Gold prices may hit $1,350 by year end, says top forecaster

This article first appeared on livemint.com and was written by Eddie Van Der Walt, Bloomberg’s London-based gold reporter. and Ranjeetha Pakiam Bloomberg report based in Singapore

Gold will likely bounce back by year-end, reaching a high of $1,350 an ounce in the fourth quarter, said Daniela Corsini. (a Milan-based analyst at Intesa Sanpaolo SpA)

London/ Singapore: Gold prices will end the year higher, spurred by faster inflation and political tensions in Russia, Syria and North Korea, according to Intesa Sanpaolo SpA, the best forecaster for the metal last quarter.

Prices could take a v-shaped path this year, with a swoon coming mid-year as the Federal Reserve raises US interest rates, said Daniela Corsini, an analyst at the bank. Gold will likely bounce back by year-end, reaching a high of $1,350 an ounce in the fourth quarter, she predicted.

That would leave bullion at the highest level since September. Prices have risen 12% this year, supported by inflation concerns and a mix of geopolitical worries, including North Korea’s nuclear ambitions and US airstrikes in Syria and Afghanistan.

“Markets will surely remain nervous about this uncertainty,” she said by phone from Milan on Tuesday. “And if economic data in the US remains strong, then gold will regain its role as an inflation hedge.”

Bullion for immediate delivery dropped 0.3% to $1,286.54 an ounce at 12.22 pm in Singapore, according to Bloomberg generic pricing.

Silver could climb to $19 an ounce by year-end, compared with Wednesday’s price of $18.2395 an ounce, according to Corsini. The metal has gained 15% this year.

Platinum and palladium are likely to face pressure from a slowdown in car demand in the US and China, she said. For the physical gold market, India will see strong demand, while speculators in China maintain a preference for equities and other commodities, Corsini predicted.

Demand in India, the second-largest gold market, suffered a blow in 2016 after the government withdrew larger bank notes from circulation.

In Europe, upcoming elections in France, Germany, and the UK will provide an impetus for gold buying.

The Indian “impact of the demonetisation scheme has run its course, and we had very strong imports in February and March,” she said. “ETF demand will be correlated with safe-haven demand in Europe.”

 

The post Gold prices may hit $1,350 by year end, says top forecaster appeared first on Precious Metals Investment Guide.

source http://www.preciousmetalsinvestmentguide.com/gold-prices-may-hit-1350-year-end-says-top-forecaster/

Owner of Worlds Largest Hedge Fund Says Invest in Precious Metals

Billionaire Ray Dalio warns investors “who don’t own gold don’t know history or economics…”

Gold may have taken a dive at the end of last year, but since the start of this year, the price of gold has rallied 10%. With the Federal Reserve increasing rates twice since Donald Trump became President, gold has increased in value.

Tom Beck, the senior editor at Portfolio Wealth Global, reported a few days ago how the owner of the world’s largest hedge fund, Ray Dalio of Bridgewater Associates is turning to precious metals investment along with industrial commodities right now.

Mr. Beck said in his recent article about Dalio

“At Portfolio Wealth Global, we have been studying Ray Dalio’s investment returns going back all the way to the 1970s, and the one thing he always gets right is economic slowdown.

In fact, his fund performs better when the market is correcting.

Dalio is famous for saying that Buffett is making a huge mistake by not owning gold, and he remarked that investors “who don’t own gold don’t know history or economics.”
At the moment, the “Trump honeymoon” is losing serious ground, with the S&P 500 having its worst one-day performance in 38 weeks a couple of days ago.”

 

With inflation only breaking 2% once last year in December, maintaining an average throughout 2016 of 1.3%, in 2017 we are already seeing inflation increase twice in the first two months, going up from 2.1 to 2.7, the highest it as been for five years since January 2012. Because of the rise in inflation, we are also seeing real interest rates staying close to negative.

Beck goes on to say…

“Going back to 1976, you can see a direct correlation between real interest rates and precious metals performance, but the interesting phenomenon, which is now starting to catch the attention of major hedge funds, is the fact that while real rates stay negative, stocks are affected negatively by rising rates.

Remember, every time countries have put up barriers between them and the rest of the world it sparked a short-term excitement, followed by long-term systemic decline.

This is what Ray Dalio sees now, and that’s a big driver for gold prices.”

 

We have talked here on this site a few times how precious metals and in particular gold are a good way to not only diversify your portfolio but to protect your investment against inflation and negative returns on stock investments and any other market turmoil.

And it is on that point that Beck continues to make the point

“What’s truly important to realize is that gold and silver stocks are, at this point, like a spring ready to shoot up, but the catalyst would be gold $1,300 and silver $19.00.

Once this confirmation occurs, you will see fireworks.

That’s why Dalio and others are turning to gold and industrial commodities right now.”

 

Dalio does seem to have a knack of being able to predict how markets are going to react to an individual situation. In 2007 he correctly predicted the housing market collapse, which as we know led to the fall of the financial market in 2008.

As recently as last month (February 2017) Dalio predicted a bleak future of the markets. Now history tells us that when the markets perform badly, gold, in particular, produces a good return on investment.

With the US currently sustaining $20 trillion plus of debt, something is going have to give soon, and therefore Dalio’s warning should be heeded, along with his solution – precious metals investment.

If you are considering investing in precious metals, check out the information we provide on the various precious metals investment companies.

The post Owner of Worlds Largest Hedge Fund Says Invest in Precious Metals appeared first on Precious Metals Investment Guide.

source http://www.preciousmetalsinvestmentguide.com/owner-worlds-largest-hedge-fund-says-invest-precious-metals/

A Roth IRA Could Be a Worse Choice Than You Think

This article first appeared on  Tim Money website written by Walter Updegrave

Is a traditional IRA or a Roth IRA better for you? That’s a question that retirement savers and financial pros perennially noodle over.

The accounts’ tax treatments are the mirror images of each other: With a traditional IRA, if you qualify for a deduction, you get a tax break on your contributions today and owe tax on the dollars you pull out down the road. With the Roth, you forego the tax benefit now to collect in the form of tax-free income in later life.

A recent NerdWallet study concluded that most people are likely to come away with more money after taxes in retirement if they contribute the maximum $5,500 a year to a Roth IRA rather than putting that same amount into a traditional IRA. But before you start rushing to a Roth, you need to understand why even though Roths do come out ahead in many cases, they can also fall behind in many others.

