When the global economy is volatile and the political climate seems uncertain, precious metals make excellent IRA investment options. As the stock market becomes more unpredictable and the United States presidential election looms, many investors are starting to have a meltdown when it comes to their IRAs. Yet many are unaware that they can combine the tax advantages of their retirement accounts with the benefits of buying gold, silver, platinum and other precious metals.
In the United States, the IRS allows for investors to acquire hard assets outside of the stock market, such as precious metals, to diversify their portfolios. This applies to many types of retirement accounts, such as an IRA, HAS, ESE or Individual 401K. It’s an excellent way to add balance to your portfolio and hedge against market volatility, while enjoying the great tax benefits.
Taxpayer Relief Act
Often times, stocks and bonds can be risky investments, which does not bolster confidence for those planning for their future. However, this was recognized and addressed by Congress with the 1997 Taxpayer Relief Act, which set new rules for tax-deferments for special custodial retirement accounts with gold, silver and other precious metals. This made it possible for investors to hold financial assets such as precious metals in the form of bullion or coins in their IRA accounts.
If you’re looking to create a strategically balanced retirement portfolio that can withstand negative interest rates, weakened currencies and global uncertainty, your best bet is to diversify your IRA with precious metals. When inflation or lack of confidence in Central Banks weakens currencies, the power of precious metals as currency remains strong overall. When the stock market grows unstable, precious metals tend to move independently, and therefore, will help you retain balance and hedge your portfolio.
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