This page contains all you need to know about using gold as a form of investment vehicle in your retirement account.
This is How A Real Gold Ira Investment Works
These Three Steps Were Highly Confusing to me……
- Purchase gold. (Make sure it’s an approved version by the IRS)
- Use an IRA Custodian to set you up with a self-directed IRA Account.
- Secure the gold in a depository or vault.
I didn’t know where to go….and I wanted to continue exploring this option.
Not only is this process confusing but you want to work with someone who understands that you may have a set needs including:
- Protecting your family from the collapse of the U.S. Dollar
- Understands why a fiat-based monetary system is highly unstable and how it never has worked in the history of man
- What inflation does to your money
- The purchasing power of our paper money becomes worth less as time goes on
- Understands the pitfalls of investing in precious metals
- Why investing in the hard asset itself is the only SAFE way to invest
In all the companies I’ve researched and called up, only one company I found actually understood the above 6 key points, and knew so much more. They seemed genuinely interested in protecting and securing my family’s future and not just selling me gold so they can make a quick buck off me.
That personal touch was really important to me. They also handled all the paperwork and regulations so that I didn’t have to. The only piece of paperwork I had to fill out was a simple 1 page form.
But I will talk more about that company in a second. First, I want to go over the details of the 6 point list I made above because some of my readers don’t know everything just yet and I want to save them and you some time from doing excess research. On top of that, some of my readers aren’t really sure if precious metals is right for them, which is fine, and that is why sites like mine exist to help guide you to the answer that is best for you and your family, even if it means gold and silver aren’t your ultimate choice.
Why Is The Dollar So Weak?
In a nutshell, it’s a combination of excess greed and an unwillingness to embrace self-responsibility. Why work hard when you can just get what you want from the government via handouts and bailouts. This type of thinking has permeated into the minds of too many people and now many of them can’t or won’t take care of themselves. As a result, the government has become overburdened with so many needy individuals.
Then we had the bank bailouts of 2008/2009. This is what is called “privatize the profits, socialize the losses”, the type of excess greed that hurts all of us in the long run. The government tax payer (that’s you and me) takes on the losses of big banks and hedge funds, while we don’t get any of the profits, and hence our money back, from any gains these same companies make. It would be like me making a million dollars by betting $500,000 and keeping all the profit, but if I screw up and lose my $500k, I make you give me back that $500k via a bailout and your tax dollars made it possible. If Uncle Sam comes up short, they tax you more, which is exactly why President Obama is so adamant about raising our taxes.
This then causes the government to borrow more because her expenses are far greater than our income because there’s an emergency that needs to be paid off. On top of that, there’s welfare, healthcare, the military, education, the environmental and health department, etc that has ongoing expenses as well.
Government is too big and it’s getting bigger. At the time of this writing, the U.S. debt is $16.89 trillion dollars, and climbing fast.
At first, many nations were willing to loan us the money to pay our expenses. Now, nobody wants to loan us anymore money. Is it any wonder why?
Did you know America is now the #1 country with the highest debt?
But the American government still has to pay her expenses and make interest payments on the debt. If you take a look at the website USDebtClock.org you can see for yourself the horror of the American financial situation.
With nobody to borrow from and no willingness to declare bankruptcy, what does the American government have to do?
You guessed it, print more money. This is exactly what the U.S. Federal Reserve is doing and it’s called “Quantitative Easing”.
But then, doesn’t printing more money lead to inflation? Yes, it does. And you already know more inflation means less purchasing power.
The combination of more dollars being printed (more monetary supply according to “fedspeak“) and greater inflation means there is an instant 1-2 punch to your buying power.
Gold, silver, and other precious metals like platinum and palladium are natural protections against this hard hitting financial disaster because it simply rises in price according to the true value of what your assets are worth. In the history of finance, precious metals have never gone to zero, and I’ve done a lot of research to try to find out if it ever did. That should tell you something about the power of gold.
Fiat Currencies Never Last
Our history is filled with many failures. One of them is the concept of paper money that is backed by nothing. Our founding fathers knew this, so that is why traditionally, our money was backed by gold and silver because they understood that man was fallible. They knew that there had to be some kind of hard rule set in place to constrain the flaws and excessive greed of mankind.
It was our greatest Founding Father, George Washington who said,
“Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice.”
He said this almost 240 years ago. This guy was pretty wise and smart to predict the same thing would happen today, long after he has passed onto heaven.
The most famous example of a failed fiat currency system is the German Weimar Republic of post World War 1. Saddled with war reparations, the debt was enormous on the German people. It didn’t help that the whole world literally hated them for the destruction they caused.
Financially and emotionally crushed, the Weimar government printed money like crazy. The story of how an old woman used a wheelbarrow full of paper money to buy bread but had her wheelbarrow stolen while the money was left behind came from Weimar Germany (It actually happened, sadly). The hyperinflation from all the money printing literally destroyed Germany. Her people were left destitute, unruly, and rioting. Chaos was everywhere.
And the Germans were furious. They elected one man to fix all of Germany’s problems. And you know who that man was?
While I hope such a man never comes into existence ever again, you have to understand how someone like that gets into power. It’s almost always during the worst of times for a nation. America is doing exactly what the Weimar Republic did, and our leaders seem to ignore the wisdom of history.
