Gold Retirement account

Is Gold a good Investment for retirement?

Investors become interested in Gold for a number of different reasons. Right now the primary concerns are Inflation and some kind of Global Economic Reset that appears to be imminent.

Conservative Investors are looking at their retirement savings and realizing that they are backed by nothing but paper assets (Stocks, Bonds, Mutual funds) in bubble-inflated markets. With Inflation raging and the economy tilting towards recession, both Stocks and Bonds are losing value making it painful to even look at the monthly statements for Retirement accounts.

Because the traditional Wall Street strategies aren't working anymore, investors are wondering, "Is Gold a good Investment for retirement?"

If you ask most Financial planners that question, they will say, "No", and then go on about "volatility" and "risk" and probably throw in a story about how their aunt Suzy lost her retirement savings by investing in Gold or Silver.

Before we accept their answer at face value, however, we have to consider two things:

Most Financial planners are still wet behind the ears

They have never lived through a serious market downturn, much less had any experience with an extended period of Inflation and Stagflation like the 1970s. All of their experience is based on markets where central banks were blowing a series of bubbles and the "buy the dip" strategy worked fairly well.

Anyone who earns money by selling financial products or advice has a bias

Unless you are dealing with a fee-only Investment advisor, the financial advice you are receiving is almost certainly biased towards the traditional Wall Street products: Stocks, Bonds, and Mutual funds. If you take your money and put it into Gold, the denizens of Wall Street lose their source of income. They want to sell you the latest paper Investments and help you rebalance your Portfolio every year because that is how they get paid - suggesting Gold is the last thing they are going to do.

Here at Satori Traders we openly acknowledge our bias. We believe Gold is the only real money on planet Earth and we encourage everyone to protect their hard-earned money by investing in Precious metals.

With the current state of the World, both economically and geopolitically, we feel it is crucial to have at least some of your Wealth stored in physical Gold and Silver.

In this article we will share some of the different ways you can add Gold to your retirement savings.

Gold IRA vs physical Gold

The first point to understand is the difference between owning physical Gold and having exposure to the price of Gold.

If you want the ultimate in security for your Wealth, you need to own physical Gold and have it in your possession. Gold has acted as a store of value for at least 2,600 years and that is why central bankers today still stockpile the yellow metal (despite all of their rhetoric about Gold being a 'barbarous relic').

If you think the price of Gold is going to rise and you just want to speculate on that possibility, then all you need is exposure to Gold's price. You can do that with any of the Gold-backed Trusts or ETFs, or with an Investment in mining stocks.

In this article we are going to focus primarily on how to own physical Precious metals.

Ideal Precious metals Portfolio

The ideal Precious metals Portfolio starts with physical Gold and Silver in your possession. You buy this metal with money outside of your Retirement accounts and store it in a home safe, bury it in the garden, or place it in a local vaulting facility if you have access to one.

On top of this readily accessible foundation, you have two options for adding physical metal to your Portfolio.

1. Purchase metal with non-tax-advantaged money and have it stored in a well-known Depository like the state-administered Texas Bullion Depository. When you purchase Precious metals from a reputable dealer they will ship your bars and Coins wherever you like, and the Depository will receive the metal and place it in segregated storage for you.

2. You can move funds from your tax-advantaged Retirement accounts into a self-directed IRA where you are allowed to hold physical Precious metals. This is how you can protect your retirement savings from Inflation, market volatility, Global Economic Reset, etc.

The final, and smallest, part of the ideal Precious metals Portfolio consists of speculative positions that will benefit if the price of Gold rises. This segment of the Portfolio is small because of the risk involved with securities in general and the heightened risk of Precious metals securities like Mining stocks. Unless you have specialized knowledge, stick with these relatively conservative Gold-related securities:

Sprott Physical Gold Trust (NYSE: PHYS)
Royalty companies like Wheaton Precious Metals (NYSE: WPM) and Royal Gold (NYSE: RGLD)
Dividend paying miners like Barrick Gold (NYSE: GOLD), Newmont (NYSE: NEM), Agnico Eagle Mines (NYSE: AEM), and Wheaton Precious Metals (NYSE: WPM)
Large-cap miners like Newmont (NYSE: NEM), Barrick Gold (NYSE: GOLD), and Agnico Eagle Mines (NYSE: AEM)

When you compare a Gold IRA vs physical Gold, you are really talking about the difference between number one and number two above - i.e., what kind of money are you using to buy your physical Gold.

Gold Retirement account - presentation

Gold IRA pros and cons

Like all Investments, there are pluses and minuses to a Gold IRA.

The ideal way to invest in Precious metals is to use money outside your Retirement accounts and take personal possession of physical metal.

Although it is not ideal, a Gold IRA is the only way to protect your tax-advantaged retirement savings with Silver and Gold.

