Let’s face it…Investors today are inundated with choices. You can invest in stocks, bonds, ETFs, mutual funds, real estate, collector cars, and more. While some of these investment choices can potentially offer high returns, they all come with their own sets of risks as well.
Stocks can drop 10, 20, or even 50 percent or more in the blink of an eye. Missed earnings, corporate theft, regulatory troubles… You name it… Stocks come with some considerable risks.
Bonds can lose significant value with changes in interest rates. Bond prices and interest rates move inversely of each other. As rates rise, bond prices may fall. Corporate bonds and even government bonds can become worthless overnight as bankruptcies and defaults can render them valueless. Just look at what bond processes have done this past year as inflation hit 40-year highs and as the Federal Reserve got aggressive with its rate increases.
Mutual funds, ETFs, and other paper investments also carry risks. A mutual fund is simply a group of stocks while an ETF is an exchange-traded security that is designed to track an index, commodity, bond, or basket of assets. These paper assets are also subject to significant potential loss.
Collectibles such as cars, art, or stamps. These types of assets can offer significant upside potential but also offer significant downside potential. Not to mention the risks of theft or loss.
What about physical gold held within an IRA account?
Physical gold held within an IRA account may potentially offer some distinct advantages over these other investments.
Like many other asset classes, gold offers significant potential upside, but also carries the risk of downside. Gold prices can appreciate significantly and can also depreciate significantly.
What makes declining gold prices different than declining stock or mutual fund prices?
The fact that you own the gold itself.
That’s right. When you use your IRA account to invest in physical gold, you are getting actual, physical gold coin and bullion. This gold bullion can be held in the hopes of future price appreciation or can be sold if necessary. The point is, you have an actual physical asset that cannot default, declare bankruptcy, or otherwise lose value due to poor management or corporate greed. Put simply: There is zero counterparty risk when you buy physical gold bullion.
Some other comforting potential benefits of a gold IRA include:
When you purchase a coin or bullion in your IRA account, it must be held in an approved depository. These facilities offer state-of-the-art security and would be extremely difficult, if not impossible, to penetrate.
The depository and your IRA custodian will provide a detailed and timely accounting of your physical gold holdings. This way, you always know exactly what you have and what your holdings are worth.
Some depositories, such as The Delaware Depository, may even offer insurance coverage against loss or theft. This is an added layer of protection for your gold holdings.
Want to sleep well at night? Then a gold IRA may be a great way to diversify your portfolio. A gold IRA allows you to own a physical, real asset in an extremely secure environment.
You will be hard-pressed to find an investment with the characteristics of a physical gold coin or bullion. So what are you waiting for?
Learn more about the potential benefits of a gold IRA today. Advantage Gold account executives are here to answer any questions you may have and guide you step by step through the account setup process.