Let’s start with the part of the study where NerdWallet says “the Roth IRA really outshines the traditional IRA” and shows the Roth coming out ahead in a number of cases by an extra $184,000 in after-tax savings after 30 years. To arrive at that figure, NerdWallet assumes the maximum allowable annual contribution of $5,500 a year is made to both types of IRA for 30 years. It also assumes those contributions earn an investment return of 6% a year and that the account owner ends up paying a tax rate of 40% in retirement.

Do the arithmetic, and you’ll find that after 30 years both the traditional IRA and the Roth account would have a balance of just under $461,000. But the traditional IRA would also have a tax liability of about $184,000 (40% of $461,000), thus giving the Roth that impressive $184,000 edge.

Tilting the Playing Field

This analysis gets to that huge advantage by tilting the playing field in the Roth IRA’s favor in two ways. One is that lofty tax rate, which takes such a big bite out of the dollars accumulated in the traditional IRA.

Second, and more important is that even though the contributions to the two accounts are the same, they aren’t really equal. Why is that? Well, assuming you qualify for the traditional IRA’s tax deduction, you need only $5,500 of pay before taxes to make that maximum contribution. With the Roth, contributions are made in after-tax dollars. Which means you have to part with more than $5,500 in pretax dollars to make a $5,500 Roth contribution.

If you’re in, say, the 25% tax bracket at the time you make the Roth contribution, you have to give up $7,333 before taxes to make an after-tax contribution of $5,500 ($7,333 minus tax of $1,833 at a 25% rate leaves $5,500 after taxes). If you’re in the 35% bracket, you’ve got to part with even more—$8,462 before taxes—to make the $5,500 contribution.

In short, in this scenario you’re effectively contributing less of your pay to the traditional IRA than to the Roth. So it’s hardly a surprise that the Roth IRA whips the traditional IRA every time.

The math is very different if you assume that the amount invested in the traditional IRA and Roth IRA are equivalent after taking taxes into account—for example, $3,000 after-tax in the Roth and the pretax equivalent at a 25% tax rate of $4,000 in the traditional IRA. In that case, after 30 years the two accounts would have the same after-tax balance, assuming tax rates don’t change.

A More Complete Comparison

In an another analysis in its study, NerdWallet makes what I consider a more accurate comparison of Roth and traditional IRAs when making the maximum contribution to a Roth. They start with the same amount of pretax dollars for both accounts. Of course, if you’re investing the maximum $5,500 in a Roth IRA, it’s impossible to invest the pretax equivalent of that amount in a traditional IRA, as you would exceed the IRA annual contribution limit. So to put the two options on more equal footing, you have to figure that the traditional-IRA saver is also putting additional dollars into a separate investment account that is subject to taxes.

Remember that for a person in the 25% bracket, the pretax equivalent of a $5,500 Roth contribution is $7,333, or $1,833 above the $5,500 maximum. To keep the comparison apples to apples, this analysis assumes that after investing $5,500 in a traditional IRA, that person would also invest $1,375 in a taxable side account. That $1,375 represents the $1,833 overage, reduced by $458 in tax at the 25% rate.

When the NerdWallet study crunches the numbers this way, the Roth IRA still wins in many cases. But its margin of victory tends to be smaller and, more importantly, in many other scenarios the traditional IRA plus taxable account comes out ahead. In other words, when you make a fairer comparison, the Roth IRA isn’t the slam dunk it seemed to be.

In weighing a Roth vs. traditional IRA, one key thing to keep in mind is the importance of taxes and tax rates. Generally, if you end up in a higher tax bracket in retirement than when you made the contribution, you’ll have more after-tax dollars with the Roth IRA. You’ll have paid tax at a lower rate when you put your money into the account and avoided the higher tax rate at withdrawal, since qualified Roth withdrawals aren’t taxed. Conversely, if you drop into a lower tax rate at retirement, that favors a traditional IRA, as you’ll have avoided taxes on your traditional IRA contribution when your tax rate was higher and you’ll have paid taxes at a lower rate at withdrawal.

But even in cases where someone drops to a lower tax rate in retirement, it’s still possible for the Roth to end up producing a larger after-tax balance than the traditional IRA plus taxable account. That’s not because of some Roth magic. It’s because of taxes on investment gains in the taxable account.

While investment gains inside an IRA compound without the drag of taxes, you must pay taxes on gains in the side account. Which means the money invested there—the $1,375 in the example above—will grow at a lower after-tax rate than money in the Roth IRA (assuming the same rate of return before taxes). And that difference in returns—call it “tax drag” in the taxable account—gives the Roth IRA a bit of an edge over the combination of a traditional IRA and a taxable account.

So Many Variables

The question is whether that edge is big enough for the Roth IRA still to generate a larger balance even if you slip into a lower tax rate in retirement. The answer depends on a number of factors, including how much your tax rate drops and how efficiently you invest to minimize the tax on gains in your taxable account.

Opinions can vary about how best to compare contributing to a Roth IRA vs a traditional one. Jonathan Todd, a co-author of the NerdWallet study, allows that assuming the maximum contribution of $5,500 in both the Roth IRA and traditional IRA without also investing the traditional IRA’s tax savings effectively amounts to devoting more of your income to the Roth. But he also notes that “most people don’t take the extra step and invest the tax savings.”

More from RealDealRetirement.com: What Size Nest Egg Do You Need For Your Retirement?

Fair enough. But even if you don’t invest the tax savings, that money doesn’t disappear. It still has economic value and can improve a household’s wellbeing. And, indeed, the study acknowledges this, noting that “those tax savings can be a valuable addition to an emergency fund, or they can help pay down debt or loosen monthly cash flow.” I couldn’t agree more. In fact, I’d add that those savings could be used in plenty of other of productive ways as well, including paying household bills, accumulating a down payment for a home, investing in a child’s education or simply improving a family’s living standard. Which is why I think any analysis that essentially ignores the value of those savings—even if it shows the Roth IRA coming on top in every scenario often by very impressive margins—isn’t very meaningful.

