There are few precious metals quite so tempting as gold, so the idea of investing in it and turning your retirement nest egg into gold is quite the tempting idea. But is it a good one? Adding a gold IRA sounds like a good deal, and in many ways, it is, but there are cons to be taken into consideration, not to pass judgement, but to bring awareness. So, if you are thinking about contacting gold IRA companies because you want to add one such IRA to your investment portfolio, here are the need-to-knows about what you’re getting into.
Besides the reputation this precious metal has, why invest in gold to begin with? Gold experts will tell you that it makes for a more diverse retirement portfolio. The main weakness of paper money investment is inflation, but gold is immune to the effects of inflation. As such, you have a bit of an added safety net by investing in a gold IRA, since it’s money in the proverbial bank that’s unaffected by the turbulence of inflation.
What are the risks?
While gold is immune to inflation, at least inflation can be tracked and predicted. Where the price of gold goes has little to no rhyme or reason to it. Over several years, the price of gold may skyrocket, or it may plummet like a stone dropped into Mariana’s trench. And if you invest in literal, physical gold, there’s of course the chance of it being stolen. Then that investment goes up in smoke, all that work for nothing. And of course, there’s a chance that the custodian you’re dealing with might commit fraud, and your investment amounts to nothing.
Certainly, it wouldn’t be so common if there weren’t. Besides the fallback option from inflation, t’s also a good way to measure your paper investments. If gold is down, that means that paper money is due for a climb. And there’s a degree of insurance to it all, as with everything else, there’s a chance that stocks will plummet so much that dollars or other investable currency will be worthless. But gold will always be worth something, never zero.
When it comes to gold IRA’s as a retirement investment plan, the best advice is to get a really good financial advisor to help you along with it. For recommendation, try Mountain West IRA. Their unique approach to IRA advisement has helped thousands across America.