If you’re anything like me, your knowledge base of investing in gold correlates directly to the 2003 crime thriller The Italian Job. Starring Mark Wahlberg, Edward Norton, Donald Sutherland, and Charlize Theron, the movie revolves around a Venetian heist-gone-wrong: and the currency being trafficked? Gold bricks. If you haven’t seen the film, I suggest checking it out. If you have, then I circle back to my original point. All I know about gold I learned from The Italian Job. The bricks are pretty, they seem to weigh a lot, they’re stamped with the image of a Balinese dancer. They’re worth a ton. 27 million, to be exact, by the time the team of thieves-gone-good catch up with the loot. Seems like a good investment option, right? About as well-researched as betting on a Triple Crown winner based on the color of the jockey’s silks. Don’t even get me started on horse racing. Seen Seabiscuit?
Yet, though we are no longer on a gold standard, gold is the standard upon which our entire system of currency is based. So what is the real story? Open up your wallet for me. Dig through until you find a one, or a five. See where it says “Federal Reserve Note”? It means that bill is a note of obligation. A promise from the Federal Reserve to pay its value out. In gold. Once upon a time, dollars couldn’t be printed without the actual, physical gold to back it. Now, our paper money is based on our country’s credit - the “full faith and credit” of the U.S. Government. Just like that plastic card in your wallet is based on the full faith of your bank account to back it up. So what happens when the full faith of the U.S. Government is placed in a failing system, looking towards the burst of yet another financial bubble like that which popped back in 2008?
Implemented quite often in recent times, the process and policy of quantitative easing targets the supply of money by buying, or selling government bonds. When the economy stalls and the central bank (read: Federal Reserve) wants to stimulate economic growth, it buys government bonds, lowering short-term interest and increasing the money supply. But when interest rates approach zero, like they did following the global financial crisis in 2007-2008, this strategy loses effectiveness, at which point banks have to implement other strategies to stimulate the economy. To a newbie investor like me, that sounds just fine. But what we’re seeing is that by flooding financial institutions with new money, or capital, what began as a promotion for increased lending and liquidity turned into a massive inflation in share prices.
Which brings us back to gold. Traditionally, we’re taught to play the market. Aggressively, at first, if you get into it in your youth. You have more time, so you can afford to take more risks. As your portfolio ages, risk taking slows, and you begin playing it safe. You’re buying into your 401k, the universal retirement account and general genius idea that drove right on by the more traditional retirement vehicle, (pension), and kept on trucking your investments through mutual funds all tied to the stock market. But here is where the two roads diverge - and where Ron Swanson of Parks and Rec starts to make a whole lot of sense. (“I don’t know how much money I have, but I know how many pounds of money I have.”) While the stock market has gone through a boom bust swing over the last 15 years, gold has gone up over 12- not only in the US dollar, but in every major currency in the world.
Enter Advantage Gold
Most financial companies I’d imagine would argue their case for protecting your financial assets. Advantage Gold is looking to take that one step further. “Not only is gold a tangible asset, it has no counter party or credit risk.” It sounds a little backwards to me, at first. Kinda like trusting my knowledge of gold to the credit of the filmmakers of The Italian Job. But gold has been a store of wealth for thousands of years, and is the only effective way of protecting your liquid assets against inflation and currency devaluation.
Voted the #1 Trusted Gold IRA company on the market by TrustLink, Advantage Gold is looking for clients who are invested in protecting their wealth. Focused on providing their clients with an in-depth education on the entire process of investing in gold, they’d like to draw you out of the national debt crisis cycle, and into a world where you don’t have to worry about your asset liquidity evaporating entirely.
An essential tool for saving for the future, an IRA has become synonymous with tax-free or tax-deferred savings, making it an easy choice when you’re looking at the golden years of retirement and hoping to actually be able to enjoy them. We all know there to be two different types of IRA - a traditional and a Roth. But there is a lesser known IRA out there that Advantage would like to suggest: precious metals.
“By adding physical precious metals to your retirement account, you lower your overall portfolio risk by diversifying your assets, says Adam Baratta, managing director.” Rolling over your existing account is a pretty straightforward process, and you have your choice of metals: silver, platinum, palladium - or if you’d rather go the way of Mark Wahlberg and Charlize Theron, bullion and bars, instead of coins. The categories of gold stock we’re accustomed to hearing about however, typically refer to stocks and mutual funds comprised of companies that produce, refine, and explore for gold. But investing in a mining stock doesn’t necessarily mean that the price of gold going up correlates with the value of your stock increasing.
