Before you open up a gold backed IRA, you should understand this financial vehicle fully. Of course, this advice applies equally to whatever type of financial investments you may make, but can you truly say that you understand your 401k fully? How about your CD’s (Certificates of Deposit) at your local bank? You may have heard the term “Significant penalties for early withdrawal” associated with your CD’s so you never even contemplate dipping into them when a need arises, so perhaps instead you take a cash advance on your credit card or sell other assets to cover the unanticipated expense. What if I were to tell you that the “significant penalty” can only be a percentage of the interest you have earned? These days, when a CD only pays a fraction of a percent, giving up a fraction of a fraction is hardly “significant”, but the banks don’t want you to know the rules of the game. ITM Trading does want you to know the rules of the game, and all of them for all of the games that pass for “investment products” these days.

The Cons Of Having A Gold Backed IRA:

First, and in the eyes of many, the biggest problem with buying gold bars and gold coins and holding them inside of an IRA is that you do not physically hold them yourself. While many would say that they feel more comfortable letting others hold their wealth for them, this is truly a new concept, and one American’s of yesteryear did not hold. After the bank runs and ensuing collapses of the 1930’s few Americans trusted the banks. Until the invention of 401k’s in the ‘80’s, the idea of giving a part of your paycheck to someone you had never met to “invest” for you sounded like the premise of a flim-flam man, and perhaps it still is. Let me put this another way. I have car insurance. If you loan your car to me, and I crash it, my insurance will pay the damages. You don’t know me, but can I borrow your car? Different gut feeling isn’t it? The truth of the matter is, you should always be able to get your hands on a portion of your wealth at any given time, and that wealth should have undeniable international value. When banks close and currencies collapse, a debit card or a wheelbarrow full of paper notes will do you no good. If you don’t believe me, consult the  new-fangled internet or an old-fashioned history book, both will have plenty to say on the issue.

Gold Backed IRA’s can be a great vehicle, or they can be the wrong move, each individual’s financial situations and goals are different. Consult with an ITM Trading representative and ask all of your questions, we are here to be of service.