Archive for the ‘Gold Bullion’ Category

Types of Gold Investing

by IRA Rollover in Gold, Gold Bullion, Gold Investing, Gold IRA with Comments Off on Types of Gold Investing

If you are thinking of buying gold as a retirement investment there are a few ways you can accomplish that goal.  Some buy gold as a hedge against inflation while others are investing in gold for retirement.  With both you’ll have security and wealth that inflation and fickle economies can’t touch.

Buying Gold Stocks

Gold stocks are actually shares in working gold mines.  This can be a lucrative investment, especially if the mine runs smoothly and finds some great veins of gold that require minimal expenditure to extract.  There are some risks to gold stocks because their value depends on how well the mine does.  Like any other type of stock, you can monitor it closely and sell at a profit if the company appears to be in trouble.

If you decide to invest in gold stocks you should make sure that you deal with a licensed commodity broker that has a good reputation among his or her clients.  You should avoid those who try to pressure you into an investment during your first contact.

Mutual Funds

Mutual funds are a “basket” of investments that are comprised of several interests.  They may hold interests in several precious metals, including gold, as well as other commodities such as oil, grains, or technology.  Mutual funds generally do well because if one of the stocks performs poorly the others might be making money hand over fist.  This basket of investments spreads your funds across several strata of interests so that you can make consistent profits even if some of the stocks or commodities that comprise the basket don’t do well at times.

Mutual funds are considered a conservative investment because of their generally consistent returns.  Many people over the age of 50 like mutual funds because they are generally low risk and allow them to invest in gold, other precious metals, and many profitable commodities.

Gold Bars and Bullion

When investing in physical gold and silver you’ll have several options.  Both come in bars or ingots as well as in bullion form such as coins.  If you’re using it for a gold backed IRA account you must buy certified purity in an approved form.  Bullion is a bulk quantity of a precious metal that can come in bars that are stamped with their purity content after having been melted and cast.  Bullion coins are not used as legal tender but kept as assets.  Several countries around the world produce bullion coins but those made in the U.S. are guaranteed as to quality, purity, and weight.

There are many reputable gold bullion dealers that you can buy bars or coins from.  If you’re considering buying bullion you can shop around for dealers who charge the lowest premiums and who have the most satisfied clientele base.

Collectible Coins

Often called numismatic coins, these assets are valued according to their condition and how rare they are.  You can buy a US gold double eagle (face value of $20) from 1877-1907.  These are 90% gold and weight .9675 ounces.  When you buy such coins you will be paying not only for the gold content but for the rarity and collectability.  You usually end up paying much more for numismatic coins than you would for a similar weight in a gold bullion coin or bar.  You are gambling that your coin will rise in value due to its rarity.

Numismatic coins are not eligible for inclusion in a gold back IRA.  Their value is also tied to what people will pay for them beyond the gold content.  Since you are paying much more for a numismatic coin than for a non-collectible gold bullion coin, you must consider the chances of getting your investment back before you buy them.  A numismatic coin that costs you $2500 today may sell for much less if you have to liquidate for any reason.

Gold as a Hedge against Inflation

Gold will always have value no matter which form you buy it in.  People are using gold as a retirement investment specifically for that reason since it is not affected by whether the economy is doing well or poorly.  Whether you buy it for a gold IRA account or store it yourself on your premises or in a secure facility, you can be sure that your gold will never lose its value.  Gold is a foolproof way to preserve your wealth and build a secure retirement plan.

If you are thinking of buying gold as a retirement investment there are a few ways you can accomplish that goal.  Some buy gold as a hedge against inflation while others are investing in gold for retirement.

regal assets

Why Physical Gold Storage is Important

by IRA Rollover in Gold, Gold Bullion with Comments Off on Why Physical Gold Storage is Important

If you’re thinking about making your IRA more secure by purchasing gold and other precious metals you may be wondering about physical gold storage — can you keep it in your home?  Where will it be safe from damage, vandalism, natural disasters, or theft?  You can rest assured that your gold and other precious metals that you buy for your IRA will be safe, secure, and available if and when you decide to make a withdrawal.

The Tax Payer Relief Act was passed in 1997 to allow precious metals to be included in IRA accounts.  This means you can purchase gold, silver, palladium, and platinum for your IRA rather than be confined to investing in the stock market and other riskier ventures.  However, the metals have to be 99.9% pure no matter which metal you choose.  Examples of acceptable gold are bars, ingots, US gold and silver eagles, Canadian Maple Leaf, etc.