“With mining stocks, you’re betting on the mining company’s ability to make profits regardless of the price of gold,” says Baratta. Though gold stocks have benefitted enormously since the turn of the 21st century, the meteoric rise in the pricing of precious metals stocks are simply not the same as an investment in physical metals. A gold backed IOU is still an IOU at the end of the day. The investors at Advantage believe we are robbing Peter to pay Paul, kicking the can down the road for the next generation to come up from underneath and stir the toxic cocktail we’ve made from overvalued assets, military conflict, and the uncertainty of a future beneath a national debt ceiling such as we have never seen before. “We specialize in working with investors, not coin collectors. We’re looking at gold as an asset class: and the average size of our investors accounts are larger than that of our competitors.”
Since the turn of the century, our country has needed to raise its debt ceiling regularly. Each and every year since 2002, the U.S. has needed to borrow more money to meet its obligations. And for every trillion dollars of debt, gold has risen $100 per ounce. Even if most of your financial decisions are based on more sound reasoning than the cinematic intelligence of a 2003 crime thriller, isn’t it about time to invest in something with a solid future?
What is a Gold IRA?
A Gold IRA is a self-directed individual retirement account that allows ownership of physical precious metals. All IRAs can give you tax advantages, but several types of IRAs offer different protections and assets. With a Gold IRA, not only can you hold paper assets like stocks and bonds, but you can also hold physical precious metals in the form of coins and bars. Ultimately, it is up to you to decide which types of precious metals you want to be held in your account.
How does a Gold IRA work?
A precious metal IRA (or Gold IRA) works the same as a conventional IRA or 401(k) with all of the same rules especially as they pertain to contributions and tax treatment. The significant difference is that unlike a conventional IRA or 401(k) with a bank or brokerage firm that specializes in bank deposits, stocks, mutual funds, annuities, and other approved assets, you hold physical precious metal coins, bullion, and bars such as gold, silver, platinum, and palladium in an IRA that are held in custody, by an IRS approved custodian, for the benefit of the Gold IRA account owner.
To hold physical precious metal coins, bullion, and bars such as gold, silver, platinum, and palladium in an IRA, you need to open and set up a self-directed IRA (commonly referred to as a Gold IRA). You then fund the Gold IRA account with cash or you can roll over some or all of an existing 401k account into your new IRA account. Then you select a precious metal broker or dealer, as well as an IRS approved depository (custodian). By working with Advantage Gold, the entire process of setting up a Gold IRA is handled for you by one of our IRA specialists.
A Gold IRA is governed by the same tax rules as other IRAs. Your contributions into a self-directed IRA that holds gold and other precious metals can be deducted from your federal income taxes. The precious metals that you buy and hold in your Gold IRA cannot be withdrawn from the account until you reach the age of 59 1/2 years old without tax effects and a 10 percent penalty for the early withdrawal. Investors with a Gold IRA as part of their retirement portfolio must begin making mandatory minimum withdrawals at age 70 1/2 and pay taxes on those withdrawals.
If your Gold IRA is a Roth account, you will be able to make tax-free withdrawals because you were already taxed on the contributions. You also would not be compelled to start pulling money out at age 70 1/2.
Which Retirement Accounts are Eligible for Gold IRA Rollover?
– Traditional IRA
– Roth IRA
– SEP IRA
– Simple IRA
– TSP (Thrift Savings Plan)*
– 457 (B)*
– Pension plan*
– Tax-sheltered annuity
*To qualify, must be from a former employer or for an individual older than 59 ½.
For more information or to connect with Co-founders Adam Baratta and Kirill Zagalsky, call (888) 681-1596 or visit www.advantagegold.com
Advantage Gold is giving away a special edition of Jim Rickards’ latest book, The New Case for Gold to all Community Publications Readers.
It’s simple, fast… and FREE! Just call (888) 681-1596 now and leave your name and address on our voicemail. We will then process your request and rush you your very Gold IRA Investment Kit with our special edition Jim Rickards’ book The New Case for Gold.
Learn how to protect and secure your wealth with gold by calling (888) 681-1596 today!
*Must have a qualified retirement account to qualify.
Supplies are limited.