Ultimately, what I take away from this study is that for many, if not most, people, it’s difficult to really know whether a Roth IRA or traditional IRA will end up being the superior choice. With uncertainty both about your future income and future tax rules, it’s impossible to know the tax rate you’ll owe when you withdraw money from a traditional IRA many years down the road. Which is why I think it’s a good idea for most people to consider hedging their bets by having some money in both a traditional IRA and/or 401(k) as well as in a Roth IRA and/or Roth 401(k) account. That will allow you to diversify your tax exposure, so to speak, rather than making an all-or-nothing bet with all of your retirement savings on a particular tax scenario playing out. Having the ability to draw money from both types of accounts can also give you more leeway in managing withdrawals and possibly lowering your tax bill in retirement.

Bottom line: The prospect of a big tax-free account balance in retirement may make a Roth IRA seem like the obvious choice. But that doesn’t mean it’s necessarily the right one.

Walter Updegrave is the editor of RealDealRetirement.com. If you have a question on retirement or investing that you would like Walter to answer online, send it to him at walter@realdealretirement.com. Follow Walter on Twitter @RealDealRetire.

The post A Roth IRA Could Be a Worse Choice Than You Think appeared first on Precious Metals Investment Guide.

source http://www.preciousmetalsinvestmentguide.com/roth-ira-worse-choice-think/

Gold IRA Rollover

There is only one difference between a standard individual retirement account and a gold IRA, and that is the latter only has gold in it.Other than that it works in the same way as a regular account.

If you already have an IRA or 401(k) in place, why would you want to consider a gold ira? We have talked on other pages on this site about the importance of diversification when it comes to your investments, and especially your retirement fund. You will like most other people, want to ensure you get the maximum return out of your retirement fund.  Therefore rather than place all of your investment eggs in one basket which can be risky in the long term, seeking sound financial advice from a professional on how to diversify your accounts so as to minimize loss and increase return, is important.

One of those options open to you is a gold IRA rollover. As we have already mentioned if you have an IRA or even a 401(k) and they can be a Roth or a regular type, you can roll over part or all of your accounts into a gold ira, hence the term 'gold ira rollover.'

There are some key benefits and features of setting up a gold ira rollover. The main one relates to the tax implications. If you are moving all or part of an existing IRA or 401(k) into a gold ira, then there are no tax penalties, because you are rolling over an existing account. One important note for your consideration is that if you have an old 401(k) from a previous employer, it is a lot easier to roll that over into your gold ira than it is if you have a current 401(k) with an existing employer. It is not impossible to do the latter, and this would be something you would need to discuss with your gold ira provider if you wish to rollover an existing 401(k) but it certainly is something you need to be aware of in advance.

Another key benefit and feature is the simplicity of the process. The key providers we recommend can transfer your account within 24 hours if you so wish. In fact, they operate within the time frame you desire, so you don't lose out in delays. However please note that you do have a limit of 60 days in which to deposit the funds from your existing ira into your new gold ira, if you take hold of the resources. Failure to carry out this process within the time limit will result in you having to pay a taxable withdrawal penalty of 10%. If you perform a direct custodian-to-custodian transfer, where the money is wire transferred between the two parties, and you don't receive it, then there is not withdrawal penalty.

What Metals Can Go In A Gold IRA?

When it comes to gold coins and bullion the market is awash with options. There are many coins with various designs, weights, purity and value, all ideal for the avid collector. Unfortunately not every gold coin of bullion bar meets with the IRS regulations for what is suitable for placing in a gold ira.

Although we have been speaking primarily about a gold ira, you can if you so chose, set up a precious metals ira, which allows other qualified metals such as silver, platinum, and palladium, to be added to it as well.

Below is a full list of the recommended gold coins and bars allowed in a gold ira. For a complete list of what metals are and are not allowed, see our IRA approved precious metals page.

 

Gold ALlowed In IRA Rollover

IMPORTANT NOTICE: GOLD BULLION & COINS APPROVED BY IRS FOR INVESTMENT IN AN IRA MUST HAVE A PURITY LEVEL OF .995% OR HIGHER

 

AMERICAN GOLD EAGLE COINS	AMERICAN GOLD BUFFALO COINS
AUSTRALIAN GOLD KANGAROO/ NUGGET COINS	AUSTRIAN GOLD PHILHARMONIC COINS
CANADIAN GOLD MAPLE LEAF COINS	CREDIT SUISSE GOLD BARS
JOHNSON MATTHEY GOLD BAR	VALCAMBI GOLD COMBIBAR

 

Important Information For Your Consideration When Choosing A Gold IRA Rollover Provider

Fees: There are in general five types of costs you will need to be aware of when setting up your gold IRA. These are: Fee for opening the account which should be in the region of $50; transaction fee which is paid when you buy your gold and tends to be in the $40 per transaction range; Account maintenance fee which is payable to the custodian you chose. This fee varies from as little as $50 a year to $250 a year; Transfer fee -If you have the funds wired into your new account, this will create a wire transfer fee and depend on your bank. They can cost up to $25. Finally, there is the fee for storage. You can't store the gold for your IRA on your own premise, as this will create tax implications. Therefore, you will need to store your gold at a depository of your choosing, where you can visit at any time if you wish.  The fee for storage is set by the depository, but in general, does tend to range between 0.5% to 1% of the total deposited value.

Whichever company you chose to go with, should, of course, explain these fees in full with you before you begin your gold ira. The costs will vary from provider to provider, and you will see from the table below that we have outlined the top companies and the general fees they charge to help you when you begin talking to them.

The Custodian you chose: You have to use a custodian to set up and manage your gold IRA so picking the right one is important. Many of the providers will either recommend a guardian for you or have a panel for you to chose from. The first thing you will want to check is that the custodian is properly licensed. If they are, then they have the full Internal Revenue Service accreditation to operate on your behalf. Custodian fees vary so check with your provider first before you sign up.

