Gold IRA: Buying Gold through Your Retirement Account

Opening a gold IRA can provide you with a good way to plan for your retirement. Investing in gold has always been a popular investment. With access to a tax-advantaged retirement accounts such as an IRA, implementing gold into your investment strategy can make a lot of sense as an investor. Here are a few things to consider about buying gold through your retirement account.

IRA Rules

According to the IRS, you can invest in many different things with your individual retirement account. The only things that are prohibited are collectibles, life insurance and any business dealings that would help you personally.

Even though you are technically eligible to invest in gold through your IRA, this does not necessarily mean that you will be able to in your particular account. Some IRA custodians do not offer gold as one of their investment choices. Because of this, you may need to locate a broker that offers gold.

Opening an Account

Once you have located a broker that offers gold, you will need to complete basic paperwork and provide them with identification. Then, you are going to need to provide payment to the broker in order to fund it. After your account is open and funded, you should be able to start buying gold.

Buying Gold

In order to buy gold, you need to purchase it from a gold company. The gold companies will allow you to transfer money from your IRA into a gold account. You will then be able to buy a certain amount of gold, depending on how much money you have to invest. The company will provide you with a certificate that specifies the amount of gold you own and purchased. The gold company will also warehouse the gold for you in a secure location. You can then hold onto the shares of gold as long as you want. You will be able to trade them or sell them, depending on your investment needs.

Mutual Funds

In addition to investing directly in gold, you can also purchase shares of gold mutual funds. These mutual funds provide a large portfolio of gold related investments for you to buy into. Some mutual fund companies will warehouse the physical gold for their investors or they might invest in stocks of gold mining companies. Investing in stocks allows you to speculate on the price of gold, without actually physically owning it yourself.

Futures

Another option that you have in order to buy gold for your retirement account is to get involved with futures contracts. Futures contracts can typically be purchased through your IRA account. These contracts are basically a promise to buy a certain amount of gold in the future. You can buy and sell these contracts, depending on the market conditions. Futures contracts can be tricky, so be sure to work with a reputable broker for the purchase of these contracts.

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