Understanding the Gold IRA Investment

It goes without saying that the demand for precious metals grows higher and higher everyday. This is the reason why gold has been seen by some as a safe and more profitable retirement investment when compared to stocks, bonds, and real estate. It is important however to understand how to go about investing in a Gold IRA and to know it’s benefits.

What is a gold IRA?

It is where you invest in gold products whether in coins, bullions or ETFs through a gold IRA account. This form of investment is advantageous when compared to just investing in gold since you get to enjoy the tax benefits that come with the IRA account.

How to put gold in your IRA

choosing a gold ira custodian

Choose a custodian

The first step is choosing a gold IRA custodian. The custodian is the one who will securely hold your gold for you through out the whole rollover process. Gold IRAs are not handled by traditional banks and financial institutions but by specialists in the field and should be handled by an IRA custodian.

You need to take your time and chose the custodian wisely. Studying the different gold IRA company reviews can give you an insight on how the customer’s perceive the company and services offered by it. The company with the best customer feedback will obviously be a safe bet.

Is gold allowed in your IRA account?

Once you find the right custodian, the first thing they will ask is whether your current IRA allows for gold and other precious metals. If it does not, your custodian will assist in setting up a new one. Setting up a new self-directed IRA comes with numerous benefits such as you are able to take charge of your investment as well as put your money tax free in other investment areas.

For more in depth information on how to invest in a gold retirement ira, I recommend visiting www.goldhawkresources.com. Investing in a gold IRA is one of the most stable ways of investing for your future especially looking at the current economic uncertainty. The demand for gold and its scarce nature guarantees that its value will keep on climbing.

3 Biggest Reasons On Why to Invest In Gold

Gold is certainly one of the most precious metals throughout all of history. Throughout history, people have been holding to gold for various valuable reasons. Gold is also often considered as a foundation asset within any investment portfolio and long-term savings. Here are 3 of the biggest reasons on why you should invest in gold.

Gold popularity is increasing

Gold is widely viewed in a positive light in countries that are starting to come to the forefront on the world scene. Developing and prominent countries like Russia, India and China have also been accumulating gold lately.

Gold is Rising in Popularity

There has been also an increasing demand of gold in Western countries in last couple of years. Gold, as an adequate replacement to money is also gaining big credence since many worldwide banks are actually backed by gold prices.

Portfolio diversification

Majority of investment portfolios are primarily holding ordinary financial assets like bonds and stocks. With the diversification of your portfolio with gold investments you can certainly offer added security for any unforeseeable value fluctuations.

Other assets that you may own such as stock and bonds are far more fluctuating in their value, and therefore with diversifying your assets you can be fully secured. Portfolios which contain gold are mostly considered as less volatile and far more robust than the ones that do not contain gold.

Supply and demand

The price of gold fully tracks shifting balances of supply and demand. Gold demand has shown us a very sustained growth for the past few decades which is always a good sign to start investing.

At the same time of its growth, rising costs of production haven’t resulted in any major
increases for gold mine output since 2002. All of these factors for supply and demand have certainly laid various valuable foundations for gold’s positive long term outlook in the last couple of decades.

To summarize, we think that investing in gold is a very smart decision because you can diversify your portfolio and secure your various assets this way. Gold has always had a price that is fairly steady and it has stood the test of time. And is a valuable asset to have to offset economic downturns and political upheaval.

Investing in Precious Metals

Precious MetalsEver since the advent of civilization, gold and silver are two metals that have been considered valuables. Even today, investors have a large chunk of these metals in their portfolios. However, apart from these two famous ones, there are other metals too that have gained huge popularity among investors today.

Let us have a look at a few nuances of investing in precious metals:

  1. Gold
  2. This metal enjoys being the most popular investment options among all precious metals. It is used in some industries but the major use of this metal is done as a currency and as a base for jewelry. Investors also are investing in gold stocks, bullion bars and coins, and other forms of investments.

    Markets determine the value of gold round the clock. Gold trade rides on the sentiments of people and with supply and demand. Gold is hoarded by people and when they begin selling it, the prices fall. On the other hand when the hoarding begins, prices begin surging.

  3. Silver
  4. Silver prices are more volatile than gold because they are driven by two factors; its role as a precious metal to be stored and its role as an industrial metal. While silver faces equal hoarding sentiments as gold, its industrial demand exerts all the more influence on its price.

    With new industrial innovations involving its use in batteries, microcircuits, superconductors, electrical appliances and other industrial items silver has gained more popularity as a precious metal from the investment point of view.

