of experience
✔BBB A+ rating
✔No unnecessary paperwork
#2
✔Family owned business
✔Zero complaints
✔Secure IRS storage facilities
#3
✔Founded in 2003
✔Very high customer satisfaction
✔No fees over $50,000 investment
You don’t have to be a Lord of the Rings fan to know what Golem wanted his “precious” for. That ring was made of exactly what we want to discuss today: precious metals.
And while what we are talking about has less dark magic enshrined, precious metals were considered the first form of money that made the exchange of goods easier than the barter system. No longer was it a loaf of bread in exchange for a new pair of trousers, but instead, you could buy a loaf of bread for an agreed-upon piece of gold or silver. That made accumulating precious metals a goal, as a show of wealth, for a far longer period before investing in stocks and bonds became a thing. Over the years, more precious metals have gained popularity, with more investors taking a position in this old alternative investment class.
Why precious metals?
A few reasons for investing in precious metals are:
Hedge against inflation: The returns of precious metals tend to correlate with inflationary patterns and maintain their value.
Diversification: Precious metals returns differ from stocks and bonds, providing substantial diversification benefits.
Ease of investment: Most alternative investments require large capital outlays and may not be liquid. However, one can put a small amount of money to gain exposure to precious metals. Since these metals are available in standard forms (coins, bars) with a specific grade of purity, reselling these items is also easier
Industrial usage of these metals: Precious metals are not precious simply as a store of value. Over the years, they have been utilized in numerous industrial applications. Most of these metals are now used in electrical and electronic devices due to their unique properties
Goldco – named the #1 IRA provider by INC. Magazine
OVERVIEW
Goldco mission is to help people protect their retirement savings and build long-term wealth through the security of precious metals. Founded in 2006 in Woodland Hills, California – Goldco has thousands of 5-star reviews across the web from happy customers. Most of the reviewers mention excellent support during the investment process, simplicity of acquiring precious metals and educated staff ready to answer any questions along the way.
REASON TO INVEST WITH THEM
+ Over 15 years of experience
+ Outstanding user reviews
+ They will guide you through the whole process
WHAT COULD BE BETTER
– $25,000 minimum for IRA rollover
– Does not own storage facilities (reimburses you for the first year)
OR
click here to receive a free starter kit from Goldco including a printed guide
Augusta Precious Metals – lifetime support of your investment
OVERVIEW
Augusta Precious Metals is known for its lifetime customer support promise, having none complaints against the company since its inception in 2012 and very competitive prices. Unlike some other precious metal dealers Augusta can store your gold or silver in IRS approved storage facilities situated around the country including depositories in Los Angeles, Salt Lake City, Jackson and New York. Their 7-day protection program locks the price of the metal for one week as well as offers 100% money-back guarantee if you have second thoughts about your investment.
REASON TO INVEST WITH THEM
+ Up to 10 years of fees waived
+ Excellent educational webinars
+ Zero BBB or BCA complaints
WHAT COULD BE BETTER
– Minimum deposit of $50,000
– No online shop
Birch Gold Group – almost two decades of experience
OVERVIEW
Birch Gold Group has been in the precious metals business for almost two decades now and their customer reviews are nothing but positive. Paired with their low fees and very approachable minimum investment of $10,000 Birch Group is a good choice if you want to get into the world of precious metal investment.
REASON TO INVEST WITH THEM
+ Almost 20 years of experience
+ Fees waived on investments over $50,000
+ Minimum investment is only $10,000
WHAT COULD BE BETTER
– You need to talk to Birch rep. to get exact fees
– No own depository
Buying physical vs. investment products
| Physical Precious Metals | Investment products |
|---|---|
| It can be bought in different forms like coins, bars, bullion, and jewelry | Investment can be made through derivatives, ETFs, and companies mining these precious metals |
| Storage costs have to be borne by the investors | No storage cost involved |
| There is a threat of fraud since the actual product may not be the same as what was advertised | The chance of any fraud related to purity does not exist |
| The investor has to locate a safe site to store. Many brokers also offer secure storage but at a cost | There are no security issues while using investment products |
| The actual delivery of the product may take time if purchased online. A delivery fee is also charged | The cost for buying futures, ETFs, and stocks is minimal when compared to the delivery fees |
| Reselling the precious metal may incur some additional cost, especially for items like jewelry | Reselling or offloading the exposure is generally easier |
How to store precious metals
If you bought precious metals in physical form, you can store them in several ways.
