Who says? They are pretty high now historically
I wanted a self-directed IRA to finance my house flipping. Advisors said no.
The only way I’d invest in PM’s is physical PM’s. i.e. something I put in a safe deposit box. I think the rest is fake.
Precious metals as part of a portfolio is cool.
I wouldn’t put all eggs in one basket whether it be stock index funds, bond funds/bonds, cash and gold or whatever.
You can set up an IRA and have diversified holdings within that IRA.
Dollar cost average 10-20% of your salary into an IRA, 401K or investment account, leave it alone and don’t touch it for 30 years or more. Voila. Real simple.
You can outpace inflation by having your IRA spread out into many mutual funds of many asset classes (diversify). I have mine in 40+ mutual funds, with 3/4ths of them in equity mutual funds (stocks) and the other 1/4th in mutual funds of bonds, treasuries, and money markets.
Then when it's time to withdraw on one to live off of (either 4% of your portfolio annually, or 1/3rd of 1% monthly) I withdraw from whichever funds have the highest balance (sell high). And at the end of the year, figure out how much your taxable income will be after deductions (your AGI) and how much more taxable income you can have without going into a higher tax bracket. That's the amount you convert some of your IRA money into a Roth IRA (again, spread out across many asset classes). From then on that amount grows tax free.
Are you sure you are okay with only a derivative of your money? Why not have actual real money. And thing other than physical in your hand silver or gold is not real money, just a derivative.
| Ticker | Metal | Structure | Expense ratio |
|---|---|---|---|
| IAUM | Gold | Physically-backed trust | 0.09 % |
| GLDM | Gold | Physically-backed trust | 0.10 % |
| SIVR | Silver | Physically-backed trust | 0.30 % |
How about a gold mining ETF like GDX?
Buy GLD and SLV etfs in your investment portfolio. No need to do PM IRA. Can also buy the miner ETFs or individual companies. ABX, FCX, etc.
Everything in balance/moderation
It can/should be part of any balanced portfolio, but as with any asset class, not an overwhelming majority.
Like other asset classes, unless you are an industry insider who knows the timing, its better to dollar cost average into a position.
In general, look for things now that, on a long-term basis, are relatively cheap to other assets.
For example, Platinum is at 50 year lows vs. the price of gold. Besides the Covid 2020 collapse, the same is true for oil. Maybe start there, instead of gold.
“””but the fees seem high for precious metal IRAs.”””
If you concerned about fees, then buy a few shares of GLD or SLV to get your feet wet.
Unless you are planning to buy millions of dollars of gold and silver, I would not worry about buying a few shares of GLD or SLV ETF’s.
You may encounter higher tax rates (28% vs 20%, for example) for investments based on precious metals, if I remember a recent article correctly...
Not a fan of precious metals... I think it’s way over valued.
Go to YouTube and look for Lynette Zang. She will answer any question you have regarding gold and silver without you even having to ask it.
Most custodians of conventional IRAs won’t allow you to own physical gold in the tax-advantaged account, but it’s a whole different story with a self-directed IRA (SDIRA). As the name implies, SDIRAs give you more control over what type of assets you can own, including real estate and precious metals. One potential drawback with gold IRAs is the initial purchase requirement fairly high.
I wouldn’t have the slightest idea and wouldn’t listen to anyone claiming to. IRAs are heavily controlled by the govt, that’s enough.
Kirk Elliott talks about this, has been interviewed on the podcast And We Know.
I’ve considered looking into what he offers.
An IRA is a retirement account. When you are young, it can be more speculative than as you get closer to retirement age.
However, it should always have some diversity to it. That is because different sectors of the economy and the value of the stocks that serve those sectors go up and down. What you want to have in retirement accounts are a number of different stocks, ETF sectors, or mutual funds, including foreign and bond funds.
Gold is OK, but is not without costs if you want to sell it at some future point in time. It as all commodities should not be a principle component of your retirement account.