First of all, before we dive into the world of gold IRA, we must know why this precious metal matters so much. Why gold, out of all metals, has the biggest attention. Maybe because, unlike other metals, conducts electricity and heat easier. It is very workable and can be melted into bars, jewellery and doesn't rust or corrode as time goes by. But, the most crucial question is why gold, compared to other metals, has caught human's eye for being a medium of global exchange?

What is a gold IRA?

Like every person who likes to invest and have assets like stocks, they have to have an account where to hold them. It's the same for when it comes to holding an actual bar of gold somewhere safe. This is where the gold IRA comes into play. Suppose you don't know what it means. In that case, the simplest explanation is that it is a type of individual retirement account that lets investors hold precious metals.

How does it work?

If an investor wants to open a gold IRA account, it must be done through a broker-dealer or custodian. It can never be opened by the investor himself. This account has to be held separately from any other IRAs. Most of the time, a custodian will be the one who will offer it. They are the ones who can manage the paperwork and taxes for any gold transactions. But, it doesn’t stop there.

To have an account, you would have to have gold, funny enough. Whoever has the account cannot buy any precious metals. For that, you need a dealer for metals that will actually purchase them for your account. Most of the time, one will be recommended by your custodian. Just like any other account, this one, as well as its own standards that you'll have to meet.

Also, one of the main things that you have to consider is that you need to have storage space. It could be a bank, but it cannot be stored at your home. Follow the link for more

Is it a good idea?

With saving money, you can never be sure if it's going to lose its value. On the other hand, this precious metal can give you peace of mind knowing that you have some kind of control regarding your financials. Its value doesn't go down. In fact, its inflation rate has gone up significantly. That’s why it’s recommended to keep your precious gold in a bank.

We deal with many things daily, such as insurance companies, many sudden situations that can cause a stir. Still, when you know you've secured yourself with some type of savings like the IRA, you can put your mind at ease knowing you take some kind of action to help yourself and others. It’s a good way of having that kind of control in your life. Find out more here.

At the same time, like with everything else in life, it's not perfect when it comes to this. You have to be aware that with these types of investments come certain risks. Unlike the other savings accounts, this one tends to have higher fees. You have to pay off your custodian, as well as the shipping and transport of the metal. Another thing that you have to keep paying off is the fees for the storage and insurance fees.

What precious metals can you invest in?

As the name says, the main metal that you can invest in is gold. But, that's not the only precious metal that you can keep in an IRA. It depends on what kind of metal resource we are talking about and what we are planning to invest in. Many other known precious metals such as silver, palladium, and platinum can be invested in. Every metal, when invested in, has its own standards that you have to follow for you to gain something from it.

One thing you cannot invest in is "collectables." Every metal that you tend to invest in has to meet the requirements for the purity test for it to be accepted in an IRA account. With everything that we said before, whatever you plan to do, either invest in a gold IRA or not, make sure you are aware of the pros and cons.