Tag: investing in gold
Gold IRA Investing – The Most Tax-Efficient Way to Own Gold
Jason 0 Comments Retire Wealthy Retirement Planning
Hi, this is Evan Hutcheson again and today
I’m going to talk about investing in gold and one of the most tax efficient ways to
do so. There are a lot of ways to invest in gold and you can go into Google and google
different things. Here’s Forbes, talking about “Four Ways To Invest In Gold,” there’s
countless sites, just like there is for everything else. Gold has kind of lured investors for a long
time, probably for centuries, for its rarity and its beauty.
Which explains why nearly
half of gold demand worldwide is by the jewelry industry. Another 32% of gold is for gold
bars and coins, otherwise known as gold bullion. Investment in gold bullion in 2004 would have
provided a pretax annualized return of over12% over the ensuing 10 years, so it’s usually
a pretty good investment. But the return is not without its risks. Over the past several
years, gold prices have dropped dramatically. In 2012, investments in gold would have returned
a annualized pretax loss of over 14%, so it can hit pretty hard at times. For tax purposes,
physical gold investments are classified as collectibles, which is a little bit worse
of a classification than capital gains. So, gains on collectibles held over one year are
taxed—held for one year or less, are taxed as ordinary income. Now these long term gains,
held for more than a year, normal capital assets would be, would get the preferential
rate for the long term capital gain. But since gold is a collectible, it’s going to be
taxed at the maximum collectible rate of 28%, which is a lot higher than the 15% long term
capital gain rate that applies to capital assets.
So, when you’re looking at what I said earlier
that it’s had an annualized return of over 12%, that declines to about 10% on an after
tax basis. So, if the gold had actually been classified as a capital asset, then the after
tax return would have been nearly 11%, so it drops a whole percentage just because of
the collectibles tax rate. And to make matters worse, losses on collectibles, so if you lost
on the gold, they are used to reduce capital gains first of all. So you’re using your
loss against a more, you know a lower tax rate, which is obviously not what you want
to do because when you’re incurring a loss, you want to use the highest tax rate possible. So what a lot of people have done is, in order
to maximize aftertax returns, a really efficient way, an efficient vehicle for investments
becomes very critical. And what a lot of people have done is to put the gold into an IRA.
This helps out a lot with you, you know when you do the aftertax return on gold. And it’s
not just with gold. You can do it with other metals: silver, platinum pretty much any type
of rare metal.
This is fairly new. The history of investing in Gold—there’s a lot of
different instruments you can use. Before you were able to use an IRA, you could use
cold coins you can use closed-end funds, mutual funds and so forth. Back in, when FDR was
president, he made it illegal to own more than a small amount of gold at a time because
he wanted to avoid these hoarders, these gold hoarders who he thought and other people thought
were stifling the economic growth. So this restriction lasted for more than forty years.
It was finally lifted in ’75, 1975. And now there’s like I said a whole lot of different
ways you can invest in gold. IRAs pretty much the newest way and it’s, when the IRAs were
first allowed in 1974, the investments in collectibles were prohibited.
The intent of
that, the intent of the restriction was to reduce the risk, the speculative risk taking
in retirement savings accounts. An exception to this rule was introduced in ’86, that
allowed US gold and silver coin investments. In ’98 the exception was expanded to include
bullion that is over 99.5% pure and in ’07 the IRS ruled that gold ETFs were not collectibles
for IRA investment purposes, which was a huge advancement, a critical step in making this
more beneficial. And it’s just like a normal IRA investment so when the gains from the
gold sold within an IRA are not going to be taxed until the cash is actually distributed
to the tax payer, and it’s at the tax payer’s marginal tax rate. So it’s very different
than most investments, you know it’s an IRA, an Individual Retirement Account.
You’re
able to use gold for its most uh, use it in a very beneficial way which is not what’s
been going on in the past. So it’s a big change, a big benefit now and a lot of people
are doing it. I hope that clears up, hope you can understand
a little bit If you are interested in investing in gold, maybe you should look in the direction
of either using your IRA or opening an IRA with gold being one of the investments..
Why You Shouldn’t Buy Physical Gold And Silver
Jason 0 Comments Retire Wealthy Retirement Planning
– And what I found out was
that the gold and metal shop that I bought this bar from,
they knew what this was. They knew it was worth less,
but because I was in there asking questions, trying to
learn, trying to get educated by people who I thought were
experts that were on my side, well, they basically took advantage of me. Hey, welcome back, it's Nolan Matthias. And today I'm going to tell
you about the stupidest and probably the coolest
investment I ever made. But before we get into
it, do me that favor, hit that subscribe button,
hit that notification button and please hit that like button so more people like you can see this video.
