Gold Investing: Is a Precious Metals IRA a Wise Investment?

Gold Investing Precious Metals IRA Dollar Sign Question Marks

Investment professionals agree that between 5% and 10% of our retirement portfolios should involve precious metals such as gold investing. In fact, the American Precious Metals Exchange recommends even more than that, suggesting that up to 30% of one’s portfolio be invested in a precious metals IRA, such as with gold investing, during strong economic climates.

Because a self directed IRA account enables you to fully control the types of investments that you decide to make, you may choose to invest in a wide variety of precious metals, provided that it is approved by the IRS.  However, if you choose to invest $100,000 or more in metals such as gold or silver, financial analysts will suggest that you diversify your metal investments.  Precious Metals IRA approved such as platinum, gold, palladium, and silver are your best bets when investing larger amounts of money. On the other side of the spectrum, those who choose to invest on a smaller scale of $5,000 or below, it is considered wise to concentrate on just one metal for your investment.  However, no two portfolios are exactly the same; therefore, it is always a good idea to seek advice from your favorite financial expert before deciding on where you’d like to invest.

The value of gold has had its ups and downs throughout the modern era; over the span of this century’s first 10 years, the value of gold increased nearly 6 times its original value in 2000 and became one of the highest performing commodities on the market. The drastic increase in gold’s value attracted many interested in gold investing who bought it at its highest value.  After this sharp rise in value around 2011, gold plummeted to -36% from its highest value and created loss for those who invested at its highest point. Unfortunately, gold’s story is not a unique one. This happens often in the investment world, even with gold investing.

A typical investor should diversify their portfolio with a variety of assets; unfortunately, many investors choose to buy these commodities when they are highest in value, hoping to see the numbers climb even higher. The bottom line is that regardless of where you choose to invest, it is always best to do so with good strategy in place to insure the best results for your time and money, as is the case with gold investing.

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