Investing in precious metals has historically been associated with steady value, low risk and an excellent hedge against inflations; others value the negative correlation gold has to stocks and other financial instruments providing a true diversification. Many argue that gold should be an important part of a diversified portfolio because its price increases in response to events that cause the value of paper investments such as stock and bonds to decline. Although the price of gold can be volatile in the short term, it has historically maintained its value over the long term.
London Bullion Marketing Association (LBMA) recently conducted a survey revealing that 36 metal analysts are predicting that 2016 should see a partial recovery in gold, silver, platinum and palladium prices. Therefore based on the trends seen in January, they are predicting that precious metals will continue to rise in value throughout the year.
What is involved in precious metal investing with your IRA?
Self-directed IRA account holders have the benefit of holding precious metals in their IRA. Investing in metals is quite simple if you follow these easy steps:
- Research viable, reliable and competitive metal dealers and brokers.
- Submit a Precious Metals Investment Authorization and Direction form outlining the type of metal, quantity, broker and price. Submit digitally with E-Sign Authorization.
- Preferred Trust works directly with the metal broker/dealer to conduct the purchase on behalf of your IRA. Pay $50 transaction fee.
- Select a Depository and choose Segregated or Non-Segregated Storage Options. Metals held in an IRA cannot be physically held by you and must be maintained at a regulated depository. View our Resource page for Depositories Preferred Trust clients’ use.
- Revel in your newly found diversification.
If you are seeking diversification in your retirement accounts, you may want to consider looking into precious metals as an option for your self-directed IRA. Click here to view a list of IRS Approved Options.