The gold market has been retreating for awhile now and investors are looking at their IRA statements to see how their holdings in precious metals are doing. Many investors are shocked at the value of their account, not because of the recent pullback, but because they made one simple mistake; they listened to someone who told them to buy Proof American Eagle gold or silver coins.
When one opens a Precious Metals IRA, which allows you to acquire physical gold and silver coins or bars for future delivery, they can do so with a 401k rollover or IRA rollover.
What Are Many Precious Metal Investors Told to Buy for Their IRA?
But what many IRA investors in precious metals are led to buy are proof gold and silver coins.
While these proof coins are acceptable under the IRA guidelines, the investor more than often pays 10%, 20% or more in commissions to acquire these coins.
Caveat Emptor
You must understand what you are doing BEFORE you buy.
For those who have bought proof coins, it is quite a dilemma you are in. You bought for the right reasons, but you might have been taken advantage of without knowing.
In fact, it’s not just proof coins that investors in physical gold and silver IRA’s need to worry about. Some gold dealers will charge you 10%, 20% or more for just buying bullion gold and silver coins.
This article has an expanded version where I first wrote it on Seeking Alpha. You can find it here.
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About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
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