Advisors have been very interested in understanding the fundamental case for owning gold.
The question being asked more and more is, not, should one make an investment in gold but, how much should one invest in gold?
The answer really depends upon time horizon as well as investment objectives.
Nevertheless a gold investment account is a subject you should be seriously thinking about.
The case for owning gold is a simple supply and demand story which has always been that way, and what has changed over the last several months is that there is clearly a supply situation where it may be constrained.
From a demand perspective around the world including the United States there is certainly an increase demand for physical gold as well as jewellery.
Is there a case for adding gold to your retirement account?
Gold Retirement Account
An IRA can legally own real estate and several other alternative investments too, ranging from private equity and promissory notes to gold, oil and gas and cattle. It cannot own insurance, collectibles or stock in S corporations.
Larger financial institutions that act as custodians for most IRAs generally limit investments to publicly traded stock, bonds, mutual funds and bank CDs.
As more risk assets are added to the portfolio, as more equity is added to the portfolio, in order to create a certain amount of ballast , it is important to be able to counter some of those risk assets, with assets that are going to be more diversification oriented, and more hedge oriented.
If you own gold and you owned it because you wanted to hedge the portfolio, those in the know would say now is not the time to sell it, and if you don’t own gold and you’re looking to try to find a hedge as you build and construct your retirement portfolio, gold is certainly worthy of taking note of.
If you have a sizeable retirement account invested mostly in publicly traded stock, bonds, mutual funds and bank CDs, it is well worth your time to give serious attention to re-balancing some portion of your retirement account into a gold retirement account.
If the investment company you deal with does not offer self directed IRA’s you will first need to move your IRA to typically smaller custodians offering “self-directed IRAs.
This is where expert professional advice is your best friend to ensure your retirement account remains in it’s tax-deferred wrapper until you need to make withdrawals.