Like any adventure, there's always a bit of unpredictability, whether it's stocks, cryptocurrencies, forex, or commodities. With ups and downs from day to day, as you probably already know.
Now, if you're thinking of putting some of your savings into investments, it's a smart move to spread your bets. Mixing up your investments will help cushion you against those wild market swings. How about considering some precious metals - gold, silver, or platinum, but especially gold for your retirement? It will definitely add a nice bit of variety to your portfolio.
And you don't have to buy bars of gold or anything – there are derivatives and futures contracts that make it easier. It's all about finding that sweet balance that works for you!
A Little More About Gold Investments
You should be familiar with a few important details about gold investments before you get started. Here are some details.
Inflation and Gold
For decades, or maybe centuries, every time the economy becomes rocky, people consider investing in gold. Gold is considered as a good hedge against other portfolios. So when the stock market becomes volatile, economists and investors become afraid of inflation and look for gold as an investment option.
This also works the other way round; when the stock market is performing well, the gold price tends to fall (although not always). That’s when you should look to see if it’s the right time to buy gold or not.
Hedge Against USD
US dollar and gold tend to move in opposite directions. When the dollar is weak, gold tends to become strong. It means that you can consider gold as a hedge against the US currency when you build your investment portfolio.
Gold Stocks or Physical Gold?
Another thing that you should make clear to yourself is that you can either buy physical gold or buy “gold stocks”. What it means by buying gold stocks is that you are investing in a company that produces (mines) gold. In this case, when the stock market is up, your investment value goes up, so it may not serve as a hedge against other portfolios the way physical gold does.
No Interim Returns
One disadvantage of investing in gold is that you’re not receiving any returns while holding it. While stocks pay dividends and saving bonds pay interest, for example, some investments don’t pay until they’re released.
Endowment policies don't pay until the maturity date unless you cancel, and gold investments don't pay until they are sold.
Check The Tax Rate When You Sell
One thing you need to keep in mind is that when you sell gold, you may be taxed on the profit (the selling price less your original purchase price, less qualified associated expenditure.) It’s called Capital Gains Tax, but it’s not straightforward, or hard to explain because the tax rates and rules vary from country to country.
An advantage of investing in gold, however, is the favorable tax treatment. In the USA, if you invest in gold for the long term (more than 1 year), you’ll be taxed at a lower rate. In the UK, if you invest in gold coins, you may not be taxed because coins will be treated as legal tender.
You won’t be taxed if the amount of profit is low because the exemption rule applies. For example in the USA, the first $40k or so is exempt, while in the UK, the exempt threshold is much lower.
Don’t Forget The Costs When you Sell
As the value of gold increases, you'll feel ready to sell it, but you must remember the various costs associated with your investment. Your profit will not just be selling price less purchase price. The storage cost and the "premium" are two of the expenses you would have incurred.
If you have experience buying company shares, then you should be familiar with a little extra that you have to pay. A premium will be added to the price of gold when you make a purchase. Think of a premium as a service charge. The good news is, these costs should be deductible from your capital gains tax (NB: depending on your country).
Should You Buy Gold Bars or Gold Coins?
Bars or coins, both have advantages over the other in different ways. Gold coins are minted every year, therefore, have historical values. After all, investments are not always made for financial purposes. However, it means that because of the historic value, it's harder to determine the gold coin's actual value against the current gold price.
On the other hand, the value of a gold bar can be fairly easily quantified from weight and purity. Gold bar prices can be more accurately predicted since they reflect current market prices. So if you’re not bothered about the reason behind each gold coin production, etc, then gold bars are a straightforward option to invest in for financial security purposes.
Whichever way, you can consult your broker company and They will give you all the information you need to make the best purchasing decision.
Where Can Your Gold Be Stored?
Of course, some people store their precious metals at their residence, assuming their home security is much more advanced.
But a safe storage area is necessary for gold, which is an expensive commodity. You cannot store the precious metals at your house regardless of how advanced your home security is.
IRA gold can be purchased by brokers, and the account needs to be created and administered by custodians who will store your bullion. Custodians can be banks, credit unions, or special brokerage companies approved by authoritative financial bodies. Needless to say, the storage facilities are equipped with a hi-tech security system, plus a 24/7 monitoring of the facility.
Gold Investment For Retirement
Gold IRAs are available as new Individual retirement accounts (or as rollovers of existing other IRAs). The company you choose for your Gold IRA has a great deal of influence on your financial success. You can accomplish your retirement goals with gold companies with high qualifications. So let me share with you some of the questions people ask when searching for the best gold IRA company.
An IRA (Individual Retirement Account) is an account for individuals to save for retirement, so it’s designed as tax-efficient.
Individual retirement accounts allow retirees to save for their future on a tax-free basis. Financial institutions must be your partners in opening an account.
Gold is not allowed to be purchased with this kind of savings plan. An IRA must be self-directed in order for you to purchase precious metals.
There are different forms of IRAs such as traditional IRAs, Roth IRAs, and so on. Gold IRAs allow you to invest in physical gold, but they also offer other precious metal options like platinum and silver, and/or other precious metals.
Of course, you are not managing the account on your own. There are brokers who facilitate the process of opening a gold IRA account for you and purchasing precious metals on your behalf. Their physical storage of precious metals is also taken care of, so you won't be concerned about it. Finally, whenever you wish to sell your gold, they will handle it on your behalf.
