Over the past few months there has been a significant fall in the prices of gold and silver. The price of gold has gone down by 27% from its one year high of $1,800. Silver on the other hand has done even worse, with its price dropping a heart clenching 43%.
This latest decrease in price of gold and silver has again revealed to the investors that these commodities are extremely volatile. It is not the first time the price has dropped so much in a single year. People investing their retirement funds should be particularly cautious when investing their IRAs in gold or silver. For this reason, it is better if you are investing in precious metals (other than gold or silver). There are numerous reasons as to why you should invest in more in precious metals.
Precious metals are immune to financial or political meltdowns, protecting us from inflation. Due to the fact that they have various industrial usages, they possess an intrinsic value. Moreover unlike the paper money, more of it cannot be printed, meaning that no matter what day and age you live in, your asset will always have a good value.
If you have a retirement account, you should seriously consider investing it in precious metals. One of the biggest benefits of doing so is that you are creating a tax haven for yourself. When you retire and your retirement fund kicks in, you will be able to sell all of your precious metal without having to worry about taxes.
There are a number of ways you can start investing in precious metals. Some are safe and conservative while others are aggressive and a bit risky. There are two options for someone who wants to invest their retirement fund in precious metals. You can either invest to take physical possession of the precious metal that you are buying, or you can own a unit of value of said precious metal on paper.
Exchange Trade Funds (ETFs) are a simple way of buying and selling precious metals. This allows you to own shares on paper.
Mining Stocks and Mutual funds is an indirect method of making an investment in precious metals while having the indirect possession of the metal.
Futures and Options allow liquidity and a great deal of leverage to the investor who wants to play it aggressively. There is a lot of risk involved as you are practically betting on metals.
Gold Bullion is one of the most popular and safest ways to invest in precious metals. This means that investors can buy actual coins and bars of metal which they can hold in their hand and keep them safe at a secure location. As actual metal will not depreciate, it is the safest way to invest your retirement fund.
Certificates allow the investors all the perks of physical ownership of precious metals without the inconvenience of storage and transportation. But as certificates are paper, they cannot be relied upon completely.
Any way you invest your retirement fund, it is always a good idea to diversify your investments. Never keep all your eggs in one basket.
If you are doing research on investing in precious metals then we strongly recommend filling out the form on the right of this article to receive a free investment kit. You will also receive a call from one of their advisors who will be able to answer any questions you may have.