Wednesday, March 19, 2014

Decline of the US dollar and benefits of rolling over part of an IRA to gold and silver bullion

Polski: Sztabka złota ważąca 12,5 kg. Własność...
 (Photo credit: Wikipedia)
Gold is perhaps the only worldwide standard for comparing the value of other currencies. Unlike any other type of monetary system, gold has withstood the test of time and it continues to defy market collapse, economic downturn, and unpredictable, catastrophic occurrences. In fact, all other currencies are based on some type of gold or silver bullion, and the currency itself is just a synthetic representation of the tangible metal.

Gold is seen as a safe-haven asset, one that investors pursue when there is trouble in the financial markets. As tensions between Russia and Ukraine over Crimea rose in the last weeks, gold price has increased. This happens over and over again in turbulent times.

Currencies, especially the US dollar, are at a higher risk for experiencing inflation because there is never a strict limitation put on the amount in circulation. Mints and other currency printing agencies around the world can essentially create more paper and coin currency than there is gold to back it up. Of course the systems do not usually intend to create a disproportionate amount of currency, but in a day’s time, currency is lost, destroyed, recollected by the mints, or put away in a collector’s safe. There really isn’t a very efficient way to maintain an accurate circulation of currency that is truly indicative of the gold reserve. In other words, there is no way to keep a running database of what currencies are actually floating around for future spending versus the currency that has been lost or destroyed.

Individual Retirement Accounts, or IRAs, are a great way to invest your savings to tap into the opportunity for interest growth. Although there are a myriad of different types of investment accounts, an IRA is either controlled by an administrator or the individual.

One way to guarantee a baseline of investment value is by transitioning your funds into the purchase of gold. Perhaps you’re curious on how to achieve a gold IRA rollover? Basically, you have to first consider whether your IRA contributions are self directed or controlled by a trustee. If they are self directed, you can make the decision, without gaining permission from anyone else, to make adjustments to your investment account. An overseer would have to approve and facilitate the rollover transaction if your account is traditional.

There are several different companies that specialize in gold transactions, and the most realistic suggestion is for individuals to research and pick a company that appears to have the assets and reputation that efficiently meet your needs. After all, this particular company that actually buys the gold will physically store it for you as well. If you were to have the gold directly disbursed to you personally, be expected to pay a hefty penalty for early withdrawal. The facilitating company is known as a gold custodian.

In order to rollover your IRA funds into gold, the gold itself must meet quality standards. There are also limitations on the time span of the process and the total amount that one can invest annually. Once you start the IRA rollover process, it should be complete in no more than 60 days. If the transaction is not expedited accordingly, the investor, or yours truly, risks having to pay a withdrawal penalty. IRA investments are limited to no more than $5000 each year, but rollovers do not have a cap. In order to buy a significant amount of gold, you must start out with a reasonably valuable IRA account.

Why should you consider investing in gold? Despite mild variations and small fluctuations in the stock value, gold tends to be one of the most stable entities that exists. Any financial expert will advise their clients to diversify their portfolio, and don’t put too many eggs in one basket. Gold is a very secure basket that maintains its value over time. Gold is an especially smart choice when the overall market itself has had a significantly varied performance. Gold is a great way to maintain your investment values over short term fluctuations. 


  1. Nice read! Very informative. Did you know that Walmart has a tool that gives competitor prices? Full story here:

  2. I've said it once and I will say it again. Investing in a gold IRA is a better choice since the dollar becomes more unstable every year.


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