Can You Use Precious Metals for Retirement Savings

This post may contain affiliate links and I may receive a small commission if you make a purchase using these links – at no extra cost for you. Please read my disclaimer here.

When most people think about investing for their retirements, their minds immediately go to things like stocks, shares, crypto, and even property.

While it’s common knowledge that precious metals can be a sensible investment, it’s unknown to most that they can also be an effective way of saving for one’s retirement.

If you are somebody who is interested in investing in precious metals, then this post is for you. In this article, you will find out whether or not you can use precious metals for retirement savings, what metals to look at, and how to get started.

Saving for retirement

It’s common for young people not to think about their retirement. Why would they, after all?

Can You Use Precious Metals for Retirement Savings

Very few people don’t even know what they’re going to be doing tomorrow, let alone in 50 years. However, if you do not save for your retirement then you could end up in a very bad situation. 

Government pension plans do not pay a lot of money. After a lifetime’s worth of work, then spending your retirement in poverty is not a good way to finish your life. Planning for retirement will allow you to live comfortably when the time comes.

Opening an IRA

In answer to this post’s titular question: Yes, you can use precious metals to save for your retirement.

You can work with a gold IRA company, open an account, and start saving precious metals. IRA stands for Individual Retirement Account. When you open such an account, precious metals (like gold, silver, or platinum) are held in custody for you. 

Then, as their price appreciates, so too do your profits. When you are ready, you can liquidate all of the assets that you hold in the account and take your money.

Other forms of investment

While precious metal IRAs are indeed an extremely effective way of saving money for your retirement, it’s also a good idea to invest in other ways too.

Investing all of your money in one thing can be a very bad idea. Experts advise investing in four or five different things. It’s also a good idea to hold a cash savings account, too. 

You can put money in a maturation savings account, which you usually can’t access until the money held within has totally matured.

Hiring investment planner

If you are struggling to figure out what you want to invest your money in besides precious metals, then it’s a good idea to hire an investment planner.

An investment planner will be able to work with you to create a unique plan, tailored to your needs and interests.

Before hiring a planner, shop around and do your research. There are many different planners available to work with online.

If you don’t find the one that’s right for you then you could end up making bad investment decisions. A bad investment decision could lose you a lot of money.

Which metals are best?

Some metals are better than others. If you’re interested in opening a precious metals IRA, then you need to figure out which metal is going to be most beneficial to your retirement pot.

Most people’s minds immediately go to gold, but there are other precious metals that can be just as lucrative, if not more so

Before you make a decision about which precious metal you are going to invest in, it’s a very good idea to spend some time researching different metals and figuring out which one is going to appreciate most.

Gold

When planning for retirement savings, considering precious metals like gold is a prudent choice. To start securing your future, explore the option to buy gold here which offers a range of trusted and reliable precious metal investment opportunities.

Gold is, of course, the most popular precious metal, at least as far as investment goes. People tend to think that gold is a stable investment, mainly because it has held its value historically

Gold

And, to be honest, it is a stable investment. While gold sometimes fluctuates, it typically does hold its value. When the price of gold plummets, within a decade it tends to rise again. 

If you are going to invest in gold then it’s a good idea to buy the highest-quality gold that you can. The better quality your gold is, the more it’ll be worth. Pro tip: use a reputable company like Goldco to make sure you get only the highest quality gold bullion.

Silver

Silver is another metal that’s commonly invested in, again, because it usually holds its value.

That said, silver is worth significantly less than gold. This means that you can buy a lot more of it. Analysts predict that in the coming years, silver is going to appreciate rapidly, perhaps doubling in price

If you buy a sizable amount of silver now, then when this does happen (or if this does happen) then you could stand to earn a lot of money. Silver is used industrially, which is part of the reason for why people predict it’s going to increase in value.

Platinum

Platinum is another metal that’s used industrially. Lots of precious metal investors invest in platinum, mainly because it’s massively overlooked, and has increased in value significantly over the last century.

Analysts, like with silver, predict that its value is going to skyrocket in the coming years. If you are going to be investing in silver and platinum, then it’s a good idea to buy gold too. 

Holding as many precious metals as  you can afford to will mean that if one decrease in value, your investment will still be worth something, and you won’t lose all of your money.

Precious gems

You don’t just have to invest in precious metals. You can also invest in precious gems.

Precious gems

Precious gems are a bit more unpredictable (and much more expensive) than precious metals, though. If you are going to buy some, then you need to spend a lot of time researching, so you can find a reliable company to buy from. 

If you end up buying phoney gems, you might not be able to get your money back. Fraud is common in the world of precious stones

Only ever buy from licensed jewellers with good reputations, ideally in an area of your city that’s known for sale of jewellery.

Getting started

If you do want to start using precious metals for your retirement, then obviously, you need to open an IRA.

Again, you need to shop around and find the account that’s best for you. There are a lot of companies offering IRAs today. If you don’t spend some time researching, then you could end up working with one that doesn’t offer the best deals.

Make sure to read a company’s reviews before working with them. A company’s reviews will give you an idea of what they are going to be like to work with.

Opening account

When you open an account, you will be required to provide personal information, such as your birthdate, address, etc.

The process of opening an IRA is relatively straightforward. Make sure that all of the information that you provide is correct. If you provide incorrect information, then you could end up having your application rejected. 

Getting rejected won’t stop you from applying again, but it could prevent you from being to apply again right away. Credit checks are not performed when you apply for these accounts, so a rejection won’t show on your report.

Physical metals

In addition to opening an account and holding metals there, if precious metals interest you then you might also want to consider buying some and storing them at home.

Make sure you do not store more than a few thousand dollars worth at home, though. If you store too much at home, you naturally run the risk of having it stolen.

If you will be buying and holding precious metals at home, it’s always a good idea to take out an insurance policy

If you insure your precious metals, then if they are ever stolen or lost, you’ll be protected and won’t have to worry about footing the bill yourself.

Other investments

Are there any other investments that you want to make? As mentioned earlier, it’s a good idea to invest in a few other things besides precious metals.

Investing in other things will boost your retirement pot. It’ll also mean that if your precious metals lose value, you don’t lose out totally. 

You can never be 100% sure that your investments are going to appreciate in value, of course, but by making sensible investments, you can reduce the inherent risk present in investing by large margin

Again, consider working with an investment planner if you want to make other investments but aren’t sure what to invest in.

Thinking ahead

Finally, make sure that you always think ahead. You aren’t going to stay young forever. Investments aren’t the only way of preparing for retirement

Thinking Ahead

You also need to take care of your health and try and pay off your house. Paying off your house before you retire will help you to live comfortably.

If you still have mortgage payments hanging over your head post-retirement, then you’ll never be able to live comfortably, or you will have to take a large chunk out of your retirement pot and use it to pay off the remainder of your mortgage.

Final words: Can you use precious metals for retirement savings

Retirement is always something you need to think about. Everybody retires someday

If you want to prepare for yours effectively, then make investments. Precious metals are definitely worth investing in. You can invest in them by opening an IRA, as this page has already explained.

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}