As financial news continues to focus on the collapse of Silicon Valley Bank, many Americans are voicing concerns over their own deposits, as well as the security of America’s banking system as a whole. But rest assured, when you place a portion of your wealth in an IRA backed by physical gold, silver, or other precious metals, that wealth is well-protected. Here are five reasons you can put your trust in a gold IRA.
1) Gold IRAs Are Backed by Physical Gold You Can Hold in Your Hands.
When you open a gold or precious metals IRA, the funds you transfer, roll over, or deposit into your account are then used to directly purchase physical gold, silver, platinum, and palladium products. Owning a gold IRA is not the same as owning gold ETFs or stock in a gold company. The assets in a gold IRA are tangible bars, coins, and bullion that you can arrange with your depository to inspect on-site and hold in your hands. And unlike with a gold ETF, there is zero leveraging—your funds are turned directly into the precious metals held in your IRA.
In fact, you can click below to see an example of a physical precious metals IRA portfolio you can purchase through U.S. Money Reserve, including an introduction and closing thoughts from Edmund C. Moy, 38th Director of the United States Mint and Senior IRA Strategist for U.S. Money Reserve.
Many of our IRA clients receive these personalized videos so they can physically see the precious metals products that will be stored securely in an IRS-approved depository as part of their IRA. Call us today and ask how your IRA can qualify you for a video just like this at no additional charge.
2) Your Physical Precious Metals Are Stored Outside of the Traditional Banking System.
The assets that make up your gold IRA are kept securely in an IRS-approved depository. This isn’t a typical safe deposit box at your community bank—in many cases, these depositories specialize in precious metals storage and function outside of the traditional banking system. And while traditional bank deposits are only insured up to $250,000 by the FDIC (and the FDIC doesn’t insure safe deposit box contents at all), precious metals depositories often insure deposits for far greater amounts, even up to 100% of the replacement cost of your stored precious metals.
In other words, your gold isn’t being used by a financial institution as part of a larger portfolio, isn’t impacted by the systemic risks that may impact traditional financial institutions, and is likely insured for greater amounts than an ordinary bank account.
3) With a Gold IRA, YOU Are in Total Control of Your Asset Mix.
Gold IRAs stand apart from many other types of IRAs in that they are completely self-directed. While a custodian and a depository are required, all actions taken pertaining to your IRA are done at your instruction, and you are in total control of your asset mix. You are the sole owner of the precious metals in your IRA, and your custodian never makes decisions regarding your IRA without your consent. Self-directed IRAs allow you to take full control of your future and retirement strategy.
4) Gold IRAs Do Not Experience the Same Risks or Volatility as Other IRAs.
IRAs are often made up of a mixture of stocks, bonds, and other assets—usually compiled into packaged products by financial institutions. Because these portfolios are made up of paper-based assets like stocks, they are vulnerable to dramatic swings in the financial markets. Gold, on the other hand, has historically been seen as a hedge against market volatility, with gold prices moving independently or even inversely to those of other, sometimes more volatile, assets like stocks. Placing a portion of your retirement portfolio into a gold IRA can help add an extra layer of protection to your retirement and act as wealth insurance against an uncertain future.
5) When the Time Comes to Take Distributions, You Can Take Your Physical Gold Home.
When the time comes to take distributions from your IRA, you can choose to take a “distribution in kind,” meaning you’ll receive the actual physical assets held in your IRA after any applicable fees and/or taxes are paid. For example, if some of your IRA funds were used to purchase Gold American Eagle coins and you choose to take distributions in kind, you would receive those exact same gold coins straight from the depository. A gold IRA allows you to protect your retirement with real, physical gold that you get to take home and hold in your hands in the end if you choose. The same can’t be said for other IRAs comprised of paper-based assets like stocks.
In a world filled with economic and political uncertainty, millions of Americans look to physical gold to help protect what matters most. Because of the reasons listed above and more, that can include your retirement funds. Call us today and speak with a dedicated IRA Account Executive to learn more about how you can protect your retirement with an IRA backed by physical precious metals or to discuss how you can expand your gold IRA holdings for both the 2022 and 2023 years.