Pros

The only way to purchase and hold physical Precious metals using tax-advantaged money.
Diversifies a Portfolio of Stocks, Bonds, and Mutual funds with an alternative Investment asset.
Provides a hedge against Inflation.
Distributions from the IRA can be taken as cash or metal.
Capital gains are taxed as regular income, not the 28% tax rate for Collectibles.

Cons

Pre-owned metal cannot be moved into the IRA. All metal must be purchased inside the account.
The IRS requires that IRA assets are stored with a third-party Custodian.
There are fees for buying and selling Precious metals.
There are fees for storing and insuring Precious metals.

IRA approved Gold

The IRS has requirements for the types of Precious metals products that can be held in an IRA.

In general, IRA approved Gold bars and Coins must be 99.5% pure (Bullion quality) or better, although an exception is made for American Gold Eagle Coins which are only 91.67% pure.

The IRS also restricts the acceptable refineries and mints where IRA Gold products can be manufactured. This restriction protects consumers from the fake Gold products that occasionally circulate.

As long as you are working with a reputable Gold IRA company you don't have to worry about these IRS requirements. The company isn't going to sell you anything that doesn't qualify for an IRA.

The IRS requirements for Silver are similar to Gold. Silver bars and Coins must be 99.5% pure or better except for American Silver Eagle Coins (91.67% pure).

Platinum and Palladium bars and Coins must be 99.95% pure.

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Fidelity Gold IRA

The Fidelity Gold IRA has two positive and one negative attributes.

On the positive side, the minimum Investment for a Fidelity Gold IRA is only $2,500 while most Precious metals IRAs require at least a $10,000 Investment. This low threshold makes it easy to start saving with a Gold IRA.

The second plus for Fidelity is that they don't offer any proof or special edition Coins for investors to buy. These Coins carry very high premiums and, for most investors, they are a bad Investment. Since Fidelity doesn't sell the overpriced Coins you won't be tempted to buy them.

Despite their positive attributes, there is cause for concern with Fidelity - the company has a C- rating at the BBB. Because BBB ratings are based primarily on how a company responds to customer complaints, a C- rating suggests that Fidelity's customer service is lacking.

Vanguard Gold IRA

Vanguard has very limited offerings in the Precious metals sector.

There is no Vanguard Gold IRA although that term frequently shows up in online search results.

On the company website they cite the volatility in the commodity sector as the reason for avoiding the metals.

Investors seeking exposure to Gold at Vanguard will find that they are limited to the Global Capital Cycles Fund (VGPMX) which, according to its prospectus, deploys 25% or more of its capital in the Precious metals and Mining stocks.

Pros and cons of investing in Gold : Files

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Gold Retirement account - citation - Satori Traders

Gold Retirement account - links - Satori Traders

Gold IRA company reviews

After you decide to invest in a Gold IRA, the next challenge is to pick a reputable company to work with. There are numerous Gold IRA companies and they all try to claim that they are the best. How do you sort through these companies and identify the one that is best for you?

At Satori Traders we recommend that you make a list of Gold IRA companies and then compare them on the factors that are most important to you. But how do you get this list to start with?

If you go online and search for something like "best Gold IRA companies", all of the results you will find are posted by affiliate marketers who make money by sending customers to the Gold IRA companies. That's just the way the industry works these days.

For the most part, these affiliate marketers have zero knowledge about the Precious metals or about tax-advantaged Investment vehicles like self-directed IRAs. They are simply directing you to the Gold IRA companies that pay them the largest commissions, whether those companies are reputable or not.

In contrast to these internet marketers, here at Satori Traders we specialize in the Precious metals and have been doing so for 20+ years. We understand tax-advantaged Investments and the ins-and-outs of the Precious metals sector. Our knowledge and experience lets us pre-screen Gold IRA companies and sort the wheat from the chaff, so to speak.

In the table below we present a handful of companies that meet our requirements. You can use these companies to start your list and begin the comparison process.

These are some of the factors that you may want to consider when you compare Gold IRA companies:

Number of years in business
BBB rating
Minimum Investment

As part of your selection process you will want to look at Gold IRA company reviews available online at the business rating agencies like Better Business Bureau (BBB) and TrustPilot. These companies evaluate businesses based on their transparency and the way they handle customer complaints.

Best Gold IRA companies

There are any number of factors you could choose for comparing Gold IRA companies.

Years in business, BBB ratings, and minimum required Investment are obvious data points to consider. Another factor to look at is how much emphasis a company places on educating their clients.

The best Gold IRA companies understand that investors have limited knowledge about Precious metals, so they provide videos, articles, and guides as educational resources. At a minimum, a reputable company should provide some kind of 'Gold IRA 101' guide explaining the basics of investing in a Precious metals IRA.

Ideally, a company will provide most of their educational resources online so you can study those materials independently. Some of the companies, however, prefer to engage with you first and then send you appropriate materials via the mail or email.

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