Featured Investment Information
Is Investing in Gold Worth it?
I don’t want to give you the impression that investing in gold is the holy grail of financial improvement or even retirement planning. Just like stocks and shares, the price of gold goes down as well as up, you can see that for yourself on the chart to the side of this section. But what I do want to do is give you the facts as I have found them, with links to the information, so you can make up your own mind as to whether investing in gold, especially within a gold IRA, is a worthwhile investment or not.
It is well documented for the fact that it is true, that over the lifetime of the stock market, all the precious metals, including gold, have been outperformed by stocks. Having said that, this did change recently in a dramatic way. Precious metals have outperformed the Dow Jones on a rather impressive scale, since the start of the new millennium in 2000.
You will see in the chart taken from Yahoo Money (chart also available here) that shows there was a 63.16% change from the start of 2000 to the end of 2014. Or to put it another way, when the market opened on 1st January 2000 it opened at 11,700 and when it opened again on the 1st January 2015 it opened at 17851.04. What this means is if you had invested in the stock market at the start of 2000, by the 1st of January 2015 you would have received a return on your investment of 52.6%. I think you would agree that considering the low return we currently get from the banks, a return of 52% is very favorable.
However if you had been investing in gold, how did that perform over the same time period?
The chart to the side here, courtesy of Goldbroker.com, shows that gold was at the price of $283 an ounce at the start of the millennium and it opened at the start of 2015 at the price of $1206 an ounce. That is a return of 326% – a big difference from the 52% gained from the stock market over the same period.
So yes, historically stocks have outperformed gold, but as the evidence shows, this has changed and the fact that it has happened over a 15 year period, and doesn’t look like changing, then investing in gold may be worth looking at, if you haven’t already.
So Why Invest in Gold?
From thousands of years ago, this metal has always been a big deal. I say it’s a big deal not only due to its worth but also because investing in gold has somehow always proved to be the best way to avoid inflation. Individual retirement accounts have been brought down by inflation especially for investors whose main focus was traditionally on the stock market, real estate and private equity. But buying a precious metal for the diversification of your portfolio, to increase your financial status and wealth, or to improve your IRA account, will always prove to be worthwhile. Here’s why.
Investing in Gold IRA Rollover
When considering investing in gold, one area that is currently getting a lot of attention is investing in a gold IRA rollover. There are numerous other ways to invest in gold and I do go through these on my designated gold investment page, but also what is being seen is that as more and more people look to hold their assets in IRA’s ($ 6.5 trillion in 2013), up to 4 percent is in non-traditional forms, such as gold. Although a gold IRA operates in the same manner as a traditional IRA, the main difference, of course, is it holds physical gold bullion rather than paper assets. there are a number of factors that need to be taken into consideration when taking out a gold IRA rollover. For one, the best way is to use it for diversification and not put all your retirement eggs in one basket. You want to ensure you use the best custodian you can get to set up your gold IRA for you, and that is why I have carried out extensive reviews of gold ira companies, for you so you can gain all the relevant information to help you when it comes to investing in gold.
Who To Buy From
If you are not interested in checking out reviews and just want to know who are the two best companies to buy gold from, check out my page on where to buy gold and who to buy it from. I recommend two of the world’s leading providers of gold, one by way of a gold IRA, and one by way of simple investment. I also give you extensive reasons as to why these two companies are the best gold IRA and investment companies around.
Important Information For When Choosing A Gold IRA Company
Fees – Some of the companies I have reviewed include custodian fees in their annual fee, others offer you the chose of various custodians, which means the fees you are charged can differ from one custodian to the next. Therefore, it is important that you get all the fees clarified up front and in writing before you agree to anything. Check my article on what custodial fees you will be charged, so you have a clear understanding if you don’t already. Also, you may want to consider companies with flat fees, that way you know you are not going to get a nasty shock later down the line.
Licensed by the IRS – Any custodian must be properly licensed by the Internal Revenue Service. The list of companies on the register who can manage your gold IRA account is easily available and you should ask your company of choice if the custodian they use is on that list and to prove it to you too.
Variety in Investment – I mention on my gold ira company review page that a quality gold IRA company will not try to sell you any other product etc. The reverse is also important. You want to make sure that the company you deal with allows you to invest in other metals other than just gold. A good gold IRA company will also let you invest in silver and platinum, coins, and bullion so that you can diversify your investments. However, if you only want to have gold in your IRA, then that is fine.
Proven Track Record – There are a lot of gold IRA companies that have impressive websites, offer great deals and incentives, but the question has to be asked, do they have a proven track record? I provide you with the best providers of information on a company’s track record, the Better Business Bureau, the Business Consumer Alliance, and Trustlink. Each one provides in-depth feedback on a company’s track record, along with reviews, both positive and negative, from past customers. Because you are potentially making a large financial investment, it is best to ensure you are working with a company that has a proven track record that is second to none, better to be safe than sorry.
Average Set-up Time – You will want to ask the company you want to do business with, what is their average set up time? How long is it going to take for them to get everything set up? Why is this important? Well, the longer you wait the lower the fees should be and you need to check this because there are one or two companies who actually charge large fees and have a long set up time. Also the longer it takes, the more you lose out in interest on your investment.
Ongoing Support – The final thing you may want to check is what ongoing support do they offer you once the account has been set up? Will the gold IRA company/custodian provide you will support for the life of your investment, or will they only provide support during the setup of the account, but you are on your own afterward?
Hopefully, all this information will help you choice the right company for you. So if you are looking to invest then check out the gold IRA companies that I have reviewed by clicking on the link below, there you will find all the relevant information you will need to help you make the right decision in choosing the correct company for you.