Physical Gold Vs. Gold IRA: Advantages & Disadvantages

Physical Gold Vs. Gold IRA: Advantages & Disadvantages

There is absolutely no doubt in my mind that you have heard quite a lot about the value of gold and that you know just how useful it could be for you to buy and store some. This could help you secure great financial stability in your future, i.e. in those years after you stop working and retire in order to enjoy life in a different way. It is undeniably a rather popular opportunity and people have been taking advantage of it for quite some time now.

You’re thinking of doing the same thing, aren’t you? And yet, there is one thing that’s stopping your from making your final decision and figuring out how to do this the right way. In the simplest words possible, you have heard that there are some differences between gold IRA and physical gold, as further explained at, and you want to find out which option would be best for you.

Well, making such a decision certainly won’t be easy. It could get a bit easier, though, after you learn about the advantages and the disadvantages of those two specific options. So, that is what you should focus on doing right now. And, if you’re ready to find out more about those advantages and disadvantages, then you should simply read on, because I’ve tried to give you clear explanations on both the good and the bad sides of those two different options.

Of course, the actual decision will ultimately be yours to make, meaning that it is all up to you. Yet, figuring out how you can benefit from these two options, as well as figuring out their bad sides will undeniably help you make that decision. You’ll get a better idea about how both of those different solutions work, and you’ll be much closer towards deciding which one could be perfect for you.

Advantages Of Owning Physical Gold

Advantages Of Owning Physical Gold

Let us begin with physical gold first, and talk about the advantages of holding it that way. First things first, the clear advantage here is that you will have immediate access to the assets you buy. This is a good option for people who already have some retirement savings accounts opened and who aren’t keen on doing those rollovers and transferring the funds to IRAs. It is perfectly fine for you to be reluctant about doing this, because the process can be a bit complicated sometimes.

Thus, avoiding the rollover process and being able to physically hold the coins in your home are definitely two great advantages of using this specific option. Portability is another great advantage, because you can easily take your assets with you if you decide to move, or if you’re worried about leaving it at home when you are traveling. Thus, you have more control over the actual storing process, and you’ll always do your best to choose the perfect storing place for the assets that you have bought.

Disadvantages Of Owning Physical Gold

Probably the biggest disadvantage of buying physical gold coins is the actual question of authenticity. You could easily get scammed into buying counterfeit coins, especially if you don’t have much experience with this particular process. Even people with vast experience can sometimes get tricked into buying counterfeit coins, meaning that you’ll need to be extremely careful if you decide to do this. You will need to spend some time learning about how to recognize authentic coins, and the truth is that you’ll probably never be 100% sure of their authenticity.

Another great disadvantage that you need to be aware of is the risk of having the coins damaged or stolen. This is certainly a great risk. You could spend a lot of time finding the perfect storing place in your home, and there will still be a chance of your coins getting stolen or damaged by people entering your house. Of course, I know that you will take all the necessary precautions, but the truth is that this risk will always be there, and you won’t have much peace of mind while holding the coins in your home.

Disadvantages Of Owning Physical Gold

Advantages Of Gold IRA

You are aware of the advantages of buying gold in general, and some of those are listed in this article, and we’ve talked about the physical coins already. So, it is now time for us to proceed towards explaining the gold IRA option, and helping you figure out the advantages and the disadvantages of that particular solution. Let us begin with the advantages.

First of all, your assets will be much more heavily protected with this particular solution, meaning that you won’t need to worry about theft or damage. Another thing that is great about this option is the fact that you can transfer your funds from an existing retirement account with no taxes. So, you will get the opportunity of diversifying your portfolio without actually having to pay any excess taxes.

Diversification in itself is a great advantage to keep in mind. If you put all your money in just one asset, you are risking losing everything quite quickly. So, by adding gold to the mix, you will actually diversify and create a much safer future for yourself. It is also worth mentioning that this solution provides you with the possibility to accrue gains tax free. As you can see, there are quite a lot of advantages to this solution as well.

Disadvantages Of Gold IRA

Now that we are all aware of the benefits of gold IRAs, it is time to have a look at the disadvantages as well, because you need to be aware of those too in order to make your decision. The lack of physical access is definitely one of the biggest disadvantages. You know that you own gold, but you’re never really able to hold it in your own two hands, which can be a bit weird for most people. Additionally, the fact that you’ll need to pay certain storing fees is also a disadvantage, and so is the fact that there is a lot of paperwork involved.

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Noor Ul Huda

About the Author: Noor Ul Huda

Noor Ul Huda Naeem is a Computer Science student. She is also a blogger focused on Meaningful & Core-Bases Youth Development of her country particularly in the domains of Technology, Entrepreneurship, Self-Awareness, Education & Relationships.

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