Okay, so let's get into it. What is the stupidest
investment that I've ever made? And quite frankly, also the
coolest investment I ever made. Well, it's this. It's buying physical gold and silver. This is honestly one
of the coolest things, being able to sit here and hold basically in this pile alone,
$5,000 worth of silver, and having a little bit of
gold kicking around as well. This is really cool. And this is an investment that
started for me back in 2014 as silver prices were starting
to come down as the fear from the financial crisis
was coming out of the market and as there was starting to become more and more deals on buying
physical silver and gold. And this was nothing that I ever expected that I would invest in myself,
but it came about as a result of an investment newsletter
that I was subscribed to that was all based around value investing.
And value investing is the type of investing that Warren Buffet does. So finding companies that are worth a lot that are undervalued
and investing in those. And that investment strategy
is where the similarities to Warren Buffet ended
because they also got into the piece about
having precious metals as a hedge against inflation
and currency devaluation and also holding it physically rather than in certificates or in ETFs, so that if anything ever
happened in a country that you lived in and
you wanted to bug out to a different country,
much like the Jewish people had to do in Nazi Germany
during the World War II, well, physical gold and silver was
the best means of doing that. Now physical gold may
have been a good means of being able to transport
money over borders, which by the way, I'm not recommending, but physical silver certainly isn't.
You know, this is about $5,000 worth of physical silver and
it is heavy as hell. I think there's about 160 ounces here. So about 10 pounds. I wouldn't want to be
carrying this on an airplane to go to Europe or some
other country right now. But it was interesting
because that value investing newsletter got me hooked on what's called stacking in the gold and silver world. And stacking is exactly
what it sounds like.
It's taking physical gold and silver and collecting as much as you can of it over a certain amount of years, and basically creating a
hedge against inflation and currency devaluation as a
result of having physical metal. And this is something
that is just absolutely unnecessary as far as I'm concerned. It's something that I did for a while. It was fun, but there are far better ways for me to invest in silver and gold.
And that is by using my BMO Investorline or my Questrade account in
order to purchase mining companies, or if I really, really want to, certificates in physical gold and silver. But you know, it was interesting because this investment was
definitely an investment I learned a lot about because one, you learn how the system works. Obviously, people who are
buying gold are paying less for it than the people
who are selling gold because typically you
have to sell to dealers and they're obviously
getting a better deal from you than you're getting from them.
The other thing I realized
was that there's a lot to know about buying physical gold and silver, and it's really easy to get screwed. And I'll use this bar as
an example because this is the very first bar of
silver that I ever bought. It's a 10 ounce NTR metals bar. I bought it from the exact same company that I bought this bar from, which is a sunshine 10 ounce silver bar. I paid about $2 difference between this bar and this bar. This one I think I paid about $245 for, this one about $247 for,
and again, bought them from the exact same gold and silver shop. And I paid pretty much the same price. And what was interesting
was a few years later when I went to sell this
bar, the NTR bar, back to that same golden silver
shop, they basically told me that it was worth 15% less than this one.
So in today's terms, this
bar is worth about $330. This one is worth $280. So there's about a 15% or a $50 difference between these two bars even though they're supposed to be
exactly the same thing. And what I found out was
that the gold and metal shop that I bought this bar from
they knew what this was. They knew it was worth less,
but because I was in there asking questions, trying to
learn, trying to get educated by people who I thought were
experts that were on my side, well, they basically took advantage of me.
And they had these two bars
sitting beside each other, and instead of picking up this
one, they picked up this one, handed it to me and
charged me significantly more than what it was worth. And what I realized was
that when you're dealing in gold and silver, the
margins are so freaking thin that the companies that
do business in this realm are basically incentivized
to screw you if they can. And I've heard lots of stories now of people buying fake
gold and silver thinking that what they were getting was real and ultimately getting stuff
that absolutely was not. So this is definitely a situation
where it's buyer beware.
Now as an alternative, I
could have bought the exact same amount of silver
that I own right here. I could have bought it in
my BMO Investorline account in a certificate, or I
could have been an ETF and I could have been a 100% certain that the silver I was buying
was real because an expert on the other side was
taking care of making sure that it was real and that
I wasn't gonna lose 15% of my investment just
because I was an idiot. The other thing that I
realized about this product was I have to physically
store this in a bank safety deposit box, or
I have to take the risk of storing it at home,
having extra insurance and risking having a fire
or it getting stolen. And that all sucks. And that all adds to the cost
of owning this investment.
