Investing In Gold: A Traditional Investment

Funding your 401(k) with regular investments can be risky. A few years ago, back when recession hit, many people lost nearly half of their 401(k) plans due to declining investments. It’s not a secret that investing in the stock market can be risky, or that CDs and bonds do not adjust their value to inflation. It’s common knowledge that even if the economy is not in a recession, there’s always a risk when dealing with your typical equities. So, if the average investing options remain potentially volatile, what is a sound investment for your retirement? What would be something that is always relevant and maintains a worthy value? The answer is gold. Of course, one cannot simply use a treasure map to search for that chest of gold bullion hidden beneath the sparkling sand of a remote island. While this option is exciting, our modern world requires something a little more direct and professional.

License: Creative Commons image source
License: Creative Commons image source

Precious metals have historically been a high-priority investment. A
ll over the world, including America,  major gold rushes took place in the 19th century. These were adventurous pioneers in search for permanent wealth. So why not convert your 401(k) to gold in the twenty first century? If you were to continuously invest in gold, you would be earning money no matter what time period you lived in. While many people scramble to be the next hotshot on Wall Street, you should remember that gold is always a sound and worthy option.

Bear in mind that if you want to rollover your 401(k) into gold, you’ll need a company that allows you to purchase precious metals. While there are several options (gold, silver, platinum, precious gems, etc.), it’s gold that is the most valuable of the metals when thinking in terms of investments. Platinum is worth more, but gold is what money is backed by. There are two types of gold that the United States presently allows to be invested into an IRA account. The government allows Gold American Eagl
es and Gold Proof American Eagles. Furthermore, there are three institutions setup to handle precious metals for retirement planning: Sterling Trust, Goldstar Trust, and Entrust. The price of gold fluctuates and is directly related to the investors who buy and sell the gold.

There are three easy steps to make it happen…

  1. Submit the paper work.
  2. Fund the account.
  3. Tell your broker which precious metals to buy.

Steps one and two will be completing the proper paper work with your financial custodian. Funding will typically be derived from your existing IRA or Qualified Retirement Plan. In step three, you will choose which precious metals you’ll be investing in.

It’s really not that difficult and what’s even cooler about investing in gold is you’ll be able to withdrawal actual gold. The gold is stored in a proper storage facility and when the time comes you can pack it into a suit case or genuine, old-fashioned money bag.

About the Author: For over 20 years, David Simmons has worked within the financial sector as an advisor; instructing his clients for better investment opportunities. To find out more about investing for your 401k, or retirement plan visit for more info. 

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