As a future retiree, it’s your job to decide the best course of action when investing for your retirement future. Like most people, you intend to live comfortable and secure in your golden years. But, choosing the right investments now while you’re young is the only way to secure a bright and healthy financial future.
To help you decide, we’ll took thoroughly at both options and present our opinions. Whether you choose to invest in a gold ETF or a precious metals IRA is up to you. Just know that one investment vehicle is far superior to the other and we’ll shed some light on this topic right now.
The Gold ETF: An Investment Wrought with Hidden Dangers
Although gold ETFs are incredibly popular right now, this investment vehicle doesn’t hold a candle to the gold IRA as far as long-term retirement investment strategies are concerned.
Sure, if you happen to get lucky and time the market correctly, you could quickly buy and sell gold ETF shares and make a couple of bucks. But as far as long-term investments go, this choice is dangerous and it could seriously damage your financial future.
Plus, ETFs work differently than typical stock investments. The most popular ETF in this space is GLD. Did you know that GLD trades at three times the market value of physical gold? This means that your investment is going to move three times as fast.
So, if things are going great you’re going to make three times more on your investment. But if gold happens to slip in value, you’ll lose three times your investment because of the volatile nature of the investment. You could potentially lose a large chunk of your investment quickly if you aren’t paying attention.
And another thing, let’s say you own 1000 shares of GLD and you want to take physical delivery of the gold currently backing the shares. Guess what? You have to own 100,000 shares or more to be eligible to receive physical delivery. So ultimately, unless you have a monstrous amount of GLD shares, you basically own numbers on a computer screen, or paper stock certificates at best.
Last but certainly not least, the value of GLD slowly erodes over time. Why? It erodes to compensate the ETF managers. They charge their shareholders an annual fee of 0.4% to compensate the managers of the ETF.
Although it’s a relatively slow moving process, it still reduces the amount of available gold ounces in the fund, which makes ETF investing an inefficient vehicle. Instead, take some time to learn about investing in a gold IRA. And remember to choose your custodian wisely, because it could mean the difference between a positive or negative experience and we want you to be healthy, wealthy, and wise.
The Gold IRA: A Superior Retirement Investment Vehicle
A self-directed gold IRA is the best option for investing in precious metals. Owning physical gold means you own a tangible physical asset that you can hold in the palm of your hand. It isn’t going to disappear on you anytime soon unless you lose it, and the overall value remains stable while heading in a positive upward direction.
For starters, one of the biggest benefits of owning physical gold is that it’s an actual form of currency accepted throughout the world. So, if turmoil strikes out of nowhere and the world suddenly begins to experience major unrest and upheaval, your physical gold will take you a heck of a lot further than a useless paper investment backed by a government that may or may not exist any longer.
Next, gold is portable and liquid. If you ever need to sell any of your gold in a pinch, you can put it in your pocket and physically hand-deliver it to your buyer.
It’s also a highly liquid asset. What does this mean? Simply put, it means that gold bullion dealers all over the world will recognize your gold investment. They will have no problem buying it from you at market value.
It’s very easy to sell gold if you feel so inclined. You can go to a pawn shop, a local coin shop, or even sell it to an online dealer or maybe even a private party. You can use it to trade for goods or sell it for cash. It’s also an investment that’s easily transferable to other currencies if that’s what you desire.
Third, it’s very simple to store precious metals and the costs are minimal at best. After you discover a top-quality precious metals custodian like the one we recommend, you’ll only have to pay minimal vaulting charges and custodian fees. They will even pay for your first year’s fees for free.
A fourth reason for opening a gold IRA is you do not need specialized knowledge or expertise to buy gold. This alone makes this investment an excellent choice.
Think about other investment types like baseball cards, stamps, or buying diamonds. Each one of these areas requires specialized knowledge and skills in order to make money as a collector.
Buying gold, on the other hand, could require specialized knowledge if you approach it as a collector. But as an investor, none of this is needed or necessary.
You aren’t speculating as to whether or not a particular rare coin will rise in value. The gold itself is the valuable asset whether it was minted yesterday, today, or hundreds of years ago.
The Gold ETF vs. The Gold IRA: Final Thoughts
Future retirees like you recognize the value of investing in precious metals for their retirement. But they’ve struggled to determine the best investment vehicle for some time now.
We know that investing in a gold ETF for the long-term isn’t the best strategy. The investment erodes over time, it’s incredibly volatile and dangerous, and you need a humongous investment of 100,000 shares or more to obtain physical delivery of the precious metal.
On the other hand, we’ve learned that precious metals IRA investing is the far superior choice. When buying gold, you are literally buying a physical asset that acts as an accepted currency all around the world. It’s a highly liquid asset so it’s easy to sell, it doesn’t require any special knowledge or skills to purchase unless you’re a collector, and the storage and custodial fees are minimal at best.
Hands down, investing in a self-directed gold IRA is the clear winner. So do yourself a favor and spend some time learning about precious metals IRA investing.
Even more important, make sure you choose a gold IRA custodian that you can trust. By putting this knowledge to work, you’ll create a secure and bright retirement future for you and your loved ones.
Do you have any questions on how the gold IRA is a superior choice to the gold ETF? Ask below!