If you’ve been watching the gold space, you’ll know that the yellow metal is having a tough time. As of mid-2018 it was down about 4 percent year-to-date, entrenched in the summer doldrums.
Given that decline, many investors wonder whether investing in gold for retirement is a good idea. There are pros and cons to this strategy (learn about them here), but overall gold’s low price isn’t a major cause for concern — indeed, many successful investors consider a low gold price a buying opportunity.
Read on to find out three ways you can invest in gold for retirement. From physical gold to stocks to gold-backed IRAs there are diverse options for those who choose to prepare for retirement with gold.
1. Gold for retirement: Buy physical gold
The first and perhaps most obvious way that you can add gold to your retirement portfolio is by buying physical gold. Generally investors will buy physical gold in the form of bullion coins or bars through a dealer. While that might sound simple, as with any investment, it’s important to do your research and make sure you’re using a reputable dealer.
If you choose to buy physical gold for retirement, you’ll also have to consider where you’re going to keep your gold. Many investors opt to pay a fee to store their gold at a bank depository, but you can also set up your own safe at your home. You’ll need to think about what option is best for you.
To get more information about physical gold as an investment, check out our guide here.
2. Gold for retirement: Invest in gold stocks
You might think investing in gold stocks is only for investors who are deeply entrenched in the stock market, but the fact is that anyone can invest in gold stocks — if you make sure you take the time to monitor your investments. That means spending time choosing the right gold stocks to invest in, and sitting down on a regular basis to determine whether they are stocks you should still be holding.
If you’re unsure of how to do that, check out these tips on resource investing from industry experts like Rick Rule, David Morgan and Lawrence Roulston. Alternatively, you might want to invest in gold stocks via a gold ETF like the SPDR Gold Trust ETF (ARCA:GLD) or the iShares Gold Trust ETF (ARCA:IAU).
3. Gold for retirement: Invest in a gold IRA
Finally, if you’re interested in investing in gold for retirement, you may want to consider investing in a gold-backed IRA, or individual retirement account. Self-directed IRAs can contain non-traditional investments, including real estate and precious metals, though you’ll have to follow special rules.
For instance, the IRS only allows 24-karat gold bullion bars and coins to be included in gold-backed IRAs (with the exception of 22-karat American Eagle coins). Furthermore, gold used in gold-backed IRAs must be administered by an IRA custodian, and stored at a location approved by the IRS — in other words, you’re not allowed to store this gold at your house.
These and other rules can make setting up a gold-backed IRA intimidating — indeed, they’re considered “alternative investments,” and require some persistence and expertise to manage properly. But if you’re truly interested in gold for retirement they’re certainly an option to consider.
This is an updated version of an article first published by the Investing News Network in 2016.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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From:: Investing News Network