A precious metals IRA may offer a variety of benefits to those who are looking to preserve capital and diversify their portfolios. While a traditional IRA typically limits investors to stocks, bonds and similar securities, a precious metals IRA allows you to put your retirement savings into gold bullion, coins or similar materials.
Perhaps the best reason to invest in gold is that it holds its value during times of economic or political uncertainty. In fact, gold may actually increase in value during these periods because it is seen as a safe haven. Therefore, investors will typically sell stocks and put the money into gold.
Starting a gold IRA requires you to find a self-directed IRA custodian such as Mountain West IRA Inc as well as a company that will oversee your holdings. Gold companies that offer IRAs may be willing to do some or all of the work related to finding a custodian, opening your account and funding it. A precious metals IRA can be funded by writing a check or by rolling funds from your current IRA to your new account. When done correctly a rollover will not trigger a taxable event.
Although neither your custodian nor your gold holdings provider can provide investing advice, they can talk more about IRS requirements. For instance, to qualify for a gold IRA, bullion and coins must meet certain quality and packing characteristics. Furthermore, while you may be able to store gold held in your IRA in a safe deposit box, you cannot keep them in your home.