Company	Fees	BBB Rating	BCA Rating	TrustLink	Our Review
Company	Fees	BBB Rating	BCA Rating	TrustLink	Our Review
Regal Assets	First Year Free, then $250 a year	A+ BBB Rating with ZERO complaints in last 3 years (click here to see details)	AAA Rating with ZERO compaints in last 3 years (click here to see details)	4.9/5 stars based on over 900 customer reviews since 2013 (see TrustLink results here)	Check out our Regal Assets review
Cornerstone Bullion	$260 a year plus other fees	A+ Rating with ZERO complaints in last 3 years (click here to see details)	AA Rating with ZERO complaints in the last 3 years (click here to see details)	5/5 stars based on 3 reviews in 2014 (see TrustLink results here)	Check out our Cornerstone Bullion review
Lexi Capital	$60 a year plus other fees	A+ Rating with ZERO complaints in last 3 years (click here to see details)	AA Rating with ZERO complaints in the last 3 years (click here to see details)	5/5 stars based on 3 reviews upto 2014 (see TrustLink results here)	Check out our Lexi Capital review
Apmex	Fees vary depending on investment	A+ Rating with 31 complaints in last 3 years (click here to see details)	AAA Rating with ZERO complaints in the last 3 years (click here to see details)	5/5 stars based on 1 review in 2012 (see TrustLink results here)	Check out our Apmex review
Rosland Capital	Fees vary depending on investment	A+ Rating with 20 complaints in last 3 years (click here to see details)	AAA Rating with 3 complaints in the last 3 years (click here to see details)	4/5 stars based on 64 reviews since 2009 (see TrustLink results here)	Check out our Rosland Capital review
USA Gold	Fees vary depending on investment	A+ Rating with ZERO complaints in last 3 years (click here to see details)	NOT REGISTERED	NOT REGISTERED	Check out our USA Gold review
GoldSilver.com	$300 per year + 5% minimum	Not BBB Accredited but does have 6 complaints in last 3 years (click here to see details)	AAA Rating with 3 complaints in the last 3 years (click here to see details)	4/5 stars based on 3 reviews in 2011 (see TrustLink results here)	Check out our GoldSilver.com review
Monex Deposit Company	$360 a year minimum	A+ Rating with 6 complaints in last 3 years (click here to see details)	AAA Rating with 1 complaint in the last 3 years (click here to see details)	4.2/5 stars based on 40 reviews upto 2015 (see TrustLink results here)	Check out our Monex Deposit Company review

/* Here you can add custom CSS for the current table */ /* Lean more about CSS: https://en.wikipedia.org/wiki/Cascading_Style_Sheets */ /* To prevent the use of styles to other tables use "#supsystic-table-5" as a base selector for example: #supsystic-table-5 { ... } #supsystic-table-5 tbody { ... } #supsystic-table-5 tbody tr { ... } */

Disclaimer

Please note that the content on this website does not constitute financial advice and should not be taken as such. The owner of this site may be paid to recommend Regal Assets or other companies. The content on this website, including any positive reviews of Regal Assets and any other reviews, may not be neutral or independent. It is advisable to always speak to a certified financial advisor before making any investment decision.

Get This Free Report & Protect Your Self Against Gold Scams:

Click Here To Get Free Report

Current Gold Price

The post Gold IRA Rollover appeared first on Precious Metals Investment Guide.

source http://www.preciousmetalsinvestmentguide.com/gold-ira-rollover/

GOLD STARTS THE YEAR OFF STRONG

GOLD STARTS THE YEAR OFF STRONG—AND SOME SAY IT’S ABOUT TO GET EVEN BETTER FOR BULLION – CNBC

This Monday (27th Feb) saw gold rise to a three-month high of $1264.90 an ounce. This moderate increase has some economic strategists claiming we will see this particular precious metal increase in value even further in the not too distant future as investors move to this investment as a result of uncertainty within the political spectrum worldwide.

With 2016 seeing Britain leave the EU, referred to as ‘Brexit,’ there is now fear with the upcoming French elections in April that we will see a ‘Frexit.
Erin Gibbs, the equity chief investment office at S&P Global stated in a recent CNBC interview:

“We (referring to the French elections) really see this as heightened geopolitical risk” She went on to say “…the potential of a French “exit” from the European Union — and the German election in the fall. The U.S. dollar weakening slightly last week also helped push gold higher,”

Yahoo Finance reported on Monday 27th February that

“Bank of America Merrill Lynch forecasts gold rising to $1,400 by the fourth quarter of 2017 according to a report published Monday by foreign exchange strategist David Woo. Negatively yielding bonds have made gold appear more attractive in a sort of portfolio rotation, Woo wrote. As interest rates and the price of gold tend to move inversely, more flows into negatively yielding government bonds would cause gold to rise.

From a technical perspective, Miller Tabak equity strategist Matt Maley observed in a recent note that gold breaking above a key technical level of $1,250 was a positive signal and could lead to a “relatively quick” move to the $1,300 mark, though he added that gold may have a “breather” in the near future “to digest its strong recent gains.”

Historically gold rises when we see stocks take a downturn, but what is interesting right now is that both are rising simultaneously with gold up 10% YTD and the S&P500 up 6% at the same time. So from the rumbles that are coming out of Wall Street, it certainly seems like we need to keep an eye on gold over the coming weeks.

The post GOLD STARTS THE YEAR OFF STRONG appeared first on Precious Metals Investment Guide.

source http://www.preciousmetalsinvestmentguide.com/gold-starts-year-off-strong-say-get-even-better-bullion/

Platinum Investment

Is Silver A Good Investment?

Why Gold Is A Good Investment

 

What You Need To Know If Considering Investing in Gold.

There are a number of various reasons why you should consider investing in gold, especially as an IRA investment, none more than the diversification of your investment / retirement portfolio.

In 1997, Congress passed the Taxpayer Relief Act which allowed investors to put away gold and other metals into a self-directed IRA. They were responding to investors who wanted to diversify their retirement portfolio from paper assets like cash, stocks, and bonds to add some tangible assets.

Edmund Moy, who is the leading Strategist for The Fortress Gold Group and was also the Director of the US Mint between 2006-2011, stated the following an article he wrote in September 2014: (click here for original source)

"By 2013, the total amount of assets held in all the Individual Retirement Account’s set up in the USA totaled 6.5 trillion dollars, and out of that amount 2.5 – 4 percent were now in non-traditional forms, such as gold."

He went on to state:

“And looking long-term, there are several risks that favor the continued growth in gold IRAs, such as the fragile global economic recovery, potential of aggressive inflation in the United States, growing concern of a major stock market correction and increased geopolitical risks.”

