When it comes to retirement investments, many financial experts warn that gold and silver can be too risky, especially for retirees who need income-generating investments. However, for some investors, gold can be an attractive asset. It offers an additional source of diversification and is seen as a hedge against volatility. Buying physical gold or silver for retirement may seem like an unnecessary expense, but it can save you a lot in the long run.The benefits of investing in physical precious metals for retirement are strong.
Once you turn 72, you'll be required to take the Minimum Required Distributions (RMD) of a traditional gold IRA (though not a Roth). These investments are available in a normal brokerage IRA, which means you won't have to go through the extra work and costs of setting up a self-directed gold IRA.Before opening a gold IRA, keep in mind that it's not the only way to invest in gold with your retirement funds. This means that if you want to use the money in these accounts to buy gold and silver, you'll need to be able to get at least six to eight figures as a down payment for gold and silver only. Having gold means you'll also need a vault to store it, insurance for gold bars, and you'll also have to navigate the physical delivery of your investment.
To do so, you need an individual gold retirement account, commonly known as a gold IRA, although it comes with its own additional rules to follow and fees to pay.When considering investing in gold, it's important to remember that buying gold jewelry as an investment can be more difficult than buying gold bars or coins because of its measure of value. However, it can still be a worthwhile investment if done correctly. Investment gold is usually purchased from large traders, and this gives you the best chance to liquidate gold if necessary. During his tenure as director of the Mint, Moy says there was little demand for gold IRAs because they involved a very complicated transaction that only the most persistent investor was willing to pursue.Gold IRAs are usually defined as “alternative investments”, meaning that they are not traded on a public exchange and require special experience to value them.
For a gold IRA, you need a broker to buy the gold and a custodian to create and manage the account.