As global economies become more intertwined, what happens across the world can have evermore impact at home. As geopolitical tensions increase in the Middle East and the Ukraine, the persistent selling of U.S. Treasuries by China, and the European debt crisis worsening, Wall Street reacts with caution. Investors fear losing value in the market and look for other safer havens for their money. Where do they go?
It is not only fear of a worsening stock market that could drive gold prices up. China and India both have been turning to gold as a means of protecting their respective currencies against the volatility of their currencies and have become two of the world’s leading gold importers. The holding of interest rates by the U.S. Federal Reserve and seasonal demand have also had positive affects on the price of gold.
Right now, gold is experiencing rises in price due to a spate of “safe haven” buying by concerned investors who fear losing value in the stock market. As Wall Street becomes more risk averse, gold gets a boost. It is for this reason that gold has been considered a secure store of wealth for over five thousand years. Other recent events including the holding of interest rates by the Federal Reserve and seasonal demand have also had a positive effect on the recent value of gold. But even with these factors aside, gold has still proven itself to be one of the best performing commodities of 2014.
All considered, there is no better time to invest in gold than now.
What is a Roth IRA?
Put simply, a Roth gold investment is a retirement account that allows earnings and deductible contributions to grow tax-free. Different from a traditional account, according to Roth IRA rules all the tax benefits associated with a Roth individual retirement account happen when withdrawals are made: withdrawals, subject to certain regulations, are not taxed at all. There are no tax benefits associated with contributions because all contributions to a Roth are made with after-tax monies. Because of the tax treatment, some consider the Roth gold account to be the best gold IRA available.
When it comes to retirement plans, a gold Individual Retirement Account is a must. While it may seem mysterious, a gold account is no more complicated to initiate and set-up than a traditional account. What most people don’t know is that in addition to holding paper assets like stocks and bonds, IRAs – both self-directed traditional and Roth – can hold precious metals. One advantage that a gold-backed account has over a traditional account is that you can choose to take possession of the physical gold that backs your investment when your term ends. This is not an option for a traditional account.
How Can I Convert to Gold?
When you purchase the physical gold or silver within your existing IRA you will not take possession of the metal. It is stored at an insured, regulated depository in your name. Once you reach the age of 59 ½ you may then take delivery without penalty.
The transfer process can be completed in two weeks. Using your existing IRA information, your dealer can help you complete the paperwork. There are no tax implications for transferring assets from one qualified retirement plan into another. The types of metals allowed in a precious metals retirement accounts are U.S. gold, silver, and platinum America Eagles coins as well as certain other bullion coins or bars that meet IRS requirements.
Things Every Investor Should Know
Before an investor proceeds into any transaction they should have all of the best information. To help with the process there is a special mini-course entitled “Essential Guide to Successful Gold and Silver Investing.” This course is aimed at those with no prior experience with gold-based IRAs and is available as a FREE download. It was designed to cover a variety of common questions and pitfalls and to help investors make informed decisions as to whether investing in precious metals is right for them. The is full of tips and expert advice to help new investors make decisions that could save them thousands of dollars.