What is a Precious Metal IRA?
A Precious Metal IRA is an individual retirement account that allows you to hold physical gold, silver, platinum, and palladium in your retirement portfolio.
Why invest in a Precious Metal IRA?
Precious metals have long been considered a safe haven investment and a hedge against inflation. Gold, silver, platinum, and palladium are all tangible assets that have historically maintained their value.
Precious metals are also a diversification tool that can help protect your retirement portfolio from market volatility. When the stock market is down, precious metals may be up.
Investing in a Precious Metal IRA is a way to protect your retirement savings and give yourself peace of mind for the future.
How to set up a Precious Metal IRA?
The process of setting up a Precious Metal IRA is similar to setting up a traditional IRA. You open an account with a custodian, who will hold and manage your assets.
You then fund your account and choose the precious metals you want to purchase. Your custodian will store your precious metals in a secure facility and insure them against loss or theft.
When you retire, you can take distributions from your Precious Metal IRA in the form of physical precious metals or cash.
What metals can be invested in through a Precious Metal IRA?
Gold, silver, platinum, and palladium are all eligible for investment in a Precious Metal IRA.
What are the risks associated with investing in a Precious Metal IRA?
Like any investment, there are risks associated with investing in a Precious Metal IRA.
The most significant risk is the possibility that the price of the precious metals you hold in your IRA will go down. However, precious metals have traditionally been a safe haven investment and have maintained their value over time.
Another risk to consider is the potential for fraud. There have been some cases of precious metals dealers selling counterfeit or overpriced metals to investors. It is important to do your research and work with a reputable dealer to avoid this type of fraud. We recommend using Goldco, Augusta Precious Metals or any of the other well known and reputable custodians we present here.
Short FAQs about Precious Metal IRAs
How long does it take to set up a Precious Metal IRA?
The process of setting up a Precious Metal IRA is similar to setting up a traditional IRA. You open an account with a custodian, who will hold and manage your assets.
You then fund your account and choose the precious metals you want to purchase. Your custodian will store your precious metals in a secure facility and insure them against loss or theft.
How much does it cost to set up a Precious Metal IRA?
There are fees associated with setting up and maintaining a Precious Metal IRA. These fees typically range from $50 to $100 per year.
What if I already have a traditional IRA?
You can roll over your existing traditional IRA into a Precious Metal IRA. You will need to work with a custodian who offers this type of account.
Can I take distributions from my Precious Metal IRA before retirement?
Yes, you can take distributions from your Precious Metal IRA at any time. However, you may be subject to taxes and penalties if you withdraw funds before age 59 1/2.
The bottom line
A Precious Metal IRA can be a valuable addition to your retirement portfolio. Precious metals have traditionally maintained their value and served as a hedge against inflation. They can also help to diversify your portfolio and protect it from market volatility.
