Gold has been recognized as a precious and valuable thing since the dawn of time. Its flexibility, conductibility and durability make this metal precious. This metal is used principally as jewellery and as a form of currency. But in our modern world, we have observed that it is also used in some industrial applications such as dentistry and electronics.
The value of gold is determined by the market but it is less affected by the laws of supply and demand; it is because new mine supply is massively outweighed by the absolute scopes of above –ground, which is the hoarded gold. This would simply mean that when the hoarders want to sell the gold, the price drops and while they want to buy, there are new supplies hat are hastily absorbed and its prices are driven higher.
There are several factors why there is an increase desire of hoarding of this yellow metal. Below is just a few to mention:
- Inflation – this is the increase of prices in commodities, goods, services or wages. When rates of return in the bond, equity and real estate markets are undesirable, most investors flock to gold as an asset that will preserve its value. The impact of inflation is severe as of that in a market crash and will be more devastating in the long run and the effect could be disruption to stock and bond markets which may cause instability, weakening of income on interest-bearing securities, squeezing of the profit margin of particular type of stock and reduction of purchasing power.
- Universal financial concern – when political stability is questionable, banks and money are unstable, gold has time and again been perceived as a safe store of value. Gold served as a windbreak against inflation and erosion of currencies through the years. Although the price of gold can sometimes be volatile in a short time, but it has maintained its value over a long period of time.
- War or political crisis – the business world has always been harsh environment wherein there is competition and threats of losses. In ancient times, hoarding of gold is unavoidable because it is valuable to them when time comes for the need to trade for food, shelter or even safe passages.
Precious metals such as gold can offer unique inflationary protection because they have essential value, it cannot be inflated (can’t print more of it) and they bring no credit risk. This precious metal can provide an effective and useful means of expanding a portfolio. Its unpredictability can be harnessed to accumulate wealth but if left unchecked, it may lead to ruin.
Investing some of your assets in precious metals is very easy but selecting trustworthy, companies, custodians or trustee to rollover your existing assets is the hard thing to do. There are various gold companies that you can go to but trusting them is very difficult because you are investing what you have. Below is a list of different gold companies that are Gold IRA’s top rated:
- Regal Assets – it is one of the top rated gold companies that caters and specialises gold and silver rollovers. They have been making waves in the precious metal industry. Its major publications why they are competent, trustworthy and financially flourishing company includes: featured in Forbes Magazine in their 2013 special guide on investing precious metals, top 20 out of all companies that provide financial services in the Inc 500’s annual list of top companies and endorsements by different wealthy Americans and investors of precious metals within independent magazines. It also holds 5 star rating in TrustLink, they are rated A+ by BBB (Better Business Bureau), and 0 complaints in 2013- a rare scenario in financial services industry.
- Merit Gold and Silver – this company has been operating at least 22 years now. It is one of the only precious metals trading company that holds its original name and headquarter. Its customer support is impressive, the company also provides live feed to precious metal trading prices, its website allows everyone to purchase through their safe online trading platform. They also offer a unique feature that is called coin assessment wherein it will determine for you the value of a rare coin you have.
- Capital Gold – the company has been operating over 10 years now and helping wide-ranged of stakeholders to secure long-term precious metal investment opportunities. They offer IRA plan perfect for people who wants to invest in precious metal industry. Customer service is 24/7 and rated A+ by BBB.
- Morgan Gold – the company has been operating since 1963 and one of the leading companies in the precious metal industry. They allow investors to purchase a wide-range of products including 401k/IRA plans. They offer products such as gold coins, silver coins, modern gold and silver bullion, palladium, platinum and European Gold coins.
These are few top rated gold companies that you can trust in investing your IRA.
Goldline International, Inc is one of the oldest and leading companies in the United States that offers a large range of precious metal products. The company has delivered internationally recognized gold, silver and platinum bars and coins as well as rare and collectible items in the early 1960’s. The company offers both direct insured delivery and secured storage of all precious metals. They are accredited by the BBB and were recently ranked 32nd largest private company headquartered in Los Angeles County. They specialize in gold, silver and other precious metal coins for collectors and investors as well as investment of gold, silver and rare coins.
