Gold Investment Options

Gold Investment Options

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There are several reasons you may be interested in investing in gold. You may be looking for a hedge against the stock market or inflation. Regardless of your reason, there are options to suit both your available funds and risk tolerance.

Before you decide how to invest your money, you should understand which types of investments are available and the tax benefits you are entitled to receive. Whether you invest in gold or silver, metals generally move opposite the market.

Investing In Physical Gold

Investing In Physical Gold

You can purchase physical gold in a variety of forms including bars, coins and bullion. You will find precious metals brokers both locally and online. Although you can store gold in your home, there is a safety issue involved.

If you have a safe, your gold is more secure. Your best option is to store your gold securely at a gold storage facility. In most instances, you only have to pay a small annual fee.

Many brokers work with these facilities, can offer excellent recommendations and some decrease your expenses by providing free shipping. When you decide to sell, the majority of brokers will buy your gold back.

We recommend purchasing physical gold to protect yourself from economic downturns and to ensure you have a balanced portfolio for the future.

Benefits of a Gold IRA

Opening a Gold IRA enables you to receive tax benefits when you purchase and store IRS-approved gold. You can open an account with a variety of gold brokers offering specialists to help you establish your self-directed Gold IRA.

The specialists will make certain the gold you purchase has been approved by the IRS. If you already have an IRA or 401k, your specialist can determine if the account is eligible for a rollover.

Provided the gold is IRS-approved, you can store physical gold for your IRA in an approved storage facility. You can even purchase more gold later to increase the worth of your portfolio or retirement savings.

We want you to understand if you do not sell your gold until you are 59 1/2, you will not pay any penalties or taxes. Once you reach the age of 70 1/2, you must take minimum distributions from your Gold IRA account.

We recommend opening a Gold IRA to secure and diversify your retirement portfolio for the future.

Gold Stocks as an Investment

Gold Stocks as an Investment

Purchasing stock in a gold company allows you to buy into a processing or gold mining operation. When the cost of the gold sold by the company exceeds the funds required for the mining operation, the company makes a profit.

Gold stocks are a good way to take advantage of the rising price and demand for gold indirectly. Due diligence is extremely important when you choose gold stocks. Your two most important considerations are:

  • The expenses for a mining company in a remote area are higher, often resulting in decreased profits.
  • Mining operations in areas of social unrest or geopolitical influence can close for short or long periods of time.

If you are considering purchasing gold stocks, we recommend a high-quality, financially stable company with contracts for mining projects in the future. Another option is purchasing stock from gold processing companies due to lower volatility.

If you are interested in a long-term investment, gold stocks are a good option. Keep in mind, dividend income is generally non-existent with this type of investment.

Purchasing Gold Exchange Traded Receipts

Purchasing Gold Exchange Traded Receipts

You can own physical gold by making an investment in Gold ETRs or Gold Exchange Traded Receipts through the Canadian Gold Reserves Program. There are several brokerages in Canada and the United States enabling you to trade Gold ETRs.

You receive a gold receipt to prove you are the owner of physical gold bullion. Your gold is stored at the Royal Canadian Mint. Your monthly fee is the same as a 0.35 percent annual rate. Your gold is guaranteed to be a minimum of 99.99 percent pure.

Once per month, your ETRs are redeemable for cash or gold bullion with a minimum ETR redemption of 100,000. As opposed to taking physical possession of your gold, you simply sell your certificates through the Toronto Stock Exchange.

If you are interested in a mid or short-term investment or trading on the TSX, Gold ETRs are a good option. You eliminate the fees and constraints of redeeming your receipts for physical gold.

Advantages of Gold Funds

Gold mutual funds allow for an investment in a combination of:

  • Physical gold
  • Precious metals
  • Gems
  • Processing stocks for precious metals
  • Foreign and domestic stocks in gold mining companies

We recommend conducting research to determine the best gold fund for your investment needs and financial goals. Certain gold funds contain nearly all physical gold, enabling you to track gold prices effectively.

The focus of others is emerging gold markets which are often lucrative for the future. Some include a percentage of precious minerals and metals such as diamonds and gold. You must be comfortable with the exposure of the company you select.

