Investing in precious metals is challenging and somewhat frightening if you’re brand-new to this investment style. Since the process is totally new to you, you might have your reservations about getting started. On the other hand, you realize it’s a smart investment, and it’s especially true in a confusing and depressed market.
The best way to purchase gold, silver, platinum, or palladium is through a precious metals IRA. Why? We prefer this investment vehicle because of the many benefits it provides, which we’ll share in a moment.
Are you prepared to become an investor in precious metals? Keep your worries on the back burner because we’ll help you begin opening an account and investing in a gold IRA.
To find out more about this process, and other pertinent information, keep reading to discover our strategy.
Three Reasons to Invest in a Precious Metals IRA (Especially during the Coronavirus Crisis)
The coronavirus has completely blindsided America and the rest of the financial world. Although we’re not necessarily in a complete meltdown, we’re forced to temporarily close the economy while dealing with the virus.
The extent of the damage to the economy isn’t known yet. But the longer businesses remain shuttered, the more people will lose their jobs as businesses close forever.
Guess what? Between the recent $2 trillion stimulus package and the additional $2.3 trillion offered by the Federal Reserve, the US dollar will experience serious devaluation.
What does this mean? It means you’ll need more money to purchase the same goods and services.
As of now, companies aren’t raising prices because they’re afraid of being accused of price gouging during a crisis. Though over the next six months, the price of milk, eggs, toilet paper, and other goods will likely rise.
But you can protect yourself from inflation. Here are three reasons to invest in gold, silver, platinum, and palladium:
1. Corporate Debt Is at an All-Time High
Interest rates have been lower than ever for the last 10 years, even before the coronavirus crisis kicked in. Now rates are even lower.
With interest rates practically down to nothing, corporations have borrowed massive amounts of money because it’s cheap. These unusually low interest rates have caused corporate debt to grow out of control.
Why? Many big corporations fail to use their borrowed money responsibly. You’d think they’d use this cash to invest in their business to create additional revenue and jobs. Too often this isn’t what happens.
Instead, they use their borrowed money to give huge executive bonuses, buy back stock, and compensate their executives handsomely for subpar work.
As usual, large corporations have made themselves vulnerable and everyone will suffer now that the bubble finally busted.
2. The Stock Market Is in Massive Flux
Right now, stock market investors and big financial institutions are afraid of the future. With the coronavirus looming, we have no idea when things will get back to normal. We have no clue of the overall ramifications of this deadly virus and its overall effects on the economy.
In recent weeks, the stock market has seen some of its biggest losses since the Great Depression. Although the market has temporarily bounced back, the bulls will likely lose the battle for stock market supremacy for the time being.
Even financial guru Jim Cramer feels the market is currently overbought. And with all the uncertainty about our future, he feels it will go much lower in the near term.
George Soros, John Paulson, and other big-name investors are trimming their stock market positions right now. As the saying goes, it’s better to be safe than sorry.
Investing in a precious metals IRA is much safer right now. In fact, gold has gained an additional 12% in value over the past six months. The DJIA, on the other hand, has dropped more than 5000 points since February.
3. The Trend Is Not Our Friend
We’re seeing scary financial trends right now. In fact, these trends remind us of things that happened prior to other financial collapses. So it’s frightening to see the US economy heading in this direction.
Prior to the market taking a major hit in March 2020, the S&P 500 was valued 60% higher than it was actually worth. Prices have come down quite a bit since then, but this is terrifying nonetheless.
Why? The S&P 500 only acted this way on three other occasions. It was like this in 1929 before Black Tuesday. It was like this in 2000 before the tech bubble burst. And it was like this in 2007 before the housing markets and financial markets completely imploded.
Smart investors will protect themselves from these dangerous financial situations. They’ll invest in precious metals, the only commodity that gains value during times of economic uncertainty.