When it comes to building a diversified investment portfolio, investing in alternatives from the normal investments, needs to be considered. The main reason being that diversification helps balance out the variances in values of other types of investment commodities. Sometimes an investor may be heavily invested in a particular type of investment such as stocks or ETF’s, but with a diversified portfolio, they may well have stocks from various sectors from the retail sector to the tech sector and so on.

When one of these sectors, such as the oil sector, is going through a bad patch, as it is at the time of writing this, the chances are good that sectors such as retail or tech stock may be doing quite well. This not only balances out losses from the oil sector, but it can actually help to increase the value of a portfolio significantly over time.

Listen to Billionaire Investor Kevin O'Leary explain why he diversify's his portfolio with gold investment

Investors Want More Diversification

True effective diversification is not just diversifying stocks and ETF's, it is much more than that. More and more investors are looking to broaden their horizons by investing in things like REIT's, corporate bonds, gold, and silver, as well as stocks and ETF's.

BullionVault, who are a leading peer-to-peer gold-and-silver-bullion exchange, based in London, recently produced their annual report and analysis on how varying assets have performed over the last 40 years (1976-2015) in both the UK and the USA. (see report here)

As you can see from the facts below, although not the number one performing asset, gold has beaten other key assets in its returns over the past 40 years and has this century outperformed corporate bonds by a considerable margin.

ASSET PERFORMANCE LAST 40 YEARS

• Gold’s 40-year change (+669% gross of costs) has beaten inflation (328%), housing (598%, excluding costs + yield) and cash (cumulative 535%).
• Commodities have dropped below end-1975 levels (-3.05%);
• REITs are the best-performing asset both since 1976 (9,177% cumulative on reported performance before costs) and also so far in the 21st century (up 484% since 1999);
• Gold is the next best performer since 1999 (+340%) and then corporate bonds (160%);
• Since 1976 gold rose in all 3 years when US stocks lost 10% or more, averaging 9.6% gains. It averaged 11.3% when REITs fell the same, rising on 3 of 5 occasions;
• Cash interest rates have lagged inflation 16 times since 1975. Gold rose in all but 4 of those years, three of them 2013-2015;

 

Disclaimer

Please note that the content on this website does not constitute financial advice and should not be taken as such. The owner of this site may be paid to recommend Regal Assets or other companies. The content on this website, including any positive reviews of Regal Assets and any other reviews, may not be neutral or independent. It is advisable to always speak to a certified financial advisor before making any investment decision.

Current Prices

What Are The Pros & Cons of Gold Investment?

What are the pros to investing in gold?

 

A Shelter Against Volatility

The answer to why an investor should purchase this kind of investment is multifaceted. The first reason to invest is because it can be used as a hedge of protection against market volatility and inflation. Market volatility can affect the value of gold, but it typically affects it much less than other types of investments. One of the reasons for this is that the value of stocks, bonds and ETF's are based on paper money and not in gold.

Protection from Inflation-Deflation

Inflation has always been a concern because inflation weakens the value of paper money. However, gold does not labor under the same constraints as paper money. It has a value that is established mainly through demand. Paper money can be weakened when there are shifts in power from one country to the next, or when there is some sort of political upheaval. In some cases, paper money can be rendered completely worthless, should the affairs of a particular country get bad enough. It is in these situations, gold benefits the investor.

Gold has had a remarkable performance during times of inflation and also deflation. Inflation is basically a period when the economy of a nation is struggling and the cost of living is high. During these times, gold prices tend to increase and that’s why it is often regarded as a ‘hedge against inflation’. Deflation, on the other hand, is when the economy is also struggling and business activity is quite slow. During deflation, it has been seen to perform well too.

Value

Another thing to consider is its value. As you can see from the price chart below, the value of gold did skyrocket some years back, at one point reaching almost $2000 per ounce. Since then it has slipped to around $1200 per ounce (Current gold price can be found in the sidebar to the right). There is some discussion as to its value throughout the rest of 2017. Some experts are expecting gold to experience an explosion in value sending it closer to $2000 per ounce again. Other investors feel that while gold may not rise to this level, its values will steadily increase throughout 2017. Regardless, gold is at a good value and purchasing gold at current prices may be a wise investment as it is poised to increase in value, both in the short-term and the long-term.

What are the Cons to investing in gold?

While we do think that gold is a good investment, there are downsides to investing in it, just like there are downsides to investing in anything. Therefore you really must consider your reasons as to why you want to invest in it or any other of the precious metals, before you start out.

It doesn't produce cash.

What we mean by that is, if you are looking to invest for the sole purpose of generating cash on a regular or short-term basis, gold is not the investment type you want. Precious metals don't pay out a dividend, therefore if that is what you need to consider stocks.

Don't think of it as a short-term investment

OK, we all know that you make your money when what you have invested in increases in value. While Gold has increased considerably in value over the past 20 years, over a limited time frame we see the value of gold bounce in both directions. We are not saying you can't make money short term, if that is what you want to do, you are going to have to be checking its price almost like a Hawk on a day to day basis. But if you take the view that investing in it is for the long-term and it is for diversification, then you can buy it and leave it alone without stressing as to whether it's going to make you any money tomorrow.

 What Are The Options For Investing In Gold?

There are various ways in which you can invest in gold. You can do so through ETF's, closed-end funds, and only stocks such as mining companies. But we want to talk about two particular options for your consideration: Buying physical gold outright and holding it in a vault/depository outside the banking system and secondly investing it into a gold IRA rollover.

We cover both options in detail, explaining the benefits and options available, here on our designated gold companies page. 

 

The post Why Gold Is A Good Investment appeared first on Precious Metals Investment Guide.

source http://www.preciousmetalsinvestmentguide.com/types/gold/

Types of Precious MEtals You Can Invest In

Investing in precious metals has over time become more popular for various reasons. It certainly is not the ‘golden ticket (no pun intended) when it comes to financial security. But because of the options it provides, such as not being affected by either deflation or inflation,  a history of holding its value, and probably the most popular reason, diversifying your portfolio, you can understand why investiture in precious metals, and particularly gold, is on the slow rise.

So what are the various types of precious metals available for investment? There are primarily five types, from the common such as gold and silver and copper to two you may never have thought of before, platinum and palladium.