  5. Platinum
  6. Another precious metal worth investing in is Platinum. And like gold and silver, it is also traded 24 hours a day 7 days a week. This metal has the ability to fetch a greater price than gold primarily because it is rarer and less of it is mined from the ground.

    Other factors that have a bearing on platinum’s price are it’s industrial demand as an automotive catalyst to decrease dangerous emissions and as a petroleum and chemical refining agent. Ever since the auto industry has made the use of catalytic converters mandatory, this industry has become a major platinum price determining agent.

  7. Palladium
  8. Palladium is a relatively new metal in the world of precious metals. Investing in Palladium can be made in a number of ways such as through coins and bars. Palladium bars and wafers are available at a little premium over the palladium value.

    This metal gains value due to its usage in catalytic converters in place of platinum since it is cheaper but more heat resistant and harder than platinum. Fuel cells, dental and chemical usage further raise its demand.

It is wise to invest in precious metals to diversify your investment portfolio. You must know your risk taking capability and your goals in order to make a sound investment.

How You Should Invest in Gold

When it comes to investing your money for future profit, you need to do it right from the get go. In this era of inflation as well as unstable company stock prices, many have turned to the safer and oldest form which is gold investments.

You first need to know how to invest in gold and the benefits before you actually start the process. The following steps need to be followed when considering gold as an investment.

Know how much you want to invest

Deciding how much money you want to put in this investment is the first step. Your choice will be guided by several factors the main one being your financial status. The good thing about gold investing is that it is a long term investment and the value keeps on rising due to the demand of this precious metal.

Choose how to invest in gold

There are two methods in which you can invest in gold namely;

  • Gold shares
  • Physical gold

The first option of gold shares involves purchasing gold exchange trade funds (ETFs). These shares are traded in the stock exchange such as ordinary stock. This mode of investment is advantageous since the investment is secure and you need not worry about producing security for your gold.

The second option is investing in physical gold through gold bullion bars, gold coins or through jewelry. The fact that the security of the gold is your responsibility, most prefer storing it in safety deposit boxes and keeping its existence a secret. Or if you prefer you can store in a safe in your home. The gold can be sold after some time when its value appreciates.

Find where to buy Gold

If you are considering gold ETFs, you need to find the right broker so that you can buy the stock and start trading. Investing in physical gold on the other hand is much easier and you can purchase it from various stores including online.

It is important however you realize that gold investing is not cheap so you should do
your homework and only go with credible companies and institutions to avoid being ripped off.

Emerging Techniques For Gold Mining

Gold mining simply refers to the processes of extracting gold or its ores from the ground. The process involves different techniques and stages that ought to be followed if the right gold is to be mined.

The process of mining for gold has been a dirty affair and the mining conditions have also worsened. This is because the gold deposits that used to be easily accessible are now hard to find. As such, unpopular techniques such as open pit mining have emerged.

Here is a video explains the mining process.

The Process of Open Pit Mining

Majority of the newly mined gold has been obtained through this process. This has become popular compared to the methods of underground shaft mines. In this process, the miners get rid of big amounts of rock and the surrounding materials. The entire site has to be blasted for better results.

The ore is usually brought to the surface and then processed in order to get the mineral. The method is considered as unsafe because it leads to a lot of environmental destruction. Undeniably, open pit mines produce a lot of waste rubber and damages the ecosystems as opposed to underground mines.

Heap Leaching

This is yet another popular technique used to extract gold from the ore. After the ore has been obtained, it is usually crushed and then put into heaps. It is then sprayed with cyanide for the purpose of collecting the Gold. After the cyanide-gold solution has been obtained, it is then pumped to a mill for the separation process.

The gold is collected differently while the cyanide can be stored for future reuse. The disadvantage with this technique is the fact that the operations and stages take a long time before being completed.

The Amalgamation Process

This is a gold extraction process that involves the use of mercury. The two minerals are brought together to form amalgam, which is a mixture of Gold and mercury. The mercury can be separated from the solution using nitric acid to leave the Gold behind.

The process is widely used in small scale mining. However, it has received a lot of opposition and criticism because of the effect of mercury on the environment and the health of human beings.

Whether you are getting Gold from the beaches, rivers or land, applying the right technique is of great significance. It determines the end results of your mining. The above 3 are some of the reliable mining techniques that can yield remarkable results. As usual, the right safety precautions must be observed when mining.

Here is a video explains the mining process.