Choosing a precious metal to invest in, such as gold, platinum, or silver, will allow you to diversify your portfolio. Taking this action in an IRA is possible if you use one that’s self-directed. This choice can give you flexibility, freedom, and the ability to invest in alternative asset classes that don’t depend on the earnings of a company.
Using a Self-Directed IRA to Hold Gold or Silver Coins
If you’re thinking about using gold as a precious metal to invest in, you may want to use a self-directed IRA. Like a traditional or Roth IRA, this investment vehicle offers tax advantages. Unlike those types of IRAs, it also offers you flexibility by allowing you to buy real estate and silver or gold coins.
Hedging Against Inflation
Using gold as a precious metal to invest in when you want to fight inflation may be beneficial. If the Federal Reserve continues to print dollar bills, it can have an inflationary effect that makes your dollar worthless when you purchase goods or services. Combating this can often be done by investing in silver, gold, or platinum.
Flexibility
Using a traditional or Roth IRA doesn’t give you the same flexibility you receive when utilizing a self-directed IRA. While you can put stocks or ETFs in a Roth or traditional IRA, precious metals, such as platinum or gold coins, are not allowed. This regulation can make using a self-directed IRA a crucial element in your portfolio if you want to incorporate precious metals into the mix. Adding this investment vehicle to your portfolio may prove to be a highly valuable choice.