And at the end of the day,
there was a whole bunch of reasons why they suggested
physical silver or gold. First was that it was cool. The second was that if you
ever needed to leave a country and go to a different country
with it, you could basically hide it and smuggle it
into another country. Again, I don't endorse that,
but that was a big reason. And in 2020, that reason is nowhere close to as valid as it was in
2014 because in today's day and age, if I wanted to
go to a different country and take over $10,000 with
me, which is the amount that you legally have to declare, by the way, I don't suggest doing that, but let's say it was 1945
Nazi, Germany, and I needed to get out of the country
with a bunch of money, well, I'm not doing it with a
bunch of gold coins anymore.
I'm probably taking a USB
drive that has Bitcoin or some other cryptocurrency on it. So, you know, all the reasons
for holding this stuff basically don't make any sense. And the only reason that
somebody really becomes a stacker in today's day and age, in my opinion, is if they are conspiracy
theorists, if they think that this is better than
cash or better than holding an investment in a online
investment portfolio. And therefore, you know, they think that the world one day will come to an end and this is what's going
to be able to save them. And you know what? I don't think that this is
what's going to save somebody from basically not having any money or having any sort of
ability to buy things if the economy goes to, you
know, hell in a hand basket.
So, you know, this was a fun investment for basically seven years. It was an interesting
investment for seven years. It's one that I definitely
wouldn't make again. All of this stuff, all this
gold and silver is going to be gone by the time
that you watch this video except for this bar, this NTR bar. I might keep this just as
a reminder to myself of why you shouldn't invest in things
that you don't understand. And, you know, for the most part, my time with this was nice. It's cool. It's nice to show to people. It was nice to cut out single
bars and give them to families when they have their
first child and just say, hey, here you go, this is
a little present from me. But this stuff, it's all got to go. Now, in comparison to this you'll also see that there's another
pile of stuff over here. This is all things that my grandparents and my parents collected.
This all has sentimental value. This isn't going anywhere. That's going straight back
in the safety deposit box because this sort of thing is really cool. And where I would spend a little bit of money going forward in coins and precious metals is in
things that got discontinued. So things like old Canadian
money, $20 bills, $10 bills, things like pennies, things like nickels when they eventually stop making those. I think they're all cool investments. And it's cool to have things
that have sentimental value. Things like this. This is four three pence coins
that were given to my mum, when no, sorry, they were given to my grandmother when my mum was born. One of these goes back to 1916. There's a whole bunch of silver dollars that my grandfather collected. There's a whole bunch of
Montreal silver coins. You know real nickel
nickels and series of coins. Like these are all wrapped up. I've never opened them. I don't even know what
they are but they appear to be some sort of a
Canadian series of coins. Like penny, nickel,
quarter, all that stuff.
So things like this that
have sentimental value, coins, stuff like that, I don't think anything like this should ever be sold. There's probably just as much value if not more value here
as there is in this pile but this sort of thing,
gold bar, silver bars, this is an unnecessary investment. It's like I said, one of
the stupidest investments I've ever made and one that
I'm glad to be divesting myself of, and ultimately I get
a little bit of return from. So, if you found this video
interesting, if you found my story about my stupidest
investment I ever made interesting, do me that favor,
hit that subscribe button, hit that notification bell,
please hit that like button so more people like you can see this video and we'll see you on the very next one. Cheers..