At home: The most straightforward way to store a precious metal is by keeping it at home. While there is no cost associated with this, the risk of home storage is very high. If anyone nefarious gains knowledge of your stored metals, you could be robbed – storage in a secure safe would be best. Nonetheless, storing valuables at home is not recommended due to the security risk that it imposes
Banks: Banks offer secure ways of storing precious metals. A customer can store their precious metals in a safety deposit box or a vault. A deposit box is dedicated to a single user, whereas a vault is used to simultaneously store multiple users’ items. Users of vaults and boxes have to pay a fee for using these services. As a downside, these facilities are not available when banks are closed. A user may face difficulties gaining access to their savings during an emergency.
Depositories: Like banks, depositaries offer individual boxes or common storage areas. One primary advantage of a depository is that it is much more secure. Since it is dedicated to storing precious metals, the environment is also maintained to prevent deterioration in the stored goods. Depositaries also cover the customers through their insurance policy and protect customers if there is any loss of goods.
Gold
Why invest in gold
Gold is one of the oldest and most popular precious metals, primarily used in jewelry but also maintains some industrial uses. It is a versatile metal that is highly malleable and ductile. Considered a safe haven asset, most central banks maintain a repository of gold and fiat currencies. Since it does not easily get corroded, gold is a popular element used in electrical circuitry and electronic components. The use of gold in dentistry is also reasonably common.
Gold has been a steady performer in financial markets for decades, although it has been in a longer-term downcycle since 2011. That trend has changed in recent years, and gold has provided diversification benefits to a portfolio. Historically, one had to hold physical gold to invest in the commodity. These days, however, there are several ways to invest in the precious metal that are more convenient, with the costs dropping as well.
How to invest in gold
Coins, Bars: Government-approved mints issue gold coins and bars that have a definite purity and pattern. This allows one to hold physical gold in a standard format, enabling easier product resale. A drawback of holding physical gold is storage costs or using a secure storage facility, which will lead to higher fees. If you’re using home storage, note that there is the possibility of corrosion and other physical damage which could affect your investment.
Jewelry: Another way an investor can hold physical gold is through jewelry. Unlike bullions, jewelry is customized according to how the buyer wants. Of course, this comes with more labor costs associated with designing jewelry. Sometimes, reselling jewelry is more complicated, and the customer may have to sell at a loss even if the price of gold has risen.
Gold futures: This is a financial product that allows investment in gold without actually holding it. By buying a future, an investor locks in a price to purchase gold at a predetermined rate at a future point in time. A gain would be realized if the price at the future rate is higher than the contracted price. If the price happens to be lower, then the investor faces a loss.
ETFs: Investors can also invest in gold exchange traded funds (ETFs). These are funds that track the performance of gold. ETFs trade like stocks and can be bought and sold easily and generally with minimal costs. Investors do not have to arrange for physical storage as they can be purchased and sold in your investment accounts online.
There are other channels of investing indirectly in gold. For example, buying shares of gold mining companies is also a popular proxy to gold investment.
Silver
Why invest in silver
While it may not be as popular as gold when it comes to investing, the popularity of silver has been slowly gaining momentum. Think of Silver as Gold’s younger sibling, with more volatility but also potentially a stronger option down in the years to come. Silver is also used in jewelry and other household devices. The industrial use of silver is also far more diverse, contributing to higher demand for this precious metal. Silver is used in dentistry and photography and also forms components in alloys used for soldering. And in addition, silver is used in electrical circuits too.
How to invest in silver
Silver has been used as an alternative to gold, and the investment channels are similar for both. One can purchase silver directly or use other investment tools available.
Buy Physical Silver: One can buy bullion from online brokers or purchase it directly from offline outlets. Since silver is not as strong or malleable as gold, storing it can be difficult. Some investors buy silver jewelry or cutlery, which is another way to hold the asset physically.