The company was the largest storefront gold retailer but went into bankruptcy in the 80’s because of allegations from the President’s Commission on Organized Crime of laundering money for drug traffickers, bribery scandals and smuggling currency from the Philippines. The company went various changes in owners until such time that it fully recovered from its dilemma.
They were ranked number 6th as the fastest growing company in the Los Angeles County, California in the statement of Los Angeles Business Journal in 2009. The company advertises through various channels such as the Internet, television and radio. They also sell over the phone, via internet and in person to clients. They also call past clients if there are new items or collectibles. Purchasing the product can be made through check, credit card, wire-transfer or cash.
The Goldline International, Inc is an opened company that conducts honest and direct dialogue to its participants in the community; with any other organizations and individuals, municipal and state authorities. Thus, the company is ready to publicly report its activities carried out and provide information according to the law and international regulations of the company. Also the company has full compliance with civil, criminal and tax legation to the countries where the company conducts its activities to its clients and partners.
Most people have misunderstood gold bullion and ordinary individual does not understand what gold bullion is. We often consider gold bullion as a gold bar or any form of rectangular precious metal bars. To some extent, the misperception that gold coins are limited in supply, expensive and just a collector’s item. Bullion denotes to precious metals in bulk form and its value is determined by its metal content, and defined by its purity and mass.
Historically, most currency was in the form of bullion coins including silver and gold. These precious metals are common for its trading and politics. These coins are minted by official agencies for investment purposes in unlimited numbers but nowadays, modern bullion coins do not enter public circulation. Gold bullion is a standard fineness and weight of gold that you can acquire for the existing price and plus its small fraction cost for refining, fabricating and shipment. Categorically, bullion would simply mean, a polished and stamped weight of precious metal.
These precious metals can be beneficial and non-beneficial. Purchasing gold for investment differs a lot by just simply collecting it. That is why collecting and investing with these precious metals should be considered. Below are reasons why and why not to own a gold coin bullion.
Investors may want to have these metals because:
- Satisfaction of owning and possessing it.
- Possible price appreciation from new high levels.
- Ease of purchasing and selling the coins.
- Capability to test gold content of the coins.
Investors should not own these metals because:
- Larger liquidation spreads.
- Challenge to verify old and rare gold coins.
- Hassle and cost of storing and insuring gold coins.
- Premium charges and prices assessed by the dealers.
- Uncertainty of price appreciation.
Investing in these bullion coins is a big decision that is why you should investigate before you invest, especially since there are scams that often involve in false claim about its rarity, content and value.
Many investors or IRA holders suffer loss of financial assets because of investing to risky financial assets. When turmoil arises, many investors are affected and unfortunately most of them will lose everything. Investing to gold IRA is a good choice because generally speaking, gold is less affected by any turmoil in the world market since it does not involve in the supply and demand unlike stocks, food and commodities.
However, many of us don’t understand what gold IRA rollover is. It means that you have to switch your bonds or cash from your existing IRA to a different product that allows you to purchase precious metal such as gold. This process is not really an effort; all you have to do is get or choose the right custodian and decide where you are going to purchase your gold from.
Many are confused about IRA transfer and rollover. When we say transfer, the money will be transferred directly between the two custodians wherein you never physically get the product. However in the rollover process, you are paid the amount that you want to move into the gold IRA and after that, you need to give it to the custodian to buy gold in your name. Furthermore, you are given 60 days to deposit your money the moment you receive it, and if you fail to do so within the given time frame, the money you withdraw will be considered a taxable withdrawal.
You should be aware that a direct 401k is not possible to a gold rollover. You should open a self-direct IRA and redirect part of your assets towards purchasing precious metal for your new IRA. A person can have multiple IRA’s and the main reason why you should need to have self-directed one is simple; it permits you to select what your money will be invested for.
