One of the most important forms of retirement investments are Gold IRA’s. Given the profitability and value of gold both in tangible and ETF (Exchange Traded Fund) form, there is no denying that it is a very valuable source of income for many seniors and retirees and anyone looking to safeguard their wealth.
Many investment-savvy investors actually go out of their way to be able to put a portion of their life savings in gold knowing fully well that this is a highly rewarding venture which not only promises significant profit but also delivers it on a relatively quick and regular basis.
If you are considering investing in gold IRA assets, there are a few important considerations that should govern the decision on how best to proportion your money into the many options available.
- Physical or tangible gold assets are highly sought after, and recommended, as these are perhaps the safest form of investment available. There is no way an investment consisting of tangible gold assets can bottom out, meaning it is not likely to crash at a very fast rate. This means that while there are risks associated with gold investments, these risks can be adequately managed by paying attention to the price of gold on a regular basis.
- However, an important consideration to gold IRA assets in coin or bar form is that these require secure storage locations. This is where the value of a good personal safe or vault comes in – or a broker that will hold it on your behalf. In other cases, seniors opt to get a safety deposit box in order to be fully confident that the bank will keep your assets secure. The act of having to worry about the physical storage of gold is oftentimes the biggest factor that is discouraging investors from actually going out to buy physical gold. Ultimately, if you are truly convinced of the value of physical gold over other assets, this should be a trivial issue that should be one of the minor deal points when considering investing in gold.
- As to the actual assets that you can put your money into, three obvious choices come to mind. These are gold coins, gold bars, and gold jewelry. When investing in gold coins, make sure you are getting a currency that is well vetted and properly assessed. Some of the popular choices are the American Gold Eagle, the Canadian Gold Maple Leaf, and the South African Krugerrand. For gold bars, Johnson and Mathey, and Engelhard are excellent selections. These assets are well known in the industry and can be sold very quickly to an eager and highly anticipating market.
- Lastly, it pays to know the avenues through which you can buy or sell gold. The most important option in your arsenal of buyers and or sellers are coin dealerships. These are businesses that specialize in transaction precious metal assets.
If you are not the type who would want to have some tangible gold assets on you, then perhaps you want to want to try your hand at Gold ETFs. A Gold ETF is a traded unit that closely tracks the price of gold in the market. Whenever gold goes up, an ETF unit is never too far behind. This is great considering that you are still dealing with gold ventures only that you do not have to keep the actual asset with you.
Another key advantage with gold ETFs is the relative affordability of each unit. Compared to actual gold assets which can cost up to $1,600 per ounce in today’s market, ETFs can be in the region of $30 to $50 per share so it opens itself to more manageable investment sizes and allows those on a budget to still “play with gold” at a price that suits their goals.
With Gold ETFs, one has to go to a stock broker to access the data necessary to make informed decisions on the investment. For those with no prior stock market experience, this can be a daunting challenge given all the details to pay attention to. Which ETF do you buy? How much should you put into the investment? When you do sell? And more importantly, how do you learn the trading platform offered by brokers through which you can buy or sell ETFs on a regular basis? For seniors and retirees, working with a computer can be intimidating and off-putting.
Still, with the strength of gold as an investment, it is not practical to just ignore it as an investment venture. Particular to the case of seniors where income solely depends on passive income opportunities such as gold IRA assets, it is worthwhile to look at gold and the opportunity for growth that it offers.
Make sure to properly cover your bases by looking at gold IRA asset ventures and pick the one that suits your needs, lifestyle, and investment goals but in the short-term and in the long-term.