Financial planners often mention the importance of diversifying your portfolio. But did you know it’s possible to hold physical gold—like certain proof and bullion coins—in your Individual Retirement Account (IRA)? It’s one way to diversify your financial portfolio with a tangible asset.
Why add gold to your IRA? Well, there are various reasons to consider adding gold to your IRA. Many investors view gold as a potential hedge against inflation and a declining dollar. Unlike stocks, bonds and other paper investments, gold is a physical asset with intrinsic value. As opposed to fiat currencies and government debt, there is a finite supply of gold.Over the past decade gold prices have risen over 300% and have attracted a number of gold investors. While past performance cannot guarantee future results, there are a number of analysts who believe today’s unsettled economy could contribute to higher gold prices.
WHAT COINS CAN BE HELD IN AN IRA
In addition to gold bars which meet certain requirements, the United States currently allows certain bullion and proof coins such as gold and silver American Eagles to be held in IRAs.* Gold proof coins are special collector versions of the mass-produced bullion coins.
Proof coins undergo a specialized minting process that uses select dies. Lustrous coin blanks are fed manually into the presses where they are struck multiple times to ensure softly frosted, detailed coin images raised above a mirror-like background. Mint inspectors review each coin before deeming it a proof and place it in a protective plastic case. Proof American Eagles come in satin-lined velvet presentation cases with official U.S. Mint Certificates of Authenticity.
Proof coins typically have a limited mintage and their prices are determined by multiple factors including: mintage, rarity, condition, age, the price of the particular metal and demand for gold and other precious metals. The United States government issues a limited number of gold and precious metal proof coins each year. Due to their numismatic significance, proof coins typically carry a premium over their metal content—be it gold, silver or other precious metal.
Bullion coins can be thought of as common coins. Their values are dependent upon and tied closely to the spot price of the precious metal.
Goldline International is one company that can help you add gold to your IRA and assist you throughout the process. Once you have made the decision to add precious metals to your IRA, you will choose an IRA custodian. After the IRA custodian receives the necessary paperwork and funds, you decide which precious metals to include in your IRA. When the time comes for you to take distributions from your IRA, Goldline can assist you in converting your precious metals to cash should you so choose.
*Federal IRA tax laws are complex and may change from year to year. As with any investment, you should consult your tax advisor before making a decision regarding gold IRA investments.
You should review Goldline’s Account and Storage Agreement along with its risk disclosure booklet, Coin Facts for Investors and Collectors to Consider, prior to making your purchase. You may request copies by calling 1-877-376-2646 or review them online at www.goldline.com. All in vestments involve risk – coins, currency and bullion are no exception. Precious metals prices may rise or fall over time. Past performance does not guarantee future results. Goldline recommends that precious metals and rare coins be held for a minimum of 3-5 years.