Below we give you a brief outline and history of four of these metals, the ones that you can only use to invest in a precious metals IRA, plus a link to its individual page with further information.

Gold Investment

Since the end of the gold standard in the early 1970’s, along with the fixed price of gold at $35 an ounce, gold has increased in value and interest. At the time of writing, the value of an ounce of gold was $1,190 and individuals are using it now as a way of both diversifying and increasing the value of their portfolios.

A Tendency To Hold Its Value: A simple look at any trading or value graph will show you that over time, especially through difficult economic times, gold maintains its value. It was only under the gold standard set by President FD Roosevelt that the value of gold dropped, deliberately.

Weak Dollar:  Whenever the US dollar has fallen in value against other currencies (as was the case between 1998 and 2008) investors pour their money into gold for added security. Any mass buying of a stock, product or commodity ultimately sees its value increase and so between 1998 and 2008 the value of gold virtually tripled and then doubled again over the next 4 years from 2008. (See historic gold price chart below). There is a lot of chatter right now about the potential devaluing of the dollar over the next few years, whether or not that happens, the value of gold will continue to hold its value.

Inflation & Deflation: The US is experiencing relatively low inflation at the moment, but what we do know from history is that the value of gold increases, when inflation, the cost of living, increases. Inflation has been high here in the USA on five different occasions since the end of world war two. On those occasions (46,74,75,79.80) the return on the Dow Jones Average was as low as -12.3%, whereas gold was 130%. Deflation, which is when we see business slow down and the nation has excessive debt (i.e. the great depression of 1930) the power of gold increased.

Diversification: At the beginning of this page I mentioned that purchasing silver or gold, in particular, should be seen as a way to diversify to create a greater balance and stability on your returns. The best way to diversify your portfolio is to have your money in investments that do not correlate with each other. When you look at how stocks and gold perform over the same time period, you will see that there is a clear seesaw effect. When the value of stocks was very low in the 1970’s, the value of gold was high. The reverse was seen in the late 80’s and into the 90’s when stocks were high, the value of gold was low and when we had the stock market crash of 2008, what do you think happened to the value of gold? Well as you will see on the chart above, it went up. So gold should not be viewed as a single entity for wealth growth, but a commodity for diversification to help growth and create better stability, whatever the performance of the market.

Check out our specific gold investment page.

Silver Investment

Silver has been described as ‘the poor man’s gold’ due to its low value. Although this is true (the price of an ounce of silver at the time of writing is $17.13 compared to $1,190 for an ounce of gold) the ROI is the key to whether something is worse investing in, not it’s cost of purchase. Also, it is worth noting that gold and silver historically do not tend to rise and fall in value together. When one is doing well, we have seen the other performs less well. For example between November 2008 and  the spring of 2011 (basically from the start of the last crash to the beginning of its recovery), although gold performed well, doubling in value, silver performed even better going from $12.21 an ounce to $51.52 an ounce, that is more than quadruple the return.

As an investor, ensuring that your portfolio is well-balanced and capable of weathering unpredictable economic climate is key to securing your financial future. Diversifying your portfolio is necessary if you want to be protected at all times, and investiture in gold or silver is a great way to do this.

It is important to realize that there is a difference between physical silver and paper silver, and the respective prices. Physical silver refers to the actual metal, which you have the option of storing in your home or in a vault belonging to a custodian. Paper silver refers to the financial instruments that are based on the spot physical prices. Such instruments include exchange-traded funds (ETFs), futures and so on. The advantage of owning physical silver is that you will get the reassurance of always being protected regardless of the changing economic environment. Silver can withstand inflation and a weak dollar, just like gold, which is not something that can be necessarily said about paper silver and stocks and bonds.

It is also important to carefully determine how much you are willing to invest in silver. Do not get carried away by the prospect of investing, just because the price is low, to the point where you risk other parts of your portfolio. Remember the idea is to diversify, not completely do away with other vehicles. The only way you are going to ensure financial security is if you see to it that all grounds are covered, as far assets go.

Check out our specific silver investment page

Platinum Investment

At the time of writing this content, the price of Platinum was just over $980 an ounce. Although that price is below the current price of God ($1191 an ounce), Platinum has been known to increase in value above the price of Gold. The reason for this is due to the fact Platinum is a rarer metal than gold or silver.

Its primary use is in the manufacturing of catalytic converters on motor vehicles. As the demand for emission control on cars increases, so does the demand for Platinum. Although the actual amount of Platinum used in each converter is small (ranging from 1-15 grams depending on the size of the vehicle) there are over 60 million cars manufactured each year (with a 3% yearly growth rate). So as the demand for vehicles increases, so will the demand for Platinum.

The mining of Platinum occurs in mainly two countries, South Africa and Russia. South Africa is the largest producer of Platinum with Russia second, although Russia is the biggest provider of Palladium (see below).

So why should you consider investing in Platinum? Well we go into this in more detail on our specific platinum investment page, but you may want to consider three main reasons:
1. There is a limited source of Platinum. It is rarer than gold and as already mentioned is it primarily mined in only two countries. Not only that, but the actual mining of platinum is costly, making it a metal that is mined on a limited capacity.

2. Because Platinum is resistant to corrosion, along with being highly durable, new uses for it are being discovered on a regular basis, making its demand increase.

3. Although the price of Platinum is fluctuating at present, historically, just like gold, its value has increased dramatically. As the chart below from InfoMine.com shows, since July 1996 where its value was under $400 an ounce, it rose to its peak in 2007 of over £2010 an ounce, (a value gold has yet to achieve) to bouncing around the $1,000 an ounce at present.

Check out our specific platinum investment page

Palladium Investment

The reason why we have put Palladium at the end of the list is due to the fact you probably never considered it before as a metal to invest in, or you have never heard of it.  Palladium comes from the very same group of metals as Platinum, yet it has the ductility and malleability of gold. A relatively new metal, it was discovered in 1803 by an English chemist.

The primary use of Palladium is within industry. Its usage is within multilayer ceramic capacitors which tend to be used in cell phones and laptops. Also, like Platinum, it is a component in the manufacturing of catalytic converters

Because it is in the same group of metals as Platinum, it is also mined in South Africa and Russia, along with Zimbabwe.