Also Read: 7 Ways To Make Money For Retirement
Who Holds Gold in an IRA?
A gold IRA account is similar to a regular individual retirement account but instead of dealing on paper, it supplies with physical bullions or coins approved by IRS are held. Likewise, the precious metals are held in a safe deposit box for the benefits of the IRA account owner.
Why Invest in a Gold-Based IRA?
There are several advantages of investing in a gold-based IRA. First of all, the price of gold isn't affected by market ups and downs so much right now. Gold carries a different value than paper assets. It has been used as a currency for ages, and today, gold is a popular form of exchange.
Since it increases in value when other currencies lose value, it is an excellent inflation hedge. Furthermore, its value remains even during times of geopolitical uncertainty. It’s also easy to convert into liquid money and can be used to trade anywhere in the world.
How Do You Choose the Right Gold IRA Company?
Each gold IRA company offers unique services and there are always advantages as well as disadvantages. What you really want also depends on your future goals, your retirement plan, and how much you can afford right now. All because after all, it comes down to your personal needs and whether or not the company meets those needs.
Before you settle for a certain company, the least you can do is to do research and find out about their terms, conditions and charges. But you should always speak to the helpline and send emails to the support to see how helpful the customer service agents are. Needless to say, make sure that the company you opt for is approved by a relevant authority, such as IRS in the States.
Here are some of the reputable gold IRA companies in the USA.
*** The prices indicated are at the time of writing and there may be changes.
- Gold Alliance (https://goldalliance.com/ira-the-basics) - There is no minimum investment, and it offers precious metal storage for free. But charges $175 per year to maintain your account. Offers buy-back guarantee.
- Lear Capital (https://www.learcapital.com/gold-ira/open-rollover-account) - The minimum investment is $7,500. Annual fee of $180 including shipping and insurance. No transfer fees from another account to an IRA. Over 20 years in business, therefore customer service is said to be reliable.
- Orion Metal Exchange (https://orionmetalexchange.com/ira) - The minimum investment for IRA is $5,000, but no setup fee or transfer fee. Look for a free storage promotion when you consider opening an IRA account.
- American Hartford Gold (https://www.americanhartfordgold.com/ira-retirement-accounts) - No minimum IRA investment, no setup fee or shipping fee. Buy-back guarantee, and it’s also renowned for providing good customer service.
- Oxford Gold Group (https://www.oxfordgoldgroup.com/gold-silver-ira) - Minimum IRA investment is $7,500. The annual maintenance fee starts from $175. No shipping fee. With over 20 years of experience, helpful advice as specialized in IRA investments.
- Patriot Gold Group Gold IRA (https://www.patriotgoldgroup.com/precious-metal-ira) - Also over 20 years of experience, the minimum IRA investment is $15,000, plus a $225 setup fee.
Can You Make Money As A Gold Investment Affiliate?
Gold investment affiliate marketing might sound like a shiny opportunity for your retirement, but there are some pretty big hurdles that often get overlooked.
Fierce Competition in the Gold Market
First off, the competition is intense. You're not the only one who thought, "Hey, gold investing sounds lucrative!" Loads of people are trying to get a piece of the pie, and this means the market is crowded.
Standing out in such a packed space is tough, and let's be honest, most folks get lost in the crowd. You're up against seasoned pros who've been at this for years, and catching up to them is no small feat.
High Costs and High Risks
Then, there's the issue of cost. Gold isn't cheap, right? And as an affiliate, you're banking on the idea that people will be willing to invest big bucks through your links. But here's the thing: gold prices can swing wildly.
They go up, they go down, and predicting these movements is like trying to guess the weather in a month. This unpredictability makes it a risky bet for both you and potential investors.
The Challenge of Convincing Investors
Let's talk about trust. Convincing someone to invest in gold through your affiliate link isn't a walk in the park. People are naturally cautious about where they put their money, especially in something as volatile as gold.
You need to be persuasive, knowledgeable, and trustworthy – a combo that's hard to nail down. And with so many others trying to do the same, it's easy for your voice to get drowned out.
The Learning Curve
There's also a lot to learn. Gold investment isn't something you can just wing. You need to understand the market, the factors that influence gold prices, and how affiliate marketing works. Let's be real – not everyone has the drive to deep-dive into such a complex subject.
Finally, let's talk marketing. To be successful, you need to be a whiz at online marketing – SEO, social media, content creation, you name it. And guess what? These skills aren't something you pick up overnight.
Plus, you're competing for attention in an online world that's already bursting at the seams with ads and offers. Getting noticed is a mammoth task.
The idea of making money as a gold investment affiliate might glitter. But it's actually a lof of time-consuming jobs to do to convince others to spend thousands of dollars.
Is that really you want to do for retirement?
From fierce competition to the complexities of marketing and the volatility of gold prices. It's not impossible, but it's definitely not as straightforward as it might seem, you see?
Is Gold A Good Investment For Retirement?
It can be challenging to find a good investment broker that genuinely helps you plan your retirement. Doing research ahead of time makes the process easier. A gold IRA company that provides high-quality services and a wide selection of investment options is top-of-the-line.
By doing so, you will be able to maximize your investment and reap all of the retirement benefits as planned.
Author Bio: Kiki Broadway
Kiki is an ex-banker, realtor, financial advisor, turned singer/performer in her 30s. Now semi-retired, successful affiliate marketer in her own right. Her level-headed days are behind her, and now she enjoys spending time with her family and hobbies.