Are Physical Gold IRAs a Good Idea

In the current downward state of our economy, it is even more imperative that we can have as much money saved up for retirement as possible. Between IRAs and 401k’s, there are several different ways that you can grow your retirement fund. But, you do want to get the most value for your money without having to forfeit as much money for taxes, which is why you’re considering an IRA.

You’ve probably heard of and wondered about physical gold IRAs, more importantly, whether or not they’re a good idea. If you want the truth, it’s a personal decision. Certain individuals would benefit more from having solely cash in their IRAs versus gold. There are still others who are much better off having gold, but we’ll get to that later.

Now, gold is a commodity that has been through it all and has never decreased in value. It has been around since the beginning of mankind and has backed the US dollar for centuries. It has survived wars, the oil crisis, 911, the recession, and all of the other events that have caused strain on the economy. But, it has never lost its value; it has only increased in value. In fact, over the past decade, the value of gold has increased by 300%.

The US dollar, on the other hand, is getting weaker day by day. It used to be backed by gold, but now that we’re printing off more money than we have enough gold, how can that be? What if all of that money that you so dutifully stored in your IRA loses its value? What if day you decide to cash in your IRA, only to find that it has shrunk significantly in size? One way to avoid this event is by purchasing gold and putting the bars into your IRA.

That being said, gold cannot gain revenue by sitting in your IRA account, which is why having a gold-based IRA scares most people. It seems like the whole point of setting up a retirement fund is to gain interest, right? Since gold is an object and not money, you can’t gain interest in it by keeping it in your account for X number of years. As mentioned before, though, there are certain situations where having gold in your IRA will be more favorable to you than money.

If you have a no-income portfolio and don’t have any stocks or bonds that you foresee being profitable, or if your IRA is the only financial investment vessel that you have, having gold in your IRA is greatly beneficial to you. In addition, having physical gold AND cash-based IRA accounts are valuable. This is because your gold account can be liquidated and you will receive the cash from the gold for what it is worth, which will be more than what you paid for it.

When deciding to base your IRA on physical gold or through other assets, it is up to you and what you feel more comfortable with. Keep in mind, though, that gold has only increased in value, while cash is being printed off daily with nothing necessarily backing it. On the same token, having money in your IRA will guarantee interest that will help your account to grow. In either case, you will be saving for your future and creating a safe nest egg to live comfortably during retirement.