In 2016 it was the best performing precious metal, with its price rising more than 20%, making that its biggest annual gain in six years.

When it comes to creating a precious metals IRA, you may not have considered Palladium, but as we show in our list of precious metals approved for an IRA, Palladium can be added, if of course, it is the type that meets IRS approval.

Check out our specific palladium investment page.

The post Types of Precious Metals You Can Invest In appeared first on Precious Metals Investment Guide.

source http://www.preciousmetalsinvestmentguide.com/types/

Monex Depost Company Review

GoldSilver Com Review

USA Gold Review

Definition of an IRA & What are the different types Available?

In very simple terms, an Individual Retirement Account (IRA) offers you tax benefits if you want to set aside money for your retirement. It is a form of retirement plan provided by financial institutions to help individuals save for retirement and get various tax advantages that ultimately benefit the account holder or their beneficiaries.

The IRA can include different types of assets or investments which you choose. You may choose to invest in stocks, bonds, companies’ funds or even set up a precious metals IRA. You can even appoint the financial institution to act as the custodian of your IRA and manage assets in the account. There are different types of IRAs. Anyone who wants to invest in an IRA should start by understanding the different options available and how they work. There are 4 main types of IRA: Roth, Traditional, SEP and SIMPLE. plus in addition you have what is referred to as an IRA Rollover (i’ll talk about that later on).

Traditional IRA

A traditional IRA is one that allows you to direct funds to your account and have them grow tax-deferred. This simply means that you will not be taxed until you want to withdraw the money. For you to withdraw from a traditional IRA under 59 ½ years of age, you’ll have to pay income tax together with certain tax penalties. This traditional IRA can be considered by those who have earned income and would like to direct their contributions on a regular basis. There are cases where your income tax bill will reduce if you direct part of your earnings to a traditional IRA.

Traditional IRAs are the most common and it’s where cash contributed to the account is not taxed until you withdraw it. This means that money will continue accumulating in your account and when the time comes to take it out, you will pay taxes for it. If you decide to withdraw the money before you are 59 ½ years old you are also going to pay a penalty tax in addition to the other taxes that area due. There is a contribution limit that is set by the government for every tax year. As of 2014, the contribution limit was set at $5,500.

Roth IRA

The biggest difference between Roth and Traditional IRAs is in the tax benefits offered. With the Roth IRA, you invest money that has already been taxed in your account. But since you don’t get to invest in untaxed money, you benefit in the long run when the time comes to withdraw it. You don’t get to pay income taxes when withdrawing the money from your Roth IRA, but this is subject to certain conditions. For instance, you must have reached age 59 ½ to be able to withdraw from your Roth IRA without paying any taxes. If you want to withdraw early, expect to pay a penalty the same way you would do if you had a Traditional IRA. But there are cases where early withdrawals from the Roth IRA are not penalized. For instance, if you are using the money to buy a first home or recover from a disability, you will not be taxed. But the contribution limit is the same as that of the Traditional individual retirement account. You need to consider the pros and cons of each account before choosing to invest for your retirement.

Most people consider the Roth IRA to be a better investment option compared to the traditional IRAs. This is because a Roth retirement account allows the investor to contribute cash without a tax deduction and then when you reach 59 ½ years, you can withdraw it without paying a penny in taxes. But the contribution limits are the same as those on the traditional account. There are also cases where investors who are more than 50 years old are allowed to deposit more money in their IRA.

The table below is courtesy of Fidelity.com who clearly explain the difference between a Roth and a Traditional individual retirement account

	Roth IRA	Traditional IRA
Tax benefits	Tax-free growth and tax-free qualified withdrawals.	Tax-deferred growth and tax-deductible contributions.
Age requirements	Contribute at any age.	Contribute until you’re 70½.
Income requirements	Your income affects how much you can contribute. See current limits.	Your income does not affect how much you can contribute.
Withdrawal taxes	You won’t pay taxes when you withdraw your contributions, and you won’t pay federal taxes on your earnings, as long as the five-year aging requirement has been met.	You will pay taxes when you withdraw your pre-tax contributions and when you withdraw any earnings.
Early-withdrawal penalties	If you make withdrawals before you’re 59½, you might have to pay taxes on your earnings plus a 10% additional tax.	If you make withdrawals before you’re 59½, you might have to pay a 10% penalty.
Minimum required distributions (MRDs)	MRDs do not apply during your lifetime.	MRDs must be taken starting in the year you turn 70½

SEP IRA

The Simplified Employee Pension Individual Retirement Account is more or less like a Traditional IRA with the major difference being that it offers the investor higher contribution limits. With this type of individual retirement account, a married couple who receive quite a high income, say $250,000 can make up to $100,000 in contributions to their SEP IRA. However with this type of account, early withdrawals are not allowed.

Simple IRA

SIMPLE IRA stands for the Savings Incentive Match Plan for Employees. It is usually set up by small employers to offer their employees a suitable retirement plan. Like the SEP IRA, this one also has a higher contribution limit. As of 2012, investors were allowed to contribute up to $11,500 and an even higher limit was set for those who were 50 years or older. The employer sponsoring this plan would make a matching contribution depending on a certain percentage of the employee’s earnings. So the combined employee and employer contribution should not exceed the maximum required limit.

How does an IRA Work?

Opening an IRA can be one of the best decisions you ever make as you plan for your retirement. It is simply an account that allows you to enjoy certain tax benefits as you save for your retirement. Anyone can open an IRA so long as you have a taxable income. You’ll just need to visit a financial institution like a bank or a brokerage firm and get them to explain what options they have and then fill some paperwork.

How to fund your IRA account

As soon as you open your IRA, the next step is to fund it. You can invest in stocks, mutual funds, index funds, bonds or any other options available. With a traditional IRA, money is deducted from your earnings. The money in your IRA increases without being taxed. You are only going to be taxed when you withdraw it at retirement. The taxes are deferred until your retirement. That’s why they say the earnings grow on a tax-deferred basis. Upon retirement, individuals are usually in a lower tax bracket. The amount that is taxed will depend on several factors such as the individual’s income as well as the tax rate that applies to that year. There are also statutory limits that will apply.

