The IRS has certain rules and regulations about Individual Retirement Accounts for people who use their retirement funds to buy precious metals. You have many different types of IRA plans available to you, so you must know what you are getting before making any commitment. We’ll explore some of the pros and cons of each metal type as well as other factors that should be taken into consideration!
Gold IRA
The Gold IRA consists of raw gold, typically in the form of gold bars. This type of IRA has a custodian from who you would buy your gold and who will hold it for you until you are ready to sell it and take possession. The way a Gold IRA is beneficial is because the price of gold historically goes up over time so even if the economy is in a slump, your investment will still increase. You can look at some of the best companies for gold IRA at this URL to get a better understanding of where you can invest. Also, you will have a lower risk in a Gold IRA because there are no storage fees and it is more liquid than other precious metals. You can take possession of your gold at any time without penalty. However, you must have full custody of the gold when across state lines, or else you will be subject to large penalties.
Silver IRA
The Silver IRA consists of raw silver, typically in the form of silver bars. This type of IRA has the same benefits as the Gold IRA however it does not hold quite as much value due to its lower price per ounce at this time. However, silver is a very common metal that most people have heard of and if you invest in this metal then your investment is guaranteed due to being backed by the US Treasury! It also has low storage fees and is more liquid than other metals.
Gold & Silver Mixing Metals IRA
This type of IRA consists of both gold and silver depending on market prices for each type at the time. This is a good solution for someone who does not have enough money for a full Gold or Silver IRA but wants to diversify their portfolio. This type of IRA is the most liquid because you can take possession of either metal at any time without penalty, however, keep in mind that if you take possession of both metals then your custodian may charge storage fees.
Platinum IRA
This type of IRA consists of raw platinum and works very similarly to the other precious metals IRAs. It holds its value well over time, has low storage fees and it is fairly easy to liquidate your investment. Platinum is also not as common which makes investing in this metal fairly unique! However, there are fewer companies that deal with Platinum, so do your research first before investing in this metal. Also, it is best to use a Platinum IRA custodian with experience dealing in this metal.
Zirconium, Molybdenum and Tungsten IRAs
This last type of IRA consists of the less commonly known metals Zircons (zirconium), Molybdenum, and Tungsten. Each one has its perks over the other metals listed above. Zircons are easy to liquidate and they perform well in both bad economies and good ones due to their low price – however, they do not hold as much value as other metals. Molybdenum performs well during bad economies because it holds its value better than many other metals – however, it does not perform quite well during good economies because there is a lot of supply. Tungsten is the least valuable metal on this list and has high storage fees – however, it also has low liquidity resistance which means you can take possession of your metals at any time without being penalized!
There are many different types of precious metals IRA plans that have their pros and cons. It is important to do your research before committing to a certain type, as well as for deciding how much money you want to invest in this plan and what company you would like to use for your custodian! The most important thing to remember is that before buying any precious metal through an IRA, it must first be stored by a qualified custodian who will then hold it or deal with the metal on your behalf.
There are some companies online that allow you to sell and store metal within your account but make sure they meet IRS guidelines first! Think about all the factors involved when making this decision and always consult with your financial advisor before making any decisions!