I was recommended from a friend that I should consider switching my current IRA to a Gold IRA. She sent me a link and told me to consider switching over to Regal Assets. I haven't searched around a lot but I was wondering if anyone had some experience working with this type of IRA. I've been putting money into my IRA for many years now and am concerned about our current economy. What is my best decision?
The link you originally included had an affiliate code included (now removed). It is likely that your "friend" suggested the site to you because there is something in it for your "friend" if you sign up with their link.
Seek independent financial advice, not from somebody trying to earn a commission off you.
Don't trust everything you read online – again, the advice may be biased. Many of the online "reviews" for Regal Assets look like excuses to post affiliate links. A handful of the highly-ranked (by Google Search) "reviews" about this company even obscure their links to this company using HTTP redirects. Whenever I see this practice in a "review" for a web site, I have to ask if it is to try and appear more independent by hiding the affiliation?
Gold and other precious metal commodities can be part of a diversified portfolio, a small part with some value as a hedge, but IMHO it isn't prudent to put all your eggs in that basket.
Look up the benefits of diversification. It isn't hard to find compelling evidence in favor of the practice. You should also look up the benefits of low-fee passively-managed index funds.
A self-directed IRA with a reputable broker can give you access to a wide selection of low-fee funds, not just a single risky asset class.
Advantages of Gold IRA (regardless of where you're holding it):
- You own physical gold (or silver).
Disadvantages of Gold IRA:
- You own physical gold (or silver) that you're not likely to ever actually hold in your hands.
- You'll pay a lot of fees and commissions without any real ability to switch providers (because moving your physical metal from one provider to another will make it even more expensive)
- You'll pay a lot in arbitrage
- You'll have significant portion of your retirement funds tied up in physical posessions with relatively low liquidity (unless you agree to sell to your provider, which will very likely be at prices well below the market).
Instead, you can invest in trust funds like SLV (The ETF for silver) or GLD in your regular brokerage IRA. These funds negotiate their prices of storage, are relatively liquid, and shield you from the dangers of owning physical metal while providing opportunity to invest in it at market prices.