Some people want you to believe that the only way to make money buying gold is through purchasing rare coins. Guess what? These individuals obviously have an agenda because nothing could be further from the truth. It’s certainly possible to make money from rare and collectible coins. But it’s actually easier to invest in precious metals like gold, silver, platinum, and palladium for their intrinsic value.
Getting back to the question at hand…
Is it really worth it to invest in rare gold coins? It’s not the worst idea if you’re worth eight or nine figures and you have plenty of money lying around. But if you’re a regular everyday person looking to grow their retirement account, you need to open a gold IRA.
You don’t have to take my word for it. I’m going to tell you about three lies that people spread about rare gold coins. These lies have permeated our culture so much that people actually believe them. But when it comes down to the truth, the information I’m about to share is nothing but an absurd fiction.
Are you ready to find out why it’s foolish to buy rare gold coins? Stick around to learn the truth. After I’m finished, I’ll tell you about opening a precious metals IRA and why I feel it’s the superior option.
Sound good? Keep reading to discover the truth buried between the lies.
Rare Gold Coin Lie #1: The US Government Will Not Confiscate Rare Gold Coins
Some foolish investors believe the US government wouldn’t force them to hand in their gold via Executive Order. They make this claim because of what happened during the Great Depression. President Roosevelt mandated that all Americans hand in their gold coins, gold bullion, and gold certificates by May 1, 1933.
At the time, he wanted every American that had more than 5 ounces of gold to turn it in to the United States Federal Reserve bank. Why? He was discouraging people from hoarding gold and turned it into a crime.
But here’s where things got interesting…
During this unscrupulous seizure, President Roosevelt created an exception to the rule. He said that truly rare and collectible gold coins were off-limits. About a month later, FDR dropped the value of the US dollar by 50%. He also reset the gold price to $35 per ounce during the same fell swoop.
How does this affect us today? Two federal laws were passed during the 20th century that made President Roosevelt’s declaration null and void. In the early 1900s, and again in the 1970s, the government declared they can seize any private asset they want. Even rare and collectible gold coins.
Odds are against the US government actually seizing rare gold coins. But the fact that so many huckster numismatic salespersons claim this is the truth really makes me angry. They have no right deceiving the public this way and it has to stop.
The best way to invest in gold is to open a precious metals IRA. Take time to learn about investing in IRA approved gold and other precious metals. You can read about the chief online companies in this industry by checking out our top 10 list and reviews.
Rare Gold Coin Lie #2: You Don’t Have To Report the Sale of Rare Gold Coins or Pay Capital Gains Taxes
Is this a joke? Or are you crazy enough to fall for this insane scam? How often does the IRS allow anyone to get away with not paying capital gains taxes? It almost never happens and you’re not going to get away with it too often.
But there are a few situations. The biggest exceptions include:
- Purchases that use more than $10,000 in cash
- The sale of extremely large silver and gold bars
- Selling 25 ounces or greater of 1 ounce foreign minted gold coins
More often than not, collectors aren’t necessarily going to be selling such high dollar assets. And when they do, the transaction will not typically take place with $10,000 in cash to make the purchase.
In every other situation, the salesperson will forget to tell you if you sell your rare coin on the open market, you will need to report this on your tax return. The IRS will expect you to pay capital gains tax on your windfall. And it doesn’t matter how large or small it happens to be. They want their money and they expect you to report all sales. And they expect you to pay all capital gains tax in every situation except the rare few examples above.
You’re much better off investing in a precious metals IRA. Why? In a self-directed IRA, you pay taxes in advance. Every time you deposit money into the account, you’ve already paid taxes on it. So everything that you earn within the self-directed IRA account is tax-free. But this is only true if you don’t take a distribution before you reach 59 ½ years old. Otherwise you’ll have to pay taxes and penalties.
Rare Gold Coin Lie #3: Rare Coins Have Better Potential for Price Appreciation When Compared to Gold Bullion
This lie really gets my goat because the numismatic salespeople want you to avoid opening a gold IRA. They are working hard to convince you that it’s a bad deal. When in actuality, investing in rare gold coins is the biggest loser of the bunch.
Think about this for a second…
In the year 2000, gold bullion was worth $272.65 per ounce. Today gold bullion is worth $1728.35 per ounce. Over the last 20 years, that’s nearly 505% in returns. How cool is that?
It’s possible that you may find the proverbial diamond in the rough. But the odds are stacked against you. The odds that you’ll find a rare gold coin that suddenly gains value is about the same as hitting the lotto.
But here’s the other side of the virtual gold coin. If you purchased gold bullion in 2000 and held it for 20 years you’d have made big bucks. Like 505% big! And if you invested enough at that time, you would be a multimillionaire many times over.
And if you did it in a tax-free retirement account (a gold IRA) you’d keep the profits all to yourself!
How’s the lie treating you now? Do you feel like a genius because you bought a “rare” gold coin that’s barely worth anything? Or are you jumping for joy because your gold investments are now worth more than your house?
It’s time to stop hoping and praying that you hit the rare coin lotto. It’s time to get serious about your retirement. And it’s time to protect your retirement portfolio against a tough economic environment created by the coronavirus.
Are you ready to discover why opening a gold IRA is the intelligent choice? Keep reading to learn how to separate the truth from the lies.
The Benefits of Opening a Gold IRA Account
Investing in gold is a great idea. And it wouldn’t hurt your retirement account a bit if you invested in silver, platinum, or palladium either. But you have to invest the right way. Buying rare gold coins, and I use the term rare loosely, and praying for a miracle is stupid.
Buying a valuable asset and holding it in your retirement account over the course of decades as it accrues value is brilliant. Need I say more? Yes, in fact I will.
The biggest benefits of a gold IRA account include:
- Portfolio diversification – in early February 2020 through mid-March 2020, your retirement portfolio took a massive hit. You likely lost about 45% to 50% of the value. At the same time, the value of gold was steadily rising. It’s the best hedge against economic inflation, recessions, and other financial turmoil that the world has to offer. Ignoring this type of diversification while the coronavirus is still very active is insane. You need to protect yourself and your nest egg. Buying precious metals in a gold IRA account is the perfect way to preserve your wealth.
- Immense growth potential – as I said earlier, the value of gold has risen by 505% since the year 2000. And that was during two of the biggest bear markets the world has ever seen. How much will the value of gold grow from 2020 to 2040? Will it grow another 500%? Or will it grow even higher during these stressful economic times? All I know is the growth potential is there. If you look at the value of gold throughout history, you’ll see what I mean.
It’s time to take matters into your own hands. It’s time to ignore the idiots trying to convince you that rare gold coins are a good idea. And it’s time to begin investing in a precious metals IRA sooner rather than later. Read about our favorite gold IRA companies on our top 10 review page. While you’re there, learn about Regal Assets and click the link to sign up for their free investor’s kit.