If you are here, then you may already know that an IRA of any sort is the best way for you to fully protect your assets, even after you retire. On top of that, a precious metals IRA is currently seen as the best retirement option by many investors.
However, a lot of people, even if they want to open a precious metals IRA for themselves, don’t actually know how this works and, most importantly, why it is a good retirement option.
Therefore, in today’s article, we’ll explain why you should really look into a precious metals IRA and find the best IRA retirement option for you.
Conventional vs. Precious Metals IRA
As you may know, when it comes to an IRA, you can choose between conventional and a precious metals IRA. Conventional IRA’s are limited to paper assets. Namely, bonds, stocks, cash, and mutual funds.
Moreover, it is also known that exchange-traded funds, which focus on silver or gold mining stocks are not capable of providing you with the security you need, especially in times of volatility and market instability.
On the other hand, you can purchase and hold, even sell, precious metals with a certain type of IRA account – Self-Directed Precious Metals IRA. This type of IRA is not only tax-advantaged but also allows you to directly withdraw your bullion and have it in your physical possession, as per the normal IRA distribution rules.
Why Precious Metals?
Naturally, when choosing an IRA, you’ll have to determine which type is better for your needs, but also which type is better for protecting your assets on the market, so to speak.
In this respect, we have to look at only one precious metal. Namely, gold. Back in 2001, an ounce of gold was priced at $271. Roughly ten years later, the price got to $1900. That’s an increase of about 700%.
It’s true, there have been some cloudy periods, so to speak, when the prices decreased, but they didn’t ruin the gold and precious metals market. Instead, gold and other precious metals are now known as some of the most stable factors when it comes to economic stability.
Gold will never go out of fashion and it will never decrease so drastically in price that you would end up with a bad investment. We could say that gold is nature’s hard asset – it is unchanging and will remain unchanged.
The Best Retirement Option
Therefore, as you can see, a precious metals IRA is the best retirement option. To take advantage of such a thing, you first have to choose a custodian and fund your Self-Directed IRA account tax-free.
Then, you will have to lock the pricing on the silver, palladium, platinum, or gold bullion that you want to hold. After that, you simply complete your transaction. The payment for the metals will be issued and the bullion will be sent to your safe storage location.
The Bottom Line
In short, precious metals are money. However, they can not be printed or taken out of order. Because of this, they are seen as the ultimate savings vehicle. No matter the economic period the market is going through, you know for sure that the precious metals you’ve invested will have your back.
Instead of owning stocks or bonds that can sometimes become useless, a precious metals IRA offers you and your assets stability and safety.