Buying gold in a Gold IRA: Sure, you can. But why would you?

How about this for a reason:

In 2001 an ounce of gold cost $271. Ten years later it hit $1896, do the math that’s an increase of almost 700%. This period was also, by the way, one of the most stormy economic periods in recent history: banks collapsed and currencies trembled. While these calamities devastated other areas of the market, gold prospered. As strong winds blew in on subprime mortgages, credit default swaps and other derivatives that even experts don’t understand, gold shone through it all. Google “gold” and you’ll find many comments on gold’s reputation as the standard of wealth, the original money, and a safe haven from economic turmoil.

Gold has been a storehouse of wealth for kings and empires for thousands of years. Gold and silver will protect your purchasing power; Unlike money, gold and silver cannot be printed or degraded. It is nature’s true hard asset.

Should I cash out my IRA and buy gold?

If you’re looking for security and stability in your retirement portfolio, the answer is yes.

In a gold IRA, Roth IRA, or self-directed 401(k), you can buy gold or silver coins or bullion. Retirement plans typically offer traditional IRAs or 401(k)s that contain stocks, mutual funds, annuities, or other assets. Most of the time, investors have little or no say in the investments that are made. With a self-directed plan, the owner is empowered to make their own investment decisions and, if they so choose, to add to the available investment options. Precious metals may be among those options.

The investor begins by rolling over their traditional IRA. Current law allows both IRA transfers and rollovers from other qualified retirement plans.

How to Buy Physical Gold and Silver in an IRA

Investing in gold or silver in an IRA can be as simple as rolling over your account as you would with any paper investment. The transaction is fast and its characteristics make precious metals a perfect investment. In fact, using a self-directed gold IRA purchase is one of the most tax-efficient ways to finance your gold/silver purchase.

Gold or silver?

We have talked about the virtues of gold, what about silver?

Silver is used in a growing number of industrial applications that will only increase with the development of new technologies: smartphones, tablets, televisions, and solar cells are in high demand for silver use. Even more so than gold, the quantities of silver available are limited and unless you think the demand for high-tech is slowing down, there can only be one way for silver prices to rise.

From 2008 to 2010, silver enjoyed an upward trend of $16 per troy ounce and soared to a high of $48.70, an increase of over 300%! Historical records over the last 15 years show that silver has always held a reasonably strong position in the market because traders know that precious metals are a safe haven because some of them can be used as legal tender.

Coins or bars?

Bullion is easily stored and transported, as you can stack bars that were produced by the same mint. Bullion also commands the lowest premium over the spot price for both gold and silver. On the other hand, unlike coins, generic bars produced by normal mints do not offer any kind of “collectability” factor. Also, larger bars (10 oz gold bars or 100 oz silver bars) can be more difficult to trade in a crisis than smaller bars.

For their part, coins offer a collectability factor that bars and rounds do not. In a pinch, coins, such as Silver Eagles or American Gold Buffalos, can also be considered legal tender (although it would be foolish to spend coins as legal tender, since they are worth much more as metal).

Again, your choice depends on your individual financial goals and circumstances.

Start protecting your wealth today

To learn more about investing in gold and silver and how these precious metals can help you grow your wealth even in the most uncertain economic times, download our FREE mini-course “How to Invest Your IRA in Gold and Get Rid of Financial Worries for Good.” ” This powerful course could save you thousands of dollars and is packed with the tips and expert advice you need to make the best possible decisions for you.

With the current economic uncertainty, adding gold or silver to your portfolio could be your best diversification strategy, serving as a potential hedge against inflation and a falling dollar. Protect yourself today.