Because diversification of funds is one of the best options to consider in order to have a strong and secured portfolio, the 1997 Tax Payers Relief Act approved certain precious metals, like silver, gold, and platinum, to be invested to Individual Retirement Account or IRA. An IRA is a type of retirement savings fund that allows a person to make contributions as long as he is still earning taxable income like wages, salaries, and commissions during the year. This person, or investor, can make withdrawals from his investment in accordance to the rules and regulations that govern the type of IRA plan that he chose. Investing in gold IRA is a good way to achieve diversification of funds, and because the price of gold increases during the stock market’s weak period, this type of IRA investment will even out the investor’s portfolio during crisis.
It is easy to put gold into IRA. If you already have an existing IRA, it is best to ask your provider whether you current account allows gold to be added into it. In case this is not allowed, then you can simply open a new gold IRA.
First you need to decide which type of IRA plan you want to invest your gold into. Gold investments are accepted to both the traditional and Roth IRAs, so you just have to assess yourself and choose which plan best suits your retirement needs. It is also recommended to know who are the best IRA providers for gold IRAs, and choose the one whom you feel would give you the best profits. Choose a custodian that is experienced in dealing with gold investments, then submit the necessary documents needed in opening the account. Because gold must be stored at an approved depository, a storage fee which is lesser than 1% of the total gold assets will be collected.
Transfer money from your current IRA to fund your gold account. This may be done as a rollover or as a new contribution. Then instruct your custodian to make the purchase of gold coins or bullion or gold mining stock for you.