Federal law mandates that all precious metals purchased for IRA accounts be stored at a federally licensed IRA custodian.  It is the

physical gold storage

same law that applies to stock certificates or a money market account that is part of your IRA—you cannot physically hold these assets but must store them in a safe, impenetrable facility.

One of the most well known depositories for gold and precious metals is the Delaware Depository Service Center (DDSC).  This is located in Wilmington, Delaware, and is an approved center for storage and distribution of precious metals.  It stores precious metals and provides shipping services to investors worldwide, including financial institutions and industrial giants.  It is heavily insured so that if anything should happen to your gold despite the security systems and environmental protection amenities (such as sprinklers and smoke detectors), you don’t lose the value of your precious metals.

There are two ways your precious metals are stored.  Fungible storage means that your gold or other precious metals are grouped with other depositors’.  When you take a distribution you may get a different item of gold than you deposited but the purity and value is exactly the same.  Segregated storage means that your metals are stored separately and you get the exact same items that you purchased when you take a distribution or sell them in the future.

You will pay a storage fee for your precious metals based on the value of your account. Segregated storage fees are a bit higher than Fungible storage fees.

So what if you want to store gold or precious metals in your home or a bank box?  You can certainly do that but they cannot be a part of your IRA.  Some people do purchase gold and store it in a safe on their own premises.  However, there is always the possibility of theft or natural disaster that can compromise its safety.  You can also store it wherever you choose once you withdraw it as a distribution from your IRA but that can be risky.

Purchasing gold for your IRA is an excellent way to escape the ravages of inflation, hyperinflation, and economic uncertainty.  Having a secure place for physical gold storage will give you peace of mind as you watch your gold and other precious metals appreciate.

 physical gold storage

Can You Buy Gold Bars?

by IRA Rollover in Gold, Gold Bullion with Comments Off on Can You Buy Gold Bars?

When people are looking for safe investments that will hold their value they generally ask, can you buy gold bars?  Fortunately, the buy gold barslaws about gold have changed since 1933 when everyone had to turn in their gold to the federal government.  In 1974 that law was repealed by President Gerald Ford.  The new law allows people to own gold bars, gold coins, gold bullion and to buy gold ingots and gold certificates.  Gold cannot be specified as a payment of a specific contract, though.  In other words, you can buy gold but no one can contract for goods or service and demand payment in gold.

Gold bars come in many sizes, enabling people without vast amounts of cash on hand to buy and own gold.  Most people to buy gold save a little each month and buy gold bars annually or quarterly.  Some buy an ounce at a time, some several ounces, and some buy smaller gold bars according to what their budget can handle.

Buying gold bars is popular right now because bars carry lower premiums than gold bullion coins.  You can save as much as $50 per ounce when you buy a gold bar instead of an American Gold Eagle coin.  Gold bars come in all sizes:

  • 1 ounce bars
  • 10 ounce bars
  • 1 kilo (32.15 troy ounces)
  • 100 grams (3.215 troy ounces)

All these types of gold bars are at least 99.5% pure as per federal mandate.

One ounce bars are affordable for many people but more than 30 types of bars on the market today. You can get a gold bar as light as half a gram but generally, the lighter the bar the higher the premium.  The standard bars held in federal gold reserves by central banks are 400 troy ounces, which equals 438.9 ounces in standard measurement.

If you want a gold bar that easy to sell, should you have to, 100 gram bars fit the bill.  10 ounce usually bought by people that are buying several hundred ounces.  Those who want less than a hundred ounces may be interested in the 1 ounce bars or 100 gram bars since both offer more flexibility if you should need to sell some of your gold for some reason.

One ounce bars are a good buy for those who can’t spend a lot all at once.  The mark-up is less on a one ounce bar than on a one ounce bullion coin and you can save as much as $40 per ounce.

You can also buy 5, 10, and 20 gram gold bars at smaller premiums than fraction-ounce gold coins.

As you can see, buying gold bars rather than gold coins is smarter economically and they are easier to liquidate.  You have a lot of choices when it comes to buying gold bars, which makes them a great asset to include in an IRA.

So in a nutshell, when you ask “can you buy gold bars?” the answer is yes you can and yes you should!