As a casual investor, you may not know what to make of all the news regarding gold investing. One analyst says it’s time to sell while another says this is the best time to buy. Some are screaming, “go short!”; others are screaming, “go long!” So what do we recommend?

We recommend that you relax and look at a gold IRA. All of that other talk is for institutional and professional investors who buy and sell in large quantities every day. They are the ones worried about daily losses and gains. As a casual investor, your focus is on the long haul.

The long haul is what the gold IRA is all about. It is an investment vehicle designed to generate income for your retirement years which, if you have been doing your homework, should still be quite a ways off. If you are 50 and have not yet started investing, you need to think about other things.

How It Works

A gold IRA is fundamentally no different from a cash IRA except that you are purchasing gold rather than paper securities. With your current cash IRA, you might own stock in a handful of companies, so many shares of a mutual fund, and even some bonds and other types of securities. Nevertheless, in reality they are just pieces of paper that represent cash value.

A gold IRA is different inasmuch as gold is tangible. When your IRA custodian invests on your behalf, he is actually purchasing a product you can hold in your hands. Granted, he will not be sending you gold coins or bullion in the mail, but you will own real, tangible gold. You will have two choices:

Physical Gold – The first option is to purchase physical gold, which will be held in reserve, on your behalf, at one of the federal government’s storage facilities. When you reach retirement age that gold will be shipped directly to you by your custodian.
Gold Certificate – The second option is to purchase gold from a company rather than the government. In this case, you are issued a certificate that sets aside a certain amount of that company’s gold for you. The company will send you the physical gold when you reach retirement age.
Transfer or Rollover

In order to set up a gold IRA using your current cash IRA, you will need to either conduct a transfer or a rollover. A transfer is the quickest and easiest way to get it done.

When you transfer a cash IRA you are telling your current custodian to liquidate your investments and send a check to your new gold custodian. That custodian then takes your funds and uses them to purchase gold. No money ever passes directly through your hands.

As for a rollover, it works the same as any other IRA rollover. You cash out your account, receive a check from your custodian, then turn around and send that money to your new gold custodian for reinvestment. However, you must reinvest within the government’s 60-day window or face pretty stiff penalties and fees.

Steady As She Goes

The key to making the gold IRA work for you is to adopt a “steady as she goes” mentality. In other words, do not get caught up in all of the short-term hype. Despite the losses gold has suffered this year, they are the first losses in more than 12 years. What’s more, gold historically increases in value over the long haul.

You can become a gold investor today by rolling over your cash IRA into a new gold IRA. A gold investment is a great way to add stability to your retirement fund that will allow you to enjoy the lifestyle you want during those golden years. Call us today to get started.