In February of this year, CNN reported that a dozen states were considering using gold as an alternative legal currency. The first state to implement the use of gold and silver as legal currency was Utah and the trend is now picking up momentum across many states.
This trend has become so obvious that even Steve Forbes of the famous Forbes magazine now predicts that the US will be back on the gold standard within five years. This despite the fact that Ben Bernanke, the chairman of the Federal Reserve, continues to insist that the US will remain on a fiat currency and that a return to the goal standard is not feasible. Today many congressmen and state legislators who are considering a return to the gold standards as much more than a mere pipe dream.
How Does This News Affect You?
What does this emerging trend favoring the possible return to a gold standard mean to you as you plan for retirement?
In my opinion, gold may prove to be one of the best retirement assets you could invest in. Along with the traditional assets associated with an IRA, such as stocks, bonds and annuities, you may want to consider adding gold investments into your portfolio.
After all, gold is an asset that does not rely on how well an institution performs in the market. Charles DeGaulle, the former French president, is well-known for pointing out that gold does not have a nationality and that is it is accepted across the world as an asset of high-value.
How, then, do you add precious metals into your retirement account?
The first thing you have to do is choose an IRA structure that will allow you to add gold investments to your portfolio. A self directed IRA will give you this flexibility because you will have the capability to invest in physical gold.
In order to get started, you need to find a trust company that will set up an IRA for you.
How To Buy Gold
To buy gold, you will need to conform to the Internal Revenue Code for precious metals. Fourfold purity standard is .999. One exception is the American Eagle gold coin where the purity standards is .916 net fine.
You’re free to decide whether you want to purchase bullion coins or bullion bars. If you choose to purchase bullion bars, they must be made by refiners who have been exchange approved.
Here is a short list of approved gold bullion coins available from one troy ounce to 1/10 troy ounce:
• The U.S. Eagle
• The U.S. Buffalo
• The Canadian Maple Leaf
• The Australian Kangaroo
• The Austrian Philharmonic
This raises an interesting question, what about the proof American Eagle? Here’s my take on it: while these are allowable under a self directed IRA there are many disparities and interpretations on their Numismatic value. For this reason, you maybe be better off sticking to the short list provided.
In conclusion, as the monetary value of fiat currency falls, the value of gold will likely rise. It is highly probable that gold will play a significant role as a valuable asset in the future. It may make all the difference to your retirement to factor in gold investments into your portfolio.
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