Many investors may not know much, if anything, about precious metals IRAs. This video explains
how a precious metals IRA works, as well as some general benefits of precious metals investing.
First, what are IRAs? IRAs are individual retirement accounts and were created to facilitate
retirement savings. There are two types of IRAs: the traditional IRA and the Roth IRA. Traditional
IRAs allow up to $5,000 in pretax income to be invested per year. When funds are withdrawn during
retirement, the money and any capital gain is taxed. Roth IRAs also allow up to $5,000 to be
invested per year. However, unlike a traditional IRA the money deposited into a Roth IRA is
after-tax income. When funds are withdrawn during retirement, the money and any capital gain is not
taxed. A precious metals IRA can be either a traditional IRA or a Roth IRA. The only difference
is that instead of investing in stocks and bonds, a precious metals IRA invests in precious metals,
including gold, silver, platinum and palladium. Opening a precious metals IRA is simple and only
requires that the broker also be a licensed precious metals depository. Not all brokerages offer
this service, and it does entail a nominal annual storage fee. You can also rollover your existing
traditional or Roth IRA or a 401K into a precious metals IRA.
There are restrictions to what a precious metals IRA can hold. But the range of investments
permitted in a precious metals IRA was expanded by Congress in 1997. Once your precious metals
IRA is open and funded, you can buy your precious metals investment online at gainesvillecoins.com
or with one of our traders. We will then ship your order to the depository. If and when you decide
to sell your investment, Gainesville Coins will provide you with liquidity and buy your precious
Finally, the benefits of a precious metals IRA as part of a broader retirement portfolio is
rooted in modern portfolio theory which basically states that portfolios that hold non-correlated
assets offer a better risk reward profile. In other words, adding precious metals to a broader
retirement portfolio will create a lower risk and a higher reward portfolio relative to a portfolio
that does not contain precious metals.
We hope you found this video informative. If you have any questions, please call us at
813-482-9300 and we'll be happy to further assist you.