You can invest in precious metals such as silver, gold, palladium, and platinum in many ways. One way through which you can do it is through precious metals IRA. A precious metal IRA from http://2gov.org/gold-ira/precious-metals/ refers to an Individual Retirement Account in which metals that have been approved and stored to secure your financial future. Of all the precious metals, silver and gold are the most popular metal used in IRAs. There are many benefits, which a one can potentially enjoy from a precious metals IRA, some of which have been discussed below.
Benefits of precious metals IRA
It offers an excellent opportunity for a tax-deferred growth
One of the main benefits that you can derive from an IRA is the ability to make an investment on a tax-deferred basis. You can take a good percentage of your earnings up to a specified limit, and use it to invest in an IRA account. By doing that, you will not pay tax on those invested earnings.
In addition to that, the capital appreciation that you will enjoy from your IRA account will not be taxed until you make withdrawals. In other words, the income tax that you pay will be reduced while your investment grows on a tax-deferred basis.
You can buy many types of coin and bullion bar within your IRA account
Strict guidelines have been set to determine the types of precious metals that can be purchased in the IRA account. However, there are many other products eligible for IRA, which come in forms such as coins and bars. Bullion and coin products are among the highly recognized and liquid products. Being able to purchase them from your IRA account will work to your benefit.
Your precious metal is stored well for you
Purchasing precious metals within an IRA account requires that the metals be stored in a depository that has been approved. The approved locations are usually very secure, equipped with the best and latest security features. Your precious metals will be accounted for and perhaps even insured. This eliminates all your worries related to storage and safety.
You receive detailed account statements on a regular basis
You must have a third party IRA custodian with whom you will open an account with, after purchasing precious metals within an IRA account. The custodian is going to take care of all transactions related to your precious metals and provide regular account statements. You will have exact knowledge of your holdings and their approximate value, at any given point.