Some investors find themselves on the fence regarding precious metals. They believe it’s a great idea to invest in gold and silver, but they often don’t know where to begin.
You might have questions like: “Should I buy precious metals stocks?” Or you might be thinking, “Should I buy physical gold?” Or you may even wonder, “Should I buy gold or silver ETFs?”
No matter what, we only recommend investing in physical precious metals. But to take it a step further, we recommend investing as part of your gold IRA. The tax advantages of an IRA mean you’ll make even greater returns on your gold and silver investments.
So, we’ll take some time to go over the pros and cons of investing in precious metals right now. We’ll tell you why we believe it’s an excellent idea to secure your retirement future. We’ll even share the cons of investing in precious metals the wrong way, which is possible if you aren’t careful.
The Pros of Investing in Gold & Silver (Precious Metals)
As you’ll learn, there are many wide-ranging reasons to buy physical gold and silver for your precious metals IRA. Some of these advantages are impossible to obtain with any other investment type. So, you should find these benefits useful and enticing.
Pay attention to the following:
- Precious metals are tangible assets – most investments these days take place on a computer screen. It’s rare to invest in something that you can hold in the palm of your hand. But that’s exactly what you’ll get when buying physical gold and silver. If treated correctly, your precious metals will never get destroyed in a fire, harmed by water, or lost or stolen. You can’t say the same for paper investments like stock certificates, although they’re typically viewed on a computer screen.
- Gold investments outperform the stock market – many believe this isn’t true, but they are sadly mistaken. Plenty of today’s mainstream advisors believe the stock market outperforms gold. That’s not very accurate though. In fact, over the last 21 years gold has outperformed bonds and stocks by a wide margin. Even better, gold has risen 337%. During this timeframe, the Dow Jones rose by 182%, the S&P 500 rose by 148%, and bonds rose by 69%. Clearly, investing in physical gold in a precious metals IRA was obviously the more fruitful choice.
- You can’t hack or erase physical precious metals – but you can’t say the same thing for digital investments. In fact, hackers are constantly on the prowl to digitally steal money and investments. Even worse, if the online world suddenly went away, your stock investments would disappear without a trace. Physical gold, on the other hand, will withstand the test of time. It’s been around for thousands of years and it isn’t going to disappear anytime soon.
- Precious metals investments are private and confidential – as you know, privacy and confidentiality are at a premium these days. In the digital world, just about anyone can access your information at any time whether you know it or not. But owning physical gold can be the most private and confidential experience in the world. Nobody ever has to know you have a bounty of gold and silver safely tucked away in your gold IRA.
- Buying precious metals doesn’t require specialized knowledge – this is great for casual working class investors. On the other hand, investing in diamonds requires intense specialized skills. You need to know how to determine cut, clarity, color, and authenticity. The same holds true for investing in art like paintings, sculptures, comic books, and many other collectible investments. But buying gold bullion as part of your gold IRA doesn’t require any training or special skills at all.
- Precious metals are a portable investment – you can stick gold coins in your pocket and take them with you everywhere. The same holds true for silver currency. You’re better off keeping them safe and sound with your gold IRA custodian, but at least the option is available. In fact, if you plan to travel with precious metals, you can easily cross borders without any problem at all.
As you can see, there are many reasons to invest in physical precious metals. But to play devil’s advocate, we’ll continue taking a look at the pros and cons of precious metals. We’ll now dive into some of the cons of this investment.
The Cons of Investing in Gold & Silver (Precious Metals)
As much as we love buying gold and silver, there’s a wrong and right way to invest in precious metals. All of the downside risk becomes a problem when you invest the wrong way. With that disclaimer out of the way, the cons include:
- Investing in precious metals by digital means – some investors believe it’s safe to buy gold ETFs and stocks. We vehemently disagree with this sentiment. In fact, we know that buying gold and silver stocks and ETFs is a terribly risky proposition. In particular, mining stocks are scary because you might choose the wrong company. And before you know it, your investment is worthless because the company underperformed.
- Buying physical precious metals without tax advantages – this happens when the investor fails to open a gold IRA. Owning physical precious metals is better than not owning any at all. But buying them and stuffing them in your closet is a foolish way to invest. You need to contact a reputable precious metals IRA company like Regal Assets and open an account right away. The tax advantages alone make this an incredible investment and an exciting way to secure your retirement future.
Clearly, we believe in the power of investing in precious metals. But we don’t want you buying gold stocks, ETFs, or physical precious metals outside of your retirement account. These investments are potentially risky, dangerous, and foolish to say the least.
So take some time to look into opening a precious metals IRA. There are many great precious metals IRA companies to choose from so do your research.
Our favorite is Regal Assets. You can contact them today to get a free investor’s kit, a free DVD, and a free 10 year anniversary silver coin.
Do you have any questions about the pros and cons of investing in precious metals? Ask below!