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Silver Surge Green Energy Revolution Could Be Key to Possible Silver Surge Mar 22, 2021 - There’s no disputing that both gold and silver posted impressive performances in 2020. As financial markets spent the balance of the year working to recover from the springtime pandemic shellacking, precious metals marched to the beat of their own drummer and climbed solidly higher. The drummer, in this case, appears to have been both the […]

Recent Risk To Reward Blog Articles

Trump vs. Biden: How Will the Election Results Impact Gold?

Despite nearly three months of trading sideways, gold’s prospects continue to look excellent. The…

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Gold Favored by Hedge Fund Giant as Defense Against Economic and Social Tumult

Periods of pullback in surging asset classes can present renewed buying opportunities. Once an…

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Gold Is Spinning Its Wheels Right Now – and That’s a Good Sign

There’s no disputing that gold has been on quite a run for some time…

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Other Gold News From Around The Web

Kitco News Latest News on precious metals from Kitco!

  • Gold Futures Price Analysis: Gold is not out of the woods just yet
    on April 21, 2021 at 9:11 am

    (Kitco News) - Gold has had an impressive move higher and leading into the European open the price was 0.40% in the black. Interestingly, the yellow metal still has not managed to get and close above the 30th November 2020 low of $1767.2/oz. If this level is broken it would be a decent hint that higher levels could be on the horizon.

  • Gold pushes higher ahead of the European market open
    on April 21, 2021 at 6:54 am

    (Kitco News) - Gold and silver are once again trading higher leading into the European open. Gold is 0.40% higher at $1785/oz while silver has moved up 1% to reach $26oz again.

Blog | SchiffGold SchiffGold is precious metals dealer specializing in gold and silver bullion.

  • Peter Schiff: Has Ben Bernanke Ever Told the Truth?
    by SchiffGold on April 20, 2021 at 12:59 pm

    Ben Bernanke served as the chairman of the Federal Reserve from 2006 to 2014. He famously told Congress the Fed was absolutely not monetizing the debt in 2008. He said the difference between debt monetization and the Fed’s policy was that the central bank was not providing a permanent source of financing. He said the The post Blog first appeared on SchiffGold.

  • China Greenlights Massive Increase in Gold Imports
    by SchiffGold on April 20, 2021 at 12:10 pm

    China has opened the door to billions of dollars in gold imports. Reuters cites five sources indicating that Beijing has greenlighted the import of 150 tons of gold valued at around $8.5 billion at current prices. The report notes that China’sudden appetite for gold could potentially “support global prices.” China ranks as the world’s gold The post Blog first appeared on SchiffGold.

Silver Doctors Gold, Silver, & Finance News

  • Gold Pulls Back After A Strong Rally
    by The Doc on April 21, 2021 at 12:00 am

    In the short-term, gold has rallied $100/oz. That’s always a good time for traders to shift a bit of gold into fiat, and to sell some miners. A pullback towards… […]

  • Long War: Can’t We “Just March Out” Of Afghanistan?
    by The Doc on April 20, 2021 at 10:00 pm

    The war has been a disaster from day one. So why wait to end it? by Ron Paul of Ron Paul Institute for Peace and Prosperity Last week President Biden […]

Even in today’s prosperous economic landscape, smart investors are looking at ways to diversify their portfolio by investing in precious metals.

One such method is using gold or silver IRAs, which not only provides investors with all the benefits of holding physical gold, but also provides tax advantages.

If your are considering investing in precious metals, you may have the following questions:

  1. Why should I invest in gold?
  2. What is a precious metal IRA and how does it differ from a regular IRA?
  3. What are the advantages of using IRAs over other methods of investing in gold?
  4. Is a Gold IRA suitable for me?
  5. Can I use my 401k to buy gold?
  6. What should I be looking for in a gold investment company?

Why should I invest in gold?

Intelligent investors are investing in gold for 3 main reasons:

Gold provides a safe haven and hedging component to a portfolio

The value of gold has been recognized for millennia, and it holds true to this day. With the United States money supply on a constantly increasing trend, which is normal under a fiat currency system, the dollar is at constant risk for devaluation. Inflation is a fact of life, and in today’s economic climate, people are no longer surprised if bonds default or the value of stocks go to near zero.

Gold will always hold its value, so the solidity in the price of gold is a well-known hedge against inflation.

