Gold IRA and silver IRA are the safest, most stable way to protect your retirement savings. Physical gold and silver assets hedge against inflation and the impact of the looming recession.
With Former Boston Federal Reserve President Eric Rosengren saying in a recent interview that the US is going to enter a recession as early as 2023, and the current inflation rate at an all-time high of 8.2%, you have to seriously start thinking about looking for an IRA custodian or the best gold IRA company to protect your retirement funds.
Investing in gold bullion and silver coins will protect your hard-earned money from the long-term effects of inflation, market instability, and correction. The sooner you do a gold IRA rollover, the better.
Consider this: in November 2022 the value of gold is around $1700 an ounce, while silver is $20.75 an ounce. When the recession hits, the prices of the physical precious metals will steadily increase right up to the subsequent market corrections. Augusta Precious Metals has predicted prices of gold coins, American bullion, and proof coins to hit around $1800 to $2000 per ounce during the recession, and about $3000 during the market corrections in 2028. For silver eagle coins and other silver IRA approved products, the prediction is $30 during the recession and $50 by 2028.
This means that if you don't invest in a precious metals IRA now, your traditional IRA, Roth IRA, or SEP IRA will take a hit from the recession, since you don't have a silver or gold IRA to hedge your portfolio. Also, in the future when you buy gold or silver, the precious metal would be 30-40% more expensive than it would have been today.
Gold IRA | Silver IRA |
|---|---|
Higher Resale Value | Steady resell value |
Easier to trade | Has more industrial applications |
More expensive to buy into | Cheaper buy-in |
Has higher storage fees | Low maintenance fees |
Does Fidelity Have Gold IRA?
Fidelity does not have a gold IRA. However, it offers investors a bit of exposure to the gold market by investing some of their portfolio in gold-related paper assets and physical gold. Fidelity Select Gold Portfolio invests more than half of its assets in physical gold, while the Fidelity Advisor Gold Fund allocates around 30% of its portfolio in precious metal IRAs.
You can buy your first gold coin from these reliable gold IRA custodians and brokers: Birch Gold Group, American Hartford Gold, Augusta Precious Metals, Regal Asset, Noble Gold, Oxford Gold Group, Goldstar Trust Company, Equity Trust, Advantage Gold, Patriot Gold Group, Gold Eagle, Lear Capital, and Kingdom Trust.
What is the Gold and Silver IRA Contribution Limit?
The contribution limit for gold IRA vs silver IRA is the same: $6000/year in 2022. If you are 50 or older, the limit goes up to $7000/year. For 2023, the IRS already confirmed that the limit will be $6500/year, and $7500 for people 50 and above.
The contributions are capped by United States federal law so that high-income individuals will not get more tax advantage than the average worker. The limits change every year, depending on factors like inflation and market stability.
To understand why these contribution limits are in place, you must first understand how gold and silver IRAs are taxed. You have two options: traditional IRA or Roth IRA. A traditional IRA is tax deferred, meaning you don't pay taxes on your funds until you retire and start making withdrawals. A Roth IRA is set up with funds that have already been taxed, so all future distributions/withdrawals are tax free.
Without the contribution limits, high-income earners can take unfair advantage of the tax benefits of gold IRAs. They can easily pay tax upfront and enjoy larger, tax-free distributions later on, as the value of gold or silver compounds. This gives them an unfair advantage because regular earners will definitely feel the pinch if they pay taxes upfront, or in some cases, they will be forced to invest less so their investment budget can cover taxes as well.
There has been some debate over whether contribution limits should be raised, but Forbes Magazine said that this does not benefit the average American worker, and the future economy. The Federal Reserve income reports also do not support the idea of raising contribution limits. Both say that only around 50% of middle-income wage earners have retirement accounts, while 80-90% of the high-income wage earners have them. Moreover, the average annual contribution of middle-income earners is about $4000, which is way below the current limit.
How Does a Gold and Silver IRA Work?
Gold IRAs and silver IRAs work by protecting your portfolio from inflation, deflation, and market correction. They are slow moving, less volatile assets that hold their value through political turmoil, stock market upsets, and global financial crises. Physical precious metals like the gold American Eagle coin and the American Silver Eagle are assets whose value is dictated by real world prices, and therefore are much less vulnerable to collapse.
A precious metal IRA account can be set up using a Roth gold IRA or traditional IRA. You simply need to move some of your existing retirement funds, like your 401(k), to your IRA gold account in a process called an IRA rollover. From there, you can buy physical gold, silver coins, and other precious metals.
What Are the Benefits of a Gold IRA?
The major benefit of having a gold IRA account is protection against inflation. According to CNN, the S&P 500 is down by 18% YTD, and inflation has hit a 40-year high. With the geopolitical chaos that's going on between Russia and Ukraine, the post-pandemic recovery, financial institutions are no longer talking about whether the recession will happen, but how long it will go for and what steps investors can take to minimize the impact. A precious metals IRA gives your portfolio the stability that the stock market, cryptocurrency, and NFTs simply cannot.
Gold bullion and silver coins are tangible assets whose value is globally recognized. As Robert Kiyosaki said, "My answer is always to buy more gold and silver. It's not an investment, but I buy gold and silver for one reason, because if push comes to shove, I can spend it anywhere in the world."
Many individuals, who unfortunately had to flee because of the Russia-Ukraine war, were only too familiar with this reality. Once international payment systems like Swift cut Russia off in May 2022, people who needed to flee turned to cryptocurrency to get cash, only to see the value of cryptocurrency plummet because of the high demand. At the end of the day, only hard assets mattered and had real value.
Conclusion
"The biggest crash is here," Robert Kiyosaki said, as the stock and bond market combined have lost roughly 40 trillion dollars in value since 2020. "The time to invest in hard assets is now," the billionaire investor continues. He explains that once the crash deepens, it will be too late and too expensive to buy physical gold, and you will be left hoping that those stock certificates will still have value when you retire.
Jim Cramer, the CNBC financial guru and host of Mad Money, echoes Kiyosaki's sentiments and adds: "Gold is poised to rally, making now an optimal time for investors to pounce." He suggests that precious metals IRA is not just a hard asset that you can use during calamities, it also presents a profit opportunity if you invest now.