Make certain you check the performance of the mutual funds in the past in comparison to the overall market. Purchasing gold fund shares offers portfolio exposure and investment advantages at a lower cost.

We recommend low-load or no-load funds with an expense ratio below one percent. If you find gold funds appropriate for your risk tolerance, this is a good investment for the long term.

Understanding Gold ETFs

Understanding Gold ETFs

Gold ETFs or exchange-traded funds are baskets of stocks you can purchase on the stock exchange. You can use futures to track gold prices or back your Gold ETF with physical assets.

The majority of Gold ETFs hold options and derivatives. Your gain is taxable at a rate of 28 percent. We do not recommend ETFs as a long-term investment because your profits can be impacted.

Prior to making an investment, you need to understand the ETFs you are considering including past performance and tax rates. We recommend ETFs for short sales, a diversified portfolio and sophisticated investors.

What Are Gold ETNs?

What Are Gold ETNs?

An ETN is an abbreviation for an exchange-traded note and combines bond securities with certain aspects. A gold index can be tracked using Gold ETNs and can move in the opposite direction of gold.

The concept is similar to purchasing non-interest-bearing bonds. Gold ETNs are issued by banks including a maturity date. Once your ETN has matured, you are paid back by the bank. Your profit is dependent on gold futures.

Although your risk is higher, so are your potential profits. We recommend Gold ETNs for:

  • Short-term trading
  • Individuals with a high-risk tolerance
  • Shorting the gold market
  • Investors with enough available funds to back up the investment

#1. Goldco


If you decide to invest in a Gold IRA, one of the most trusted and well-known companies for Gold IRA rollovers is Goldco. The firm is privately held with the goal of helping clients protect assets and increase wealth.

Goldco has received an A+ rating from the Better Business Bureau and a Triple-A from the Business Consumer Alliance due to ethical business practices. The specialty of the firm is rolling existing IRAs into Gold or self-directed IRAs.

When you establish a Gold IRA, you receive tax benefits for your gold investment in addition to the advantages of a retirement savings plan. An investment offers protection from stock market volatility while you set up the retirement you want.

Goldco offers you an investment expert team to help you roll over your current retirement plan or establish a new Gold IRA. If you are interested in beginning the necessary process, a form to open a new IRA is available on their website.

Once you decide how your account will be funded, the transfer process can begin. The Goldco team is available to provide assistance with the process or to answer any questions you may have. All you need to do is reach out.

Once your account funding is received, you can choose the precious metals you want to be included in your Gold IRA. You will receive assistance and recommendations from a team member regarding the bars or coins you want to invest in.

There are specific rules the IRS has established regarding the purity of the precious metals or gold held in your IRA. Gold is required to be a minimum of 99.5 percent pure, and silver 99.9 percent.

Goldco offers a wide range of IRS-approved gold bars and coins. Your gold is stored in a facility with IRS approval. Goldco makes the arrangements to have your gold shipped to the facility.

Your gold remains protected and insured until you are of an eligible age to start making disbursements. Once you have completed the Gold IRA rollover process, new contributions can be made annually to your account.

You simply select the new bars or coins you want to add to your account. If you are below the age of 50, contributions can be made yearly in the amount of $6,000 with no penalties. Once you reach 50, contributions increase to a maximum of $7,000 per year.

Augusta Precious Metals

Another good option for an IRA rollover is Augusta Precious Metals. Since becoming established in 2012, the firm has earned a good reputation. The Business Consumer Alliance issued a Triple-A rating and the Better Business Bureau an A+.

Client reviews and rating sites such as Facebook and Google are excellent. Augusta Precious Metals provides assistance with rolling over existing retirement accounts to establish a Precious Metals IRA.

You will receive all of the benefits associated with an investment in gold in addition to the tax advantages of an IRA. The company goes to great lengths to ensure your retirement account rollover is as simple and easy as possible.

A self-directed IRA custodian will work with you to help open your new account. Your existing retirement account is rolled over during the process. The IRA custodians are well trained and knowledgeable to ensure your questions are answered correctly.

Your custodian makes certain the process is smooth to ensure you do not receive any penalties from the IRS. The next step is working with a team member to help you choose the bars or coins you will add to your IRA account.