Why Is Inflation So Bad? Can’t I Just Earn More Interest/Money To Compensate?
I use to actually think inflation wasn’t so bad. If prices go up 10% I got more interest from my investments.
Then 2008 happened and I realized the naivety of this thinking. I pretty much saw what losing 90% of my investment value looked like.
And I was apparently lucky because I still had 10% of my money left versus others who lost everything. I can’t imagine the devastating effect on not only that person’s life’s work but their families. What will they do, now?
Inflation increases money supply and interest rates. The problem with this it makes the monetary markets so unstable because there’s so much money chasing the same amount of assets, that greed overtakes rational thinking and before you know it everyone is placing large bets to make the “big payday”. It’s basically gambling on steroids, except that if you lose, you lose trillions of dollars.
All it takes is for one bad loss to lead to another, who can’t pay back the money for that loss because they likely borrowed money to make that gamble.
So even if your assets (which are likely in someone else’s company or stock) generate more income, it means nothing if the base asset values goes down to almost nothing. Who would want to base their family’s future on something like that? I wouldn’t.
It’s interesting to note that precious metals, especially gold, actually went UP during this crisis. Yet, the mainstream media never reported this. Why? It could have helped save so many people’s lives.
Your Paper Money Buys Less And Less….
This will be short but it’s obvious to anyone. If your $10 buys 3 gallons of gas and a loaf of bread, then you may or may not be ok with that.
What if inflation gets so high that the same 3 gallons and loaf of bread now costs you $100? How are you going to get enough money to afford that? In Zimbabwe, their inflation got so bad, they had to print billion dollar bills, which they also eventually abandoned because it was so worthless.
Gold and silver can protect you from this because their value always reflects, ultimately, the true value of any asset or commodity. An extremely high end suit in 1900 costed $20 or 1 ounce of gold. Today, that same ounce can buy you that same suit with money to spare for accessories. That same $20 wouldn’t even be able to pay the sales tax on that same suit.
This is your paper money buying less and less…
Pitfalls To Precious Metals
While it may seem gold is infallible, like anything else it has its shares of flaws too. One, it is volatile during the short and medium term. This is why it hasn’t done so well between 2011 and 2013, yet it did really well in the 2008 crisis and the years after it.
You won’t get rich overnight. You’re not suppose to. This is a commodity that only acts as a protection asset against inflation and economic instability. As more and more people in this world realize that our financial system is not as stable as it seems, more will lose confidence in the global markets and begin to sell, which will eventually trigger a panic. Combine this with the obscene debts of world governments and you have a recipe for mental anguish, which will quickly convert itself into financial pain.
If you buy precious metals now, which is a good time to buy while it is still cheap, you will probably experience some dips in your investment which could cause you a little discomfort. It won’t help that many financial news you read will tell you how it’s a poor investment.
I won’t make any judgements on you. Only you can decide what is best for you and your family because that is the happiest way to live. I just personally choose to have something tangible and not flimsy like stocks and bonds because the real health of the American and world economies are too weak and taxed to death.
Why Gold May Be Most People’s Only Choice?
As I said before, I haven’t found an instance where gold went to zero. This only refers to the actual hard physical gold asset that you hold in your hands. For almost 6,000 years human beings for some strange reason believe in this yellow’s inherent value.
I think it’s because it has a certain faith that is unshakeable, no matter how detached we become from money or ideology or whatever you may believe in.
As many people begin to lose their investments to falling prices, they will start to notice how gold and silver won’t go down as much as everything else. They will also be especially attracted to the fact that nobody is willing to sell it to zero or “too low of a price” for the reasons mentioned above. Since there’s so little of these precious metals in the world, the demand for it will skyrocket the price. You’re going to want to hold some of your wealth in these metals as a result.
So, Now What Do I Do?
If you have read this far, I want you to congratulate yourself right now.
Seriously, pat yourself on the back.
You now know more than most financial pundits could hope to know. You also are privy to the factors that are not talked about in the media, which is the real focus of your ongoing efforts to protect yourself and your loved ones.
If you’re thinking about making the plunge into precious metals, I highly recommend talking with an honest dealer. There are many out there who just want to make money off your back and then forget about you after the sale. I don’t like that very much.
I wanted to find a company that was truly interested in a long term relationship with me because I wanted extra guidance and support to help me protect my loved ones. I also wanted someone who didn’t have any complaints with the Better Business Bureau.
The only company that fit this criteria was Regal Assets.
I checked other gold ira custodians but they always had complaints lodged against them within the past 12 months, some even as recent as 30 days from this writing!
That makes me feel *very* uncomfortable since I want to work with someone who actually cares about my future and family as much as I do. I suspect you may feel the same way about yours, which you should!
If you want to visit the homepage of Regal Assets, you can click here.
Alternatively you can call them up to speak with a specialist toll-free at 1-855-682-1084. They specialize in old 401k’s and ira’s into gold and silver, but they also sell bullion at just above spot price (to save you money). The combination of cheap prices and genuine interest in my family was really appealing to me. You can fill out the form on the right hand or below to get your complimentary gold investment kit. It will fill in some details that I didn’t have room to fit onto this page (for the sake of saving your time).
I thank you for taking the time to learn how to invest in gold for your retirement and wish you the best of luck on whatever you decide to do.