Gold is a powerful mechanism of obtaining portfolio diversification

A diversified portfolio’s overall risk is less than the sum of its parts; this is achieved through investments that are lowly correlated with each other. The correlation of gold with stock market and bond prices has a historical range that is negative (particularly during recessions), to low positive, and usually stays lower than 40%.

Gold has demonstrated good historical returns on a long-term basis

In the last five years, the pice of gold has been somewhat volatile, and has even been on a downward trend at times. But don’t fret too much – over the longer haul of a (10 year) basis, average returns have been at 5.71% (as at Dec 2015). This number is far above 10-year US Treasury yields, for example.

gold investment risk pyramid

Source: goldcore.com

What is a precious metals IRA and how does it differ from a regular IRA?

What is a self directed IRA?

A Gold IRA or Gold Backed IRA is a general term used to describe self-directed IRA accounts invested in metals. The term ‘self-directed’ means that the account owner is responsible makes all decisions related to investments in the account. These types of Individual Retirement Accounts are also know as a ‘precious metals IRA’; under IRS regulations, self directed IRAs are allowed to invest in 4 types of metals, namely gold, silver, platinum, and palladium.

Both have traditional IRA (tax-deductible contributions for the year while withdrawals during retirement have ordinary income tax rates applied) and Roth options (contributions are not tax-deductible but withdrawals typically are free from tax). These accounts also may have a flat fee, storage fee or percentage based fee attached to them.

What are the advantages of using approved IRAs over other methods of investing in gold?

The four common methods an investor can use to add gold to his or her portfolio are:

1. Gold Coins and Bullion

The direct purchase and ownership of physical gold coins and bullion. An investor may buy the gold directly from various gold IRA companies and store it in a safety deposit box with a broker, or via a Gold IRA. As IRS regulations stipulate that the IRA owner cannot physically have the gold in his or her possession, a Gold IRA custodian will be responsible for storage.

2. Gold Exchange Traded Funds (“ETFs”)

The ETF owns the gold while the investor purchases shares in the fund, which trade according to gold’s market price. Typically, ten shares would be equivalent to one ounce of gold. The shares can be purchased from the ETF directly or invested in through a normal IRA.

3. Gold Exchange Traded Notes (“ETNs”)

ETNs are debt instruments that track a benchmark such as the price of gold, with the yield being equivalent to investing in gold as a commodity. As no gold is physically owned by any party, investors take on the direct risk of the ETN issuer, which would have its issuances classified as unsecured debt obligations on its balance sheet.

4. Gold Miner Stocks

The most indirect method. It is very important to carry out specific due diligence on each gold miner company, evaluating their individual profiles such as mining reserves, production levels, and operating costs. Gold miner stocks typically exhibit higher volatility compared to gold itself; this is because the market considers gold miner stocks as a leveraged method of investing in gold.

In the opinion of many, Gold IRA investing is the most advantageous method, especially for these 2 reasons:

Ownership of High Grade Physical Gold

Simply put, direct ownership of gold allows the investor to reap the most benefits out of buying gold investments. IRS regulations also strictly cover the quality of gold that can be bought using a precious metals IRA, ensuring only 99.5% (24 karat) minimum quality; this does not apply to the other methods.

There is no guarantee on quality of gold held under ETFs and investors may face stock  market redemption issues. ETNs have no principal protection as there is no actual gold involved, while gold miner stocks have the highest volatility risk and require the most research and specialized knowledge to invest successfully.

Highest Returns Post-Tax

The IRS classifies precious metals as collectibles and gains on such investments held for under a year will be taxed as ordinary income, similar to short-term capital gains. If held over a year the maximum collectibles tax rate of 28% is applicable even though such gains will be taxed as ordinary income.

By way of comparison, the long-term capital gains rates vary from 15 – 20%. If invested through a gold backed IRA, the marginal tax rate of the individual investor is applied, instead of the maximum collectibles tax rate of 28%. This case study from the Journal of Accountancy shows that annualized after-tax returns are highest when using top Gold IRA companies to invest in gold.

Is a Gold IRA investment suitable for me?

Only you, as a unique individual, can make that decision.