Setting up IRAs

You can contribute money to different IRAs so long as it doesn’t exceed the maximum annual limit. As of 2014, individuals are allowed to contribute up to $5,500 annually to their traditional or Roth IRAs. The limits can increase as you get older. For instance, once you attain the age of 50, you are allowed to contribute a maximum of $6,000. You must be at least 21 to set up an individual retirement account.

The Roth IRA

The major difference between traditional and Roth IRAs is that so long as you have attained 59 ½ years, money that is withdrawn from the account is not subject to income tax. However, if you decide to make an early withdrawal, you will face the same penalties that apply to traditional IRAs. However, you will not pay any penalties for early withdrawals if the money will be used for a first home purchase.

There are many different types of IRAs and it’s important to understand how each one of them works before you choose to open any account. Opening multiple IRA accounts can help you to diversify your investment but you may also consider consolidating them to avoid paying multiple maintenance charges.

How many ira accounts can you have?

How many IRA accounts can one person have? You are allowed to contribute to more than one IRA. There are situations where you may end up with multiple ones. For instance, if you inherited one but you already had one of your own, you may have to send contributions to both. You can even have a traditional IRA as well as a Roth and direct funds to both in the same tax year.

However, you must not contribute more than the annual maximum amount. This is a limit that is set on all accounts in any given tax year. So all the money you deposited across all the IRAs must not exceed this limit. In 2011, the maximum contribution limit was set as $5,000. This means that if you deposited $4,000 in your traditional IRA, you can only deposit a total of $1,000 in your remaining ones. As at 2014, the maximum contribution per IRA beneficiary was set as $5,500 which means that no matter how many you own, you are not allowed to contribute more than this amount per tax year. The limits do not change whether it is for a Roth or traditional individual retirement account.

Disadvantages of maintaining multiple IRAs

Keeping multiple accounts can be a good way to diversify your investments. You can choose to invest in stocks in one IRA and then open another like a mutual fund. However, multiple IRAs come with various disadvantages. As you choose to open multiple accounts, consider the cost of maintaining them. Costs such as commissions, custodial fees and other additional charges may make it expensive to own multiple accounts. With every IRA, you’ll have a separate custodian. That means you’ll have to pay the custodial fee annually which can be as high as $50. This means that the annual fees will increase if you have more IRA accounts. That’s why many people choose to consolidate their IRA assets in order to have a few accounts. Consolidation combines the different accounts into one that can meet the individual’s investment needs.

As an investor, you are allowed to choose how much you want to contribute to each account you own. You are even allowed to liquidate any of the accounts that are not performing well and maintain the rest. These are decisions you need to make wisely. Setting up multiple IRAs is usually expensive and consolidation is a great way to save on costs.

Is Investing in Gold for Your IRA a Good Idea?

Have you been thinking of investing your retirement savings in precious metals? Many investors are pulling away from the stock market for a variety of reasons. For one, the risk of inflation is undermining the stock market and secondly, safer investment options are giving very small returns. Investing in gold has been considered a smart move for several reasons.

First of all, gold can never be devalued, unlike the dollar. Unlike the stock market, the price of gold is something the government cannot manipulate easily. You have full control of your savings and investments if you choose to invest in gold. There’s absolutely no risk of losing your investments because of government bonds and mutual funds.

It’s a fact that the prices of gold are not affected by inflation. When paper assets are devalued, there’s a high chance the price of gold is increasing. Adding gold to a retirement portfolio not only helps an individual to diversify their assets but also acts as a guard against inflation.

Physical gold can help to reduce the risk of losing your retirement savings because of inflation especially if you are planning on investing in the long term. It is a smart choice for those people who want to invest a lot of funds into their IRAs and distribute them in different forms of investing.

A gold IRA is simply an individual retirement account that allows you to invest in physical gold instead of the paper-based stocks, bonds, and cash. But for you to convert your IRA funds into gold, you’ll need to find a suitable broker or custodian. Custodians are usually commercial banks, brokerage firms and other institutions that have been approved by Federal agencies to provide their custodial services to individuals. There are a number of financial institutions that offer self-directed IRAs which you can invest in gold. The broker or custodian will create and manage your account and even store the actual gold.

However, there are certain regulations that qualify the gold that can be held in an IRA. For instance, the gold bars or coins should meet certain IRS fineness standards in order to be held in the account. The gold must also be held by the IRA trustee or custodian and not the account owner. Additionally, gold coins and bars should be stored in a depository that is approved by the IRS.

What are IRA Custodial Fees?

Individual retirement accounts are held by financial institutions such as commercial banks, retail brokers, and investors. These financial institutions or groups of people are referred to as custodians. The commercial institution or brokerage that holds the IRA usually charges a custodial fee. While you can manage your own IRA, there are activities that you cannot manage to perform on your own. The custodial fee covers the cost of managing the account, safekeeping or any changes that need to be made to the IRA.

What do custodians do?

Custodians perform many roles. They maintain all the records pertaining to your account and also report withdrawals to the Internal Revenue Service annually on your behalf. In some cases, the custodian can be responsible for investing the assets in the IRA.

How much should you pay?

It is important to understand the custodial fee charged by the financial institution that will be managing your account. Know how it is calculated and compare with what other institutions are offering in order to get the best deal. There are several factors that affect how much you are going to pay for custodial services; they include things like the rate rival firms are charging and the kind of service you require. Most custodians charge an annual fee of between $20 and $50. This amount can be deducted from your account as an investment expense. You can pay this amount via check if you wish.

Additional fees

Other than the custodial fees, you can expect other additional expenses when you set up your IRA. There are custodians that charge management fees if you choose to give them the responsibility to manage your account. The amount may vary from 1 to 2 percent of your account value annually. Other charges such as the stock, commissions and transaction fees may apply.

Ways to save on custodial fees

There are cases where the custodial fees will be waived by the financial institution especially if you are a long time customer if you have other accounts with the bank or you meet a certain minimum level of investment. Starting your IRA with a specific minimum amount of money can also save you from paying custodial fees. There are also online financial institutions that do not charge any fees for custodial services. You can also avoid paying custodial fees by setting up an automatic transfer of funds from your bank account to the IRA. Know what options the financial institution offers to waive custodial fees.

The post Definition of an IRA & What are the different types Available? appeared first on Precious Metals Investment Guide.

source http://www.preciousmetalsinvestmentguide.com/different-ira-types/