Why gold makes sense in your retirement plan
As the ultimate long-term store of value, gold coins and bullion may very well be the ultimate retirement asset. Among the primary asset classes most often used in retirement planning -- stocks, bonds annuities and savings accounts -- gold stands out as the only one that does not rely on the performance of another individual or institution for value. This quality makes gold an ideal way to save for retirement for the times.
Former French president Charles DeGaulle once famously said of gold, it 'has no nationality and is eternally and universally accepted as the unalterable fiduciary value par excellence'. What better way to save for retirement than with the ultimate savings vehicle -- physical gold. We invite you to establish your gold retirement plan through USAGOLD.
How to set up your USAGOLD precioius metals' retirement account
The first step is to set up a self-directed account with our specially selected trust company (trustee). In a self-directed account, you decide which investments to make, and then direct the trust company to execute the transaction[s]. When you contact us, we will forward the proper paperwork by e-mail to open your trust account. Once you establish the account, you fund it with contributions or a rollover. The final step is for you to instruct the trust company to fund the purchase of precious metals from USAGOLD on your behalf. USAGOLD then deposits the metals directly into your account. The metals are stored fully insured at a well-known depository.
Approved precious metals products
Under the Internal Revenue Code, there are specific precious metals products allowed. The purity standard for gold is .999 pure, or 99.9 percent; for silver, .995 or 99.5 per cent pure; for platinum and palladium, .9995 or 99.95 percent pure. The one exception to the purity rule is the American Eagle gold coinage which is .916 net fine. These standards narrow the range of choices. You can purchase bullion bars or bullion coins for your plan. Bars must be manufactured by exchange-approved refiners.
Below is a list of allowable bullion coins:
Approved gold bullion coins include the U.S. Eagle, the U.S. Buffalo, the Canadian Maple Leaf, the Australian Kangaroo and the Austrian Philharmonic. These come in various sizes ranging from one troy ounce to one-tenth troy ounce.
Approved silver bullion coins include the U.S. Eagle, the Canadian Maple Leaf, Austrian Philharmonic and Mexican Libertad.
Approved platinum coins include the U.S. Eagle, the Canadian Maple Leaf, the Australian Koala and the Australian Platypus. There is only one approved palladium coin -- the Canadian Maple Leaf.
Proof American Eagles are also allowed but are not advisable in a precious metals’ IRA due to vast premium disparities based on different interpretations of numismatic value. The best course of action is to stick with products from the above list that trade at lower premiums.
Transfers and Rollovers
Transferring a traditional or Roth IRA to a gold backed IRA is relatively simple. Alternatively, the term “rollover” actually refers to the rolling over of assets from a 401 (k) plan or some other qualified retirement plan to a self-directed IRA. In these cases, an employee must usually be separated from employment in order to establish a rollover.
Including precious metals in your retirement plan is a good idea, but make sure you approach the task under the guidance of a gold firm that has a good reputation and solid experience in this area. Generally speaking, the guidelines that apply to precious metals ownership outside your IRA also apply to owning the precious metals inside your IRA.
Gold Firms Ahead of Central Bank Meetings
Gold begins the week on pretty firm footing, having retraced much of Friday's intraday retreat. The dominant story in the market continues to be the strong physical demand for gold that emerged as a result of the mid-month sell-off in the paper market.
A weaker dollar is helping to underpin the gold market. The greenback has been pressured by a stronger euro after Italy successfully formed a new government over the weekend. The ECB meets this week and a recent worsening of the economic data have increased the likelihood of a 25bp rate cut.
The Bank of Japan said reiterated its plan on Friday to "conduct money market operations so that the monetary base will increase at an annual pace of about 60-70 trillion yen." However, the market seems to have been hoping for more than the already stated plan to double the monetary base in two-years. The yen rallied, leaving the important 100.00 level against the dollar well protected.
The Fed also meets this week and will announce policy on Wednesday. With the economy continuing to languish, the FOMC is widely expected to hold rates steady near 0% and continue buying $85 bln a month in assets. In light of the recent soft data and hints of deflationary pressures, talk of phased withdrawals of accommodations has diminished in recent weeks.