One notion that we would like to dispel, however, is that gold, silver, platinum and palladium is an investment only for sophisticated investors. Anyone can invest in gold, and Gold IRAs have made the process simpler than ever. Nevertheless, appropriate due diligence should be carried out prior to making any investment decisions, with a careful consideration of the benefits and risks involved. It is important that you are also aware of the risks involved such as:

Market Volatility Risk

The price of gold is still subject to market forces, and they have been significantly volatile, with speculative forces being pinpointed by analysts as the source of much of this volatility. This means that gold may not be the best for short-term investors, although historical data has shown more than adequate long-term returns on investment. Analysts are speculating that gold may be fast approaching peak production, which bodes well for long-term gold price prospects.

gold discovery chart

Source: miningweekly.com

Risk of Theft or Fraud

As IRA owners cannot physically have the gold in their possession, they would have to go through a broker and a custodian, exposing them to risk of fraud or theft. Fortunately, this risk is easily managed by ensuring that an trustworthy gold investment company is chosen that has a proven track record. Using out website as a resource, you’ll be able to find the overall best company and evaluate them via consumer protection services such as the Better Business Bureau, Business Consumer Alliance and TrustLink.

Regulatory Risk

IRS regulatory decisions can often seem highly arbitrary and vague, and sometimes appear to be made without the taxpayer in mind. Hence there is always a risk that the IRS may change its regulations pertaining to Gold IRAs. While we cannot do anything about it, many believe this risk as minimal and it would be silly to not consider investing with metal companies for this reason alone.

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Featured Article

Economic Vanishing Point

Diminishing Prospects for a Quick Recovery Bode Well for Gold

Not so long ago, experts were telling us the economic recovery from COVID-19 would be quick. That … [Read More...]

More Risk To Reward Blog

  • Experts: Economic Recovery Loaded With Uncertainty
  • Coronavirus Pandemic Sparks Unprecedented Chaos in Financial Markets
  • Sinking Automotive Industry Driving Global Economy to Recession

2021 Top Companies

  1. 1

    Augusta Precious Metals

  2. 2

    Noble Gold

  3. 3

    Goldco

  4. 4

    Birch Gold

  5. 5

    APMEX

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Other Metals News

  • Gold Futures Price Analysis: Gold is not out of the woods just yet
    on April 21, 2021 at 9:11 am
  • Gold pushes higher ahead of the European market open
    on April 21, 2021 at 6:54 am
  • Greenland Minerals requests talks with new gov't
    on April 21, 2021 at 3:01 am
  • BHP ups copper guidance
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  • Gold Pulls Back After A Strong Rally
    by The Doc on April 21, 2021 at 12:00 am

Risk to Reward: Finance Blog

  • Green Energy Revolution Could Be Key to Possible Silver Surge March 22, 2021
  • Trump vs. Biden: How Will the Election Results Impact Gold? October 29, 2020
  • Gold Favored by Hedge Fund Giant as Defense Against Economic and Social Tumult October 17, 2020
  • Gold Is Spinning Its Wheels Right Now – and That’s a Good Sign August 28, 2020
  • Diminishing Prospects for a Quick Recovery Bode Well for Gold June 16, 2020

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  • Silver IRA – The Case For Silver
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How We Rank Our List

At IRAGoldAdvisor.com we like to say, “We don’t rank sites, YOU do!” We combine a number of “trust factors” from on independent consumer protection organizations to arrive at our ranking scores.

We believe that companies with a lot of happy clients (positive reviews) who are able to keep complaints low (few or no customer complaints), are most likely to provide you with the great service you’re looking for. Companies with those “stats” rise to the top of our list.

Some of our ranking factors:

  • Rating with Better Business Bureau & Business Consumer Alliance
  • TrustLink “Star” Rating
  • Number of Positive TrustLink Reviews
  • Number of Other Positive Reviews (BBB, BCA)
  • BBB Consumer Complaints (deduction)
  • BCA Consumer Complaints (deduction)
  • Negative Consumer Reviews (deduction)
  • Length of time in business

Don’t forget to bookmark our list page and use it as a handy resource to help locate a great gold company.

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  • The Best Gold Companies
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    • #1 Augusta Precious Metals
    • #2 Noble Gold
    • #3 Goldco Precious Metals
    • Birch Gold Group
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    • Monex Precious Metals
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    • Rosland Capital
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  • Blog: Risk to Reward
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    • How To Select The Most Trusted Precious Metals Company
  • Gold Quarters
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    • TSP Fund Performance
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