4 Types of Precious Metals IRA Investments that Will Protect Your Savings
Why did the founding fathers insist that we use gold and silver to back our currency? The U.S. Constitution says that “no state shall make any thing but gold and silver coin a tender in payment of debts.” But doesn’t that mean that the current financial system is unconstitutional? Argue however you like on that point, one thing is clear: the founding fathers had a reason for putting their faith in precious metals rather than paper currency. A precious metals IRA is a stable, sound investment that is simply superior to any other kind of IRA or 401k. Looking into a precious metals IRA custodian first involves learning about the actual value of the metals you’d be investing in. IRAs that use metals like gold and silver resist the fluctuations of economies and currencies, and remain untouched by inflation. These raw elements of the earth cannot be manufactured and they are in limited supply, meaning the sooner you invest in one of these accounts, the better. The following provides an overview of the four different metals that exist for IRA investment. Each of these is a legal commodity, and each offers different benefits. The following facts are proof of the value of these metals, and are also fun to know.
Perhaps the most commonly invested in of the four precious metals for IRA, gold is one of the least reactive chemical elements. It can be found in veins or in rocks and is also found in naturally occurring alloys with palladium and platinum. Sometimes it occurs in grains or even rarer nuggets. It is highly valuable due to its usage in coinage, jewelry, and electronics. 50 percent of new gold is consumed as it is used in the making of jewelry, while 10 percent goes to industrial use. The remaining 40 percent is held in investments. It is great for electrical connectors that are resistant to corrosion, hence its use in electronic devices. It can also be used in tooth restoration, infrared shielding, and in medicine, among its other many uses.
Another common investment for a precious metals IRA is silver. It can occur naturally as free form silver, and is often seen having formed alloys with gold and other metals. Historically used as currency, silver is also highly adaptable, being useful for not just jewelry, but also for the construction of solar panels and even in water filtration. Tableware, ornaments, and other silver works of art maintain their value even over hundreds of years, if the metal is kept from corroding. Industrially it is used as a conductor, and it can also be a part of a specialized mirror. It is used sometimes to catalyze chemical reactions. Diluted into silver nitrate, it has disinfectant properties and is often added to bandages, catheters, and other medical instruments. Silver is actually the most electrically conductive of all metals, but copper is preferred in wiring due to its having a much lower cost than silver. Silver is also the most thermally conductive.
Platinum is one of the rarest materials naturally occurring on earth, making it one of the more highly desirable precious metals for IRA. Malleable, dense, and highly unreactive, it is mostly used in electronics. 80 percent of the world’s platinum is found in South Africa, where it is usually extracted from nickel and copper ores, though there are a few native deposits. It is in fact the least reactive of all the metals, and its status as a noble metal means it is highly resistant to corrosion. Electrodes, catalytic converters, and platinum resistance thermometers are some of the items platinum is used for. One use that makes it particularly valuable is its effectiveness against certain types of cancer. It is a part of compounds that are used in chemotherapy treatment.
A lustrous white-toned metal named for an epithet of the Greek goddess Athena, palladium fits into what is called the platinum group of metals. It is similar to platinum, but it is the least dense of the platinum group and has the lowest melting point. Palladium is extremely rare and only occurs in a few places on earth, so it, like platinum, is among the most expensive and sought after precious metals for IRA investments. Aside from the rare ore deposits, palladium can be extracted by recycling scrapped catalytic converters. Catalytic converters convert harmful gases that are emitted from auto exhaust into nitrogen, water vapor, and carbon dioxide. The metal also has uses in dentistry and medicine, as well as in chemical applications. It can be used to treat ground water and is sometimes used in jewelry. Certain fuel cells that combine hydrogen and oxygen utilize palladium in their technology.
Precious Metals IRA Investment Tips
There are certain advantages to investing in precious metals that you should know about. When you invest in precious metals through Regal Assets, you will get instructions that break down the process for you in an easy to understand format. Here are some additional tips.
Bearing in mind that gold and silver are much cheaper than platinum and palladium, you may find that even though the latter two will fluctuate more intensely, the investment value will only be great if you can afford a large investment of many units.
Custodian fees and storage fees are often charged for precious metals IRA investments. These fees are necessary to keep your precious metals safe and well-monitored. You can be assured that Regal Assets will charge an affordable amount while still being able to guarantee the safety of your bars and bullion.
Be sure to educate yourself on the different forms that precious metals come in and the advantages and disadvantages of each. Gold, silver, and palladium can come in bars of different weights. All four of the precious metals can be purchased as bullion coins.
The best way to take care of your finances is by rolling over your 401k or IRA to a precious metals IRA custodian such as Regal Assets. The above facts should give you an idea of just what you’re investing in when you move your funds to a precious metals IRA.