Blog

  • How to Secure Your Retirement with Gold

    With the economy in constant turmoil and advisers everywhere recommending precious metal investments as a way to protect assets, it isn’t surprising that many people are considering the advantages of using gold to secure their retirement. Not only are more people struggling in retirement than ever before, but many analysts believe that America could be in for the worse retirement crisis ever.

    Invest in Gold with Your 401k or IRA Funds

    One way to begin securing your retirement with gold is to invest some of the funds in your 401k or IRA account. Since the funds in these accounts are held in dollars, the decline of the dollar directly affects the value of your retirement savings. By converting a portion of the account to gold you protect those assets from depreciation and ensure that a minimum amount is safeguarded from inflation and economic collapse. You can deposit American Gold Eagle coins directly into your IRA or use the funds in the account to buy them online. These coins will not decline in value like the dollar and are therefore a safe option for securing your retirement with gold.

    Devote a Portion of Your Annual Salary to Gold Investments

    Another way to secure your retirement with gold is to devote a percentage of your annual salary towards gold investments on a quarterly basis. Experts recommend committing 5% – 25% of your yearly investment budget to gold investments, depending on your individual needs. If your goal is to earn as much profit as possible for your retirement, it would be best to keep your gold holdings below 10% of your investment capabilities, as this will give you the liquidity needed to trade with more flexibility. Keep in mind that there are a number of ways to invest in gold. Diversification is the key to building a strong risk-mitigated portfolio that will stand the test of economic trials.

    Use Gold ETFs to Gain Insight and Increase Flexibility

    You can compliment both of the above strategies by investing a gold exchange-traded fund (ETF) in order to track the price of gold and increase your trading flexibility. With an ETF you don’t actually have physical possession of your gold holdings, as they are stored by the fund. Instead, your holdings are represented by stock units that can be traded on the stock exchange during market hours. Although you can’t exchange an ETF for physical bullion, you can trade it for cash whenever you’d like.

  • Tips to Invest in Gold Coins

    Buying gold bullion (bars, ingots, and coins) is the safest and easiest way to invest in gold. However, not all gold coins are the same, and there are some facts that should be considered before entering into this field of investing. In the following paragraphs we’ll discuss some of the most influential factors that will determine what type of return you’ll be able achieve through your gold coin investments:

    What Coins Should You Buy?

    For most people the best gold coins to buy are those minted by official government mints within North America, such as the American Eagle, the American Buffalo, and the Canadian Maple Leaf.  These government-backed coins are very easy to liquidate when you need cash because they are practically ubiquitous and are trusted by dealers everywhere. American Eagle coins can even be deposited into Individual Retirement Accounts (IRAs). Although the 2006-released American Buffalo is the purest coin ever offered by the U.S. Mint, it is not as common as the American Eagle, and of course its purity gives it a higher price tag. If you live in South Africa a good choice would be the Krugerrand, and if you live in Austria a good choice would be the Vienna Philharmonic.

    Comparing Dealer Prices

    Since the U.S. Mint does not sell their coins directly to the public, you’ll need to find a reputable dealer to buy from. Fortunately, you can use the U.S. Mint’s official bullion retailer list to drastically simplify the prospecting and comparison process. Dealers sell their gold coins at a set premium above the current spot price, which can be found on gold price tracking sites like Kitco.com. As a rule of thumb, you never want to buy coins that are sold at a premium higher than 5% of the spot price. Obviously, the goal is to be persistent in order to find the dealer with lowest premiums on the coin you’re shopping for. It should also be noted that one ounce coins carry lower premiums than one-tenth ounce, quarter ounce, and half ounce coins, and are therefore the cheapest by volume.

    Avoid Rare Collector’s Coins

    Collector’s coins typically have more of a mark-up than officially minted gold coins. In addition, rare coins are not as easily appraised, and many brokers and dealers are hesitant to buy them, so you would have a hard time turning them into cash. While some rare coins will appreciate in value and may wind up being worth a lot more in the future (especially those that are government-backed and are considered legal tender) there is no guarantee that this value appreciation will occur, and if it doesn’t you’ll earn less of a profit than if you invested in of the aforementioned U.S. Mint or Royal Canadian Mint coins.

Visit Us On TwitterVisit Us On Facebook