Investing your hard-earned money to a certain company can sometimes be a difficult process. You should be able to scout an excellent Gold IRA company to manage your account because in the first place, they will be the one to buy gold that the IRS approves, set-up a self-directed IRA and keep the gold somewhere safe. In addition, some custodians can help you turn your existing IRA to gold IRA without receiving any tax penalties.
Finding the right company to manage your account must possess some qualities such as integrity, honesty and excellent track record. In this manner, you will feel secure and safe whenever crisis will arise.
Investing in gold is valued universally and has been perceived as a commodity for thousands of years. Most of the people desire gold but unfortunately, many of them do not know how to invest in the market. Investment is done for the purpose of avoiding any crunch which might arise due to economic, socio and political depression.
Before investing in gold, you should be able to know how all prices work. Prices fluctuate frequently; therefore, you need to authenticate spot pricing before making any deals. Also, you need to understand that some types of gold are much higher in value than the other.
Below are tips on how to invest on gold:
- Purchasing gold coins – these coins are often bought with prices determined by its weight and color since it is the most popular option to invest with. Trading can be done in some banks around the world.
- Purchasing gold bars – this option is the traditional one and buying them is done over the counter in some banks. Investing in gold bars also takes place amongst precious metal dealers. Trading of these products have become less popular because there are issues like storage, transportation or shipment and verification requirements that are needed to allow the transaction to be made.
- Creating a gold account – many banks will allow individuals and investors to create and register gold account with them. This type of account is well-sheltered through apportioned storage option.
- Getting a gold certificate – this option is much needed to many investors because there is no need to handle gold in physical form. With the certificate in hand, trading can be done without having to matters relating in handling the product and other requirements to be done if you bring it physically in the form of a gold.
- Investment in gold via stock market such as GETF, NYSE, LSE and other market that will provide a learning platform for investors and individuals to gain more knowledge on the value of gold without having to deal with storage concerns. Yearly payment for storage and commission is mandatory and the charges executed based on how much gold has been traded under the contract.
- Investment in gold by creating CFD (contract for difference) – this type of contract is beneficial to both parties where seller and buyer enter a contract. The seller is mandated to make payment to the purchaser and the amount is deliberated based on the current value and the actual value during the time of contract.
Gold investment is a good choice in investing your IRA.
Many financial experts have recommended holders of IRA to turn to gold for security but individuals are left guessing where and how to convert 401k or IRA to gold. A 401k plan is a kind of savings that will help you place your money aside for retirement. It will allow you to give way some of your hard-earned money in a tax-sheltered account. This type of tax shelter generally invests in mutual funds but it may also invest in different types of financial products. However, some employers do limit investment options as a matter of practice. But if you want to invest it into gold bullion, you need to know some important tips that will help you in the process:
- Use the right custodian – in order to get into gold IRA investing, you need to have a self-directed IRA custodian. This would simply mean that a financial establishment or institution is needed for overseeing your IRA activity. It will be necessary that your custodian is active so your IRA will flow smoothly because your custodian will provide for you advice and products pertaining to your IRA.
- Rollover or transfer your 401k account – you can transfer your 401k account with brokerage that deals access to precious metal products. This will avoid you to some major tax penalties. Generally speaking, the rules involves that your gold IRA be funded with cash. Investing of the products, you have the option of what kind of gold investment you want although most investors buy gold mining stocks that means you are placing your finances and faith in gold mining companies that operates in mining activities.
- Invest in gold bullion – the rates for gold bullion vary and the spot value fluctuates daily but if you have an IRA with its option to acquire gold, you will be capable of doing with no existing income or capital gains taxes due; if it is inside of your IRA. However, if it is not inside of the IRA, you will be held responsible for taxes on any gains from the sale of gold or any products.
Start the transition to gold IRA as early as you can with a reputable gold IRA company. With gold being as steady as it is, it is the greatest financial investment choice for building and maintaining your retirement investment.