Seven Factors to Look for When Choosing a Gold IRA Company
Not all precious metals IRA companies were created equally. In fact, certain companies have better reputations than others. Instead of choosing a gold company for you, we’ve decided to educate you as an alternative.
After evaluating numerous gold companies throughout the years, we’ve discovered seven important factors to use when assessing these services. Each factor is important individually, but combined they determine if a gold company is worthy of your investment.
1. Does the Gold Broker Sell IRS Approved Physical Precious Metals?
When investing in gold, silver, and other precious metals, it’s important to buy physical metals. You aren’t trying to buy mining stocks, gold ETFs, or even numismatic coins.
The IRS has only approved specific precious metals for a gold IRA account. But many gold companies sell metals that aren’t IRA approved, so you must be diligent when searching for a broker. Otherwise you may end up purchasing gold or silver coins or bars that aren’t acceptable in a precious metals IRA.
Certain high-level companies focus strictly on selling gold for precious metals IRA accounts. Choose this style of broker to set up your self-directed IRA.
2. How Well Do They Stack up on Peer-Reviewed Websites?
Some gold companies fare better than others on peer-reviewed websites like the Better Business Bureau, Business Consumer Alliance, or Trustlink.
As an investor, your goal is to choose the best. If you’re considering a particular gold company, see how they stack up on peer-reviewed websites.
Do they have an A+ rating on the BBB? Has the Consumer Business Alliance given them an AAA rating? Do they have too many unresolved complaints?
You should only choose a gold broker with a top rating and zero or few complaints. Otherwise you’re shortchanging yourself by doing business with an inferior organization.
3. Do They Have an Overabundance of IRA Fees?
Every gold broker will have IRA fees. This is par for the course and you should expect them. Just because a company charges fees, it doesn’t mean they should overcharge their clients.
Some brokers charge higher fees than others. Pay attention to these additional costs because they minimize the value of your investments. Find a gold company with low fees and an excellent reputation and you’ll be fine.
4. Do They Offer Segregated or Co-Mingled Stockpiling?
You want your gold investments safe and secure. You do not want them locked in a vault shared by hundreds of other investors.
Find a gold broker that offers segregated storage. Otherwise your gold will be co-mingled with other people’s investments, which isn’t a good idea.
5. Does the Gold IRA Company Have a Precious Metals Buyback Program?
No one can predict the future, unless your name is Nostradamus. And even he got many of his predictions wrong.
Guess what? You might run into financial difficulties at some point before retirement. And you may need to sell some of your gold quickly.
Find a gold broker that has a rock solid buyback program. Make sure they pay the going rate for your investments, even if this rate is higher than what you paid.
6. Do They Offer Solid Customer Support?
Some precious metals companies have terrible customer service. Even worse, they bombard their customers with sales pitch after sales pitch, which can be very annoying.
You do not need your gold broker constantly trying to sell you new products. And you need your questions answered promptly and correctly when you have them.
Find a gold broker with excellent customer service and support. And make sure they aren’t going to hit you over the head with a million sales pitches every week.
7. Do They Provide Fast Account Set up and Delivery?
Some brokers take forever to set up your gold IRA account. Other brokers take forever to ship your gold to your dedicated vault. Make sure your broker excels in both of these areas. Otherwise you’ll be very unhappy with their service.
The Right Way to Begin Investing in Precious Metals
Before we leave, please remember that as a beginner, investing in a gold IRA shouldn’t be difficult. Believe it or not, it’s very easy if you pay attention to our guidelines above.
Instead of choosing the first gold company to come along, take a few days to research your options. You don’t want to choose a company with a bad reputation. They’ll end up disappointing you at some point during the precious metals IRA buying process.
Who needs the hassle? You have other things to worry about with the coronavirus, the collapsing economy, and the fear of losing your job.
Please use this guide to your advantage. And remember to begin investing in gold to protect yourself from the recession, the disintegrating US dollar, and the economic uncertainty created by the devastating effects of the pandemic currently rocking our world.