The Different Ways You Can Own Physical Precious Metals
The following article is created by Orion Metal Exchange for the benefit of our investors and perspective investors alike. We seek to provide relevant content concerning precious metals and the impact caused by the economy and geopolitical trends that will most likely place impact on your financial future. If you are interested in learning about precious metal investing, call 1-800-559-0088, for a FREE investor kit.
Investors typically own physical precious metals to hedge against inflation and geoeconomic uncertainty. Precious metals are considered by many as a requirement to being properly diversified. Precious metals are commonly used to diversify and hedge against market volatility because they have a comparatively low or negative correlation when compared to stocks and paper assets. When the values of other assets decrease, precious metals will likely rise in value and promote portfolio balance and stability.
Precious metals are not prone to mismanagement or mishandling by corporations or government entities. Precious metals are not subject to government policy changes. For example, when you own a gold Eagle coin, no one can borrow or loan against your gold coin. Physical precious metals are free from the risk associated with debt.
Physical precious metal ownership options
1. A precious Metal IRA
A self-directed gold IRA is a retirement account that allows individuals to invest in physical gold and other precious metals. Unlike managed and discretionary IRAs, self-directed retirement accounts offer more flexibility and control over the investment choices, enabling account owners to make their own decisions and diversify their portfolios with precious metal coins. An precious metals IRA account qualifies for the same tax benefits that other IRA accounts do. All contributions to a precious metals IRA account can be taxed deferred and federal income taxes are only applicable if you choose to withdraw value from your account.
As is the case with all IRAs, you cannot withdraw any proceeds from your IRA account until you reach 59.5 years of age without penalty. If you withdraw before 59.5 years of age, you will be obligated to pay a 10% penalty due to early withdrawal.
Moreover, if you were born before 12/01/2022, you are required to make regular withdrawals after 72.5 years of age. If a withdrawal is made from a pre-tax IRA program, a tax consequence will apply. If a withdrawal is made from a post-tax retirement account, the withdrawal will be tax-free, as is the case in a Roth IRA account.
With a precious metal IRA, you have the added ability to withdrawal and receive physical precious metals.
2. Secure Insured Commercial Depository Storage
This service is offered to investors looking to own precious metals without accepting physical delivery. A 3rd party depository can store, secure, and insure your precious metal holdings. The commercial storage facility answers directly to the precious metal owner. This storage program only applies to precious metals acquired outside of an accredited retirement account. With a 3rd party storage facility, you can buy, sell, or exchange precious metals with a simple phone call. We recommend utilizing a 3rd party storage facility that is insured by Lloyd’s of London.
3. Insured Home Delivery
With a phone call, you can guarantee the product and pricing. On a recorded tradeline, you can purchase gold, silver, platinum, or palladium. You will receive a transaction invoice for your records. You can place payment by wire, ACH, or check. You will be notified once we have received your funds, and you will be notified once your purchase has been shipped. An email tracking number will be sent to you once your order has shipped, and you will be able to track the insured package to your doorstep.
What are the benefits of owning physical precious metals?
Owning physical precious metals offers several benefits, including diversification of investment portfolios, protection against economic uncertainty and inflation, and a hedge against currency devaluation. Additionally, precious metals have intrinsic value and can serve as a store of wealth over the long term.
What role do reputable dealers play in acquiring physical precious metals?
Reputable dealers like Orion Metal Exchange play a pivotal role in acquiring physical precious metals by providing trustworthy sources, ensuring authenticity, and offering expert insight on investment options and market trends. They also offer competitive pricing, secure transaction processes, and reliable customer support to facilitate a smooth and trustworthy acquisition experience.
How can diversifying with physical precious metals enhance an investment portfolio?
Diversifying with physical precious metals enhances an investment portfolio by reducing overall risk through non-correlation with traditional assets like stocks and bonds. They historically act as a hedge against inflation and economic downturns, providing stability during market volatility and protecting against currency devaluation and geopolitical uncertainty.
Orion Metal Exchange presents this article for both our investors and perspective investors, offering insights into precious metals and their relevance amidst economic and geopolitical trends. To explore precious metal investing further, dial 1-800-559-0088 for a FREE investor kit.
