“Despite the setbacks that have occurred in the markets as a result of the recent global recession, stocks and equities have always shown the ability to provide the best return over the long run compared to any other investment,” says Gelfman.
The public has been exposed to an increasing amount of advertising from precious metals dealers who seek to convince people that investing IRA funds in gold is a smart move, but there is speculation among analysts that gold has already peaked. Gold prices have dropped some 15 percent since hitting a record high in August, while the S&P 500 index rose about 10 percent over the same period.
Although some predict a rebound for gold amid continuing financial turmoil, there is widespread belief that its price has not reached its bottom so an entire year’s gains could be nearly erased, or worse. Comparisons have been made to the gold-price spike that occurred in 1980, which was followed by a gradual 20-year descent in gold prices which practically reached the level where they started.
Putting gold into an IRA is a fairly complex process, and currently no major brokerage house offers this service. Only a self-directed IRA, which must be administered by a separate custodian, can invest in gold. The physical gold itself cannot be held by the investor and must be stored in an approved depository. Both the IRA custodian and the depository charge fees for their services.
“If you do want to allocate part of your portfolio to gold, there are easier ways than buying the physical metal, such as investing in gold mining stocks and gold-based ETFs,” says Gelfman.
E1 Asset Management is a
E1 Asset Management
David Gelfman, 786-398-4251
Source: E1 Asset Management
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