Investments: Silver ETFs are a common way to invest in this precious metal using smaller amounts of money. There are silver futures contracts available on exchanges that investors can consider. One needs to be cautious while investing in futures because losses can be high when prices do not move favorably. Another option is to invest in companies that mine silver by simply buying the common stocks of these companies.
Platinum
Why invest in platinum
Platinum is another precious metal gaining popularity over the last decade. It is widely used in jewelry these days. However, the most common use of platinum is for catalytic converters in vehicles. The precious metal is also used in optical fibers and display devices, something in massive demand in the new digital age. Not to mention, it is also utilized in electronic devices for storage purposes. Interestingly, platinum also finds some application in medicinal uses for the treatment of cancer.
Like other precious metals, platinum exhibits a low correlation to traditional assets, offering diversification benefits. It has generated positive returns over the long term and is a healthy substitute for gold due to similar properties.
How to invest in platinum
Buy Physical Platinum: Platinum is still not popular as gold or silver, but many online and offline brokers have started offering platinum bullion. The variety of bullion is also limited as far as platinum is concerned, but it provides an easier way to obtain the metal with a lesser risk of counterfeit products. Platinum jewelry is also popular in Western countries and is another way investors can invest.
Investments: There are a few platinum ETFs that investors can consider. These ETFs have exposure to physical platinum and take exposures in platinum futures. Platinum exchange-traded notes (ETNs) can also be bought, but these are debt instruments, unlike ETFs representing an equity stake. Platinum futures can also be used to invest directly in the commodity. A few companies indulge in platinum mining, but since the volume of platinum mining is much lower than gold or silver, finding strong companies may be more difficult.
Palladium
Why invest in palladium
Palladium is a rare metal, and the supply of this precious metal is very limited. It is used in catalytic converters and fuel cells, and ceramic capacitors found in electronic devices. There are also uses in dentistry, watchmaking, aircraft spark plugs, and other industrial uses.
Due to an increase in its demand, palladium has drawn the attention of investors in recent years. While it may be correlated to other precious metals, it has offered an opportunity for higher returns due in large part to limited supply and increased demand.
How to invest in palladium
Buy Physical Palladium: The most common form is to buy palladium coins. Bars and other shapes are rare as far as this metal is concerned, and the use of palladium in jewelry is also not very common, although it does exist.
Investments: ETFs that track Palladium are also uncommon, but there are a few that investors can look to invest in. Palladium futures are also available in leading exchanges, and in addition, you can look to invest in palladium mining companies.
Key Takeaways
Precious metals have been a part of investors’ portfolios for hundreds of years, and today is no different. Today, it has become much more efficient and available than ever before for portfolios of all sizes. Whether you buy bullion, stocks, ETFs, or ETNs, having precious metals in your portfolio increases your diversification and can truly enhance your long-term returns.
FAQ
Gold and silver are the two most popular metals with a long history of investment and many traditional and alternative qualities. While they may not have as much upside as non-traditional precious metals, they provide a store of value during inflationary times and have protected investor wealth even when stocks and bonds have failed to deliver.
In terms of actually buying precious metals, you are taking on less risk if you purchase them through reliable sources like mints. However, there have been instances of fraud, especially when dealing with some online dealers. Investors must also be cautious while holding it in physical form, and it is advisable to use the services of banks or depositories. The investment class itself can be pretty volatile at times, so investors will need to weigh their risk tolerance and investment objectives before allocating them.
It can be difficult to time for investment specifically like any other investment. Ideally, through systemic investing, like dollar-cost averaging, one can accumulate a position over time. Traders following the price of gold and silver can use technical tools to determine price points at which investments should be made, but that does not come without its own set of risks.
Precious metals have generated positive returns over the long term. One can also be involved in trading activities and futures to generate higher returns over a short period, but the risks involved are more elevated. Investing in mining stocks is also an excellent way to generate returns, but this method may not produce the same level of diversification as direct investment in precious metals. In short, make sure you do your due diligence and keep your investment thesis in the long-term perspective.