Diversifying your portfolio is always a good idea. Savvy investors know that understanding the old adage about keeping all your eggs in one basket is essential to protecting yourself against the volatility of market forces. If you put every bit of your money into a single asset or stock, you are more likely to lose everything.
Having a diverse portfolio means having more chances to win and more protection when you lose; there is literally no downside to it.
Increasingly, smart players are putting their money into markets that represent strong commodities that are in high demand, commodities that can act as natural bulwarks against market volatility, and negative forces like inflation and recession.
Why Choose Precious Metals Market?
For those looking to get in on the fun, there are many competitive options to choose from, and all of them are great choices. One of the more increasingly popular choices out there is the precious metals market, where customers can put some of their cash into gold, silver, platinum, and palladium.
There are many reasons why the precious metals market is a smart choice. While other precious resource commodities, like water or helium, are always going to be valuable and will always have a level of security when compared to more traditional stocks, no other choice has the versatility of precious metals.
They hit the sweet spot of being in high demand for multiple fields, being generally secure against market forces, and having a wide array of ways to enter the market. Precious metals, especially gold and silver, have proven time and again to be a generally safe investment.
In fact, the worse the general economy is doing, the better those stocks seem to do! Having some holdings in those commodities is a great idea, and there are no shortages of ways to actually make those holdings happen.
Unlike other commodities, one of the ways you can grab them is through your IRA. You can designate part of your retirement savings to go to gold holdings. Navigating this process can be Kafkaesque if you do not know what you are doing. Fortunately, you can count on this gold IRA investment guide to help get you started.
There are a few things you need to know going into it, and we are here to clue you in on those quirks. When finding the right gold IRA company for you, there are two considerations that will make or break what is best for you: fees and options.
Wait, Did You Say Fees?
We did! Unfortunately, there are always going to be fees associated with keeping any physical product, be it a precious metal or anything else. There are two kinds of fee you are going to have to account for: administration fees and minimum investments, both of which we will go over here. While it may be understandable to feel turned off by these financial barriers, they are a necessary evil – at least, the administration fees are.
The fact of the matter is that any physical good will need to actually be kept, and that includes both storage and maintenance. The company providing those services needs to be compensated for their labor – and make no mistake, there is labor involved.
Storing metals requires special considerations, including specific storage conditions and security measures. When shopping around for administration fees, aim for something less than $200 annually. Other fees can be found at U.S. Customs and Border Protection, though chances are import fees will not be applicable to what you need.
Unfortunately, minimum investments are a much more insidious beast, one that you do have some measure of control over. The true evil of minimums is that they have the potential to lock buyers out of the market entirely, as some of the minimums are absolutely absurd. They can reach upwards of $50,000 or higher!
These requirements vary from agency to agency with no industry standard to guide them. This will likely be the greatest barrier to entry that you find, though there are agencies with lower minimums. That said, our experience shows that anything less than $10,000 – still steep! – is a riskier company to hitch your financial wagon to.
Be careful not to invest beyond your means and try not to get suckered into an agency with higher minimums if you cannot afford to do so safely.
Let us Talk About the Fun Part!
Chances are high that you have already looked at your options as far as what to actually invest in, and who can blame you? Between the coins, the bullions, and the other ways gold and silver can be made, there is an electric thrill that comes with picking out your assets.
The coins alone come in so many different styles that the mind boggles at the choices! When this writer first started investing in gold coins, it was like being a kid in a candy shop. It took me right back to my days collecting Pokémon cards, albeit more expensive and practical this time around.
This website has an excellent breakdown of several popular types of coins to peruse. Ultimately, there is no wrong way to invest in precious metals, especially via IRA. The absurd range of options available to you are all excellent choices and can be reliably guided by personal taste and preference.
When all is said and done, so long as you are smart about how and where you put your money, your experience will be an extremely pleasant one!
- Review Benefits Of Investing In Gold IRA W/ Lear Capital & Other Dealers
- 4 Top Reasons To Consider Gold Investment
- Is Gold a Worthy Investment in Today’s Economy?
Author: Rowena Oliver