For hundreds of years, precious metals have been recognized as a form of currency. Today however, it can be used as a great way to diversify your investment portfolio.
Diversification With a Precious Metals IRA
When it comes to investing, diversifying your portfolio is one of the most important things you can do.
The problem is, most banks do not offer you the opportunity to invest in precious metals through your retirement account. You must have a self directed IRA in order to have this option.
According to the World Gold Council, there are four key reasons you should consider investing in precious metals.
The Four reasons are:
There is always high demand for gold.
Gold prices are not affected by things such as rising interest rates.
Gold is a great portfolio hedge.
The market for gold is almost always in balance.
If you own a self directed IRA, the IRS will allow you to own physical precious metals. There are, however, some limitations that you should be aware of before doing so.
For example, the self directed IRA must be in the possession of the Trustee.
Please note, that as the investor, you will not have physical possession of the gold. It will instead be held in a depository institution.
As with any investment opportunity, it is your responsibility to do your due diligence before taking the leap.