If you are uncertain as to whether your retirement account is eligible for a rollover, Augusta Precious Metals team members are available to assess the situation and determine if your account is eligible for a rollover.

You will be unable to hold the gold you purchased due to regulations from the IRS requiring your purchase to be placed into a facility with IRS approval. The company will provide you with several storage options approved by the IRS.

No matter which location you choose, you will receive insurance and excellent security to ensure your gold remains safe. Some of the locations you can choose from include:

  • Wilmington, Delaware
  • New Castle, Delaware
  • New York, New York
  • Las Vegas, Nevada
  • Jackson, Ohio
  • Los Angeles, California

If you are considering purchasing gold for a personal investment, Augusta Precious Metals offers assistance. When you make this type of personal investment, you have complete control.

You decide when, where and how your gold bars and coins are stored. The company provides free shipping for your purchase of all gold bars and coins. Your purchase is insured and packaged with discretion.

If there is an issue during shipment resulting in the loss of your package, your gold will be replaced by Augusta Precious Metals. The driver delivering your purchase will remain unaware of the package contents to increase security even further.

Birch Gold Group

Another highly-trusted precious metals dealer located in the United States is Birch Gold Group. The company has been in business since 2003, with its headquarters in California.

The goal of the company is to make certain every client has a full understanding of investing in gold and precious metals. This helps to ensure you make the best possible decision for your financial future and success.

When you work with Birch Gold Group, your questions are answered and you receive a good education. There are experienced professionals on the company team including individuals from Dun & Bradstreet, IBM and Citigroup.

Birch Gold Group has earned a rating from the Business Consumer Alliance of Triple-A and an A+ from the Better Business Bureau. Satisfied clients have also left high reviews.

If you want to roll over your current retirement plan to establish a Gold IRA, Birch Gold Group is a good option. You will work with the team to determine if your retirement account is eligible. The most common account types eligible include:

  • IRAs
  • Roth IRAs
  • SEP IRAs
  • 401 (k)s
  • 403 (b)s
  • 457s
  • TSPs

Birch Gold Group offers assistance throughout the process of rolling over your account. The first step is to initiate a transfer from your current account. The custodians' Birch Gold Group works with all have an A+ rating from the BBB.

The main custodians used by the company are Equity Trust and STRATA Trust. Once your funds have been received in your new Birch Gold Group account, you are able to select the gold or precious metals bars and coins to add to your new account.

If you are not certain which precious metals are best suited for your individual needs, a precious metals specialist is available to make recommendations according to your specific investment goals.

You will also be working with your precious metals specialist to complete any paperwork still remaining. Once your account is completely set up and your gold selected, your purchase will be transferred to a storage facility.

Birch Gold Group offers you a choice among several storage facilities approved by the IRS. The company is different than some of the other firms only offering silver or gold bars and coins.

If interested, you can also purchase palladium or platinum bars and coins. The company will offer you precious metals for your IRA with IRS approval regarding purity including:

  • 99.5 percent pure gold
  • 99.9 percent pure silver
  • 99.95 percent pure palladium and platinum

The company offers IRS-approved, secure storage in your choice of Brink's Global Service or the Deleware Depository. Both options provide you with peace of mind and high levels of security.

You will know your gold is safe and available when the time comes for you to retire or take disbursements.

Final Verdict

There is a wide range of reasons we consider gold a good financial investment. One of our main reasons is an investment in gold is an excellent option for portfolio diversification.

This prevents all of your assets such as traditional stocks from being stored within the same place. When you invest a portion of your money in gold, you receive protection from market downturns.

If there is another stock market crash prior to selling your stocks to retire, the impact is minimized when some of your assets are in gold. As time passes, precious metals such as gold will hold their value.

This is one of the key reasons gold is always in high demand by investors, technology industries, manufacturers and jewelers. The steady demand for gold helps make certain it will be available in the future when you decide to liquidate your portfolio.

Due to the limited supply of gold, the demand is consistently increasing. This makes investing in gold an even better option. When the time comes for you to retire, you will not experience any difficulties liquidating your gold.

Since the demand for gold is high, locating a buyer does not require a lot of time. If your investments were in real estate, the same would not be true. Overall, gold is an excellent investment to secure your future.

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