Question: What investment increases in value during times of war, inflation, high oil and gas prices, budget deficits and most economic turmoil?
No, that is not a trick question. While paper investments like stocks depreciate during negative conditions, there’s an investment vehicle that increases its price: GOLD. Historically, gold has been a valuable commodity and even up to this point in time, it is still considered precious. This probably explains why more investors are rolling their IRA, 401k, 403b and pension plans into IRA gold, specifically 401k gold account.
Since 2000, gold 401k’s performance has surpassed almost every other asset that can be included in a retirement account. A report said that a $25,000 investment in the year 2000 had grown to $26,853 by 2002, $40,817 by 2004, $50,289 by 2006, and $74,777 in 2007.
Currently, the US government allows Gold American Eagles and Gold proof American Eagles in gold IRAs. However taking possession of your IRA gold is qualified as a distribution and may require you to pay a possible penalty and the taxes to the IRS. This is the reason why it’s advisable to have your IRA gold stored at a depository who offers secure safekeeping service.
Other assets can be held in your precious metal IRA and it’s best to inquire about gold IRA transfer and related stuff from a gold investing company if you are contemplating to try it.
