Since the 1980’s gold bullion and gold coins have been able to be held inside of a gold IRA as a tax deferred gold investment vehicle. Little is said about a gold backed IRA however, because there is little profit to be made by the companies who can actually set one up, and unlike 401ks and mutual funds, there is no annual management cost that goes to some overpaid fund manager who sits up in a big glass building somewhere in New York or London. There is however a small annual fee to the vaulting company who stores and insures the gold coins and gold bullion for you.

The Pros Of Having A Gold Backed IRA:

First, the fact that gold is money and cannot go broke is perhaps the biggest reason to have a portion of your wealth stored in a gold IRA in the form of gold bullion and gold coins. Unlike stocks, bonds, mutual funds, or even cash, gold cannot become worthless. Gold coins and gold bullion do not rely on any bank, company or government to redeem them as wealth. When you buy gold bars or gold coins you are simply transferring wealth from an unbacked currency to a tangible form of physical wealth. To quickly clarify between gold bullion and gold coins here is the difference; when you buy gold bars you are purchasing gold bullion, to be legally called a gold coin, the coin must be minted by a government, not a private mint.

Second, the annual costs of owning a gold backed IRA are quite often substantially lower than the costs of maintaining mutual funds or stocks and bonds inside of a 401k or IRA type product. I have seen a couple of documentaries about how high and how hidden the fees associated with these accounts are, and it is mind-blowing. Ever wonder why fund managers have $250,000 sports cars, $3 million apartments, and a home in the Hamptons? Because you pay for it, that’s why.

Third, A gold backed IRA may be the easiest and least expensive way for you to buy gold bars and begin holding physical gold coins and gold bullion. These days you need a sound financial strategy and a keen mind in your corner, because with all of the financial risks and uncertainty about, not to mention all of the legalities of financial planning, hope and luck and faith in the system is not enough anymore. For instance if you are 56 and you have a substantial IRA that has been losing money, you can open a gold backed IRA and buy gold bars and gold coins with the funds from your old IRA and pay no taxes at this point. When you retire in 9 years, and are in a theoretically lower tax bracket, you can liquidate your IRA, pay the taxes due, and have the gold bars and gold coins shipped directly to you so that you can hold them physically yourself as you see fit.

There are always questions to be asked, but make sure you ask someone who has the right answers and your best interests at heart. Call ITM Trading, we make owning gold easy.