Noble Gold Investments IRA Reviews| Worth the Fees? #goldinvestmentreviews
Jason 0 Comments Retire Wealthy Retirement Planning
Noble gold Investments Ira reviews worth the fees I strongly believe that there is a perfect fit for every type of investor not only that but Noble gold is among the best and unique among precious metals Ira companies you can invest in with just five thousand dollars and in today's Noble gold review I'll share with you everything I've learned in my personal interactions with them so you can make an educated decision before you potentially invest not only do I have a personal relationship with Noble gold Investments which I'll share here but if you dive into other Noble gold reviews like I did you'll learn that their education process helps people understand the basics of investing in gold silver platinum and Palladium Investments Noble gold offers five minute individual retirement portfolio gold and silver retirement account transfers and gold Ira rollovers still unsure about whether to choose Noble gold Investments or not continue reading my Noble gold Ira review to find out the exact reasons why I feel this is a top-ranked precious metals company who owns Noble gold is Noble gold legit Noble gold reviews are incredible pros and cons why choose Noble gold Investments precious metals Ira approved one gold coins and bars two silver Ira coins and bars three Platinum coins and bars four Palladium coins and bars frequently asked questions about Noble gold the primary founders of noble gold are Charles thorngren and Colin plume in a world where anyone can speak up loudly about a bad experience that says a lot about the service and customer care provided by Noble gold Investments under the guidance of noble gold you can protect your retirement by Investing in Gold and Silver Platinum and Palladium and other precious metals Ira approved the Canadian gold Maple Leaf coins are known to have a purity of about 99.999999 this proofs coin is one of the two American Gold Eagle coins versions when it comes to Purity only a few coins are present in the world that can beat Canadian gold Maple Leaf coins the Canadian gold Maple Leaf coins are known to have a purity of about 99.99999 Noble gold offers popular silver coins investment among coin collectors which are given below these are America's official silver bullion coins which increases their worth in Precious Metals investment the popularity of these coins explains well that these coins are Ira approved for investing the dominations of these coins include one tenth of an ounce one quarter of an ounce half an ounce and one ounce it was first issued by Royal Canadian Mint in 1988 and is known as Canada's official Platinum bullion coin it contains bullion coins of gold and silver that can easily be liquidated in case of a stock market crash because the survival pack is eligible for home delivery of physical precious metals as discussed earlier the unique and Flawless Noble Gold's customer service has acquired almost five star reviews if you want to try your luck in Precious Metals investment you can get a consultation from Noble gold Ira there are various ways to invest in gold or other metals Noble gold is the top precious metals company that will help you throughout the process if not you can also consider investing in gold jewelry
Why You Shouldn’t Buy Physical Gold And Silver
Jason 0 Comments Retire Wealthy Retirement Planning
– And what I found out was
that the gold and metal shop that I bought this bar from,
they knew what this was. They knew it was worth less,
but because I was in there asking questions, trying to
learn, trying to get educated by people who I thought were
experts that were on my side, well, they basically took advantage of me. Hey, welcome back, it's Nolan Matthias. And today I'm going to tell
you about the stupidest and probably the coolest
investment I ever made. But before we get into
it, do me that favor, hit that subscribe button,
hit that notification button and please hit that like button so more people like you can see this video. Okay, so let's get into it. What is the stupidest
investment that I've ever made? And quite frankly, also the
coolest investment I ever made. Well, it's this. It's buying physical gold and silver. This is honestly one
of the coolest things, being able to sit here and hold basically in this pile alone,
$5,000 worth of silver, and having a little bit of
gold kicking around as well.
This is really cool. And this is an investment that
started for me back in 2014 as silver prices were starting
to come down as the fear from the financial crisis
was coming out of the market and as there was starting to become more and more deals on buying
physical silver and gold. And this was nothing that I ever expected that I would invest in myself,
but it came about as a result of an investment newsletter
that I was subscribed to that was all based around value investing. And value investing is the type of investing that Warren Buffet does. So finding companies that are worth a lot that are undervalued
and investing in those. And that investment strategy
is where the similarities to Warren Buffet ended
because they also got into the piece about
having precious metals as a hedge against inflation
and currency devaluation and also holding it physically rather than in certificates or in ETFs, so that if anything ever
happened in a country that you lived in and
you wanted to bug out to a different country,
much like the Jewish people had to do in Nazi Germany
during the World War II, well, physical gold and silver was
the best means of doing that.
Now physical gold may
have been a good means of being able to transport
money over borders, which by the way, I'm not recommending, but physical silver certainly isn't. You know, this is about $5,000 worth of physical silver and
it is heavy as hell. I think there's about 160 ounces here. So about 10 pounds. I wouldn't want to be
carrying this on an airplane to go to Europe or some
other country right now. But it was interesting
because that value investing newsletter got me hooked on what's called stacking in the gold and silver world. And stacking is exactly
what it sounds like. It's taking physical gold and silver and collecting as much as you can of it over a certain amount of years, and basically creating a
hedge against inflation and currency devaluation as a
result of having physical metal. And this is something
that is just absolutely unnecessary as far as I'm concerned. It's something that I did for a while. It was fun, but there are far better ways for me to invest in silver and gold.
And that is by using my BMO Investorline or my Questrade account in
order to purchase mining companies, or if I really, really want to, certificates in physical gold and silver. But you know, it was interesting because this investment was
definitely an investment I learned a lot about because one, you learn how the system works. Obviously, people who are
buying gold are paying less for it than the people
who are selling gold because typically you
have to sell to dealers and they're obviously
getting a better deal from you than you're getting from them. The other thing I realized
was that there's a lot to know about buying physical gold and silver, and it's really easy to get screwed. And I'll use this bar as
an example because this is the very first bar of
silver that I ever bought.
It's a 10 ounce NTR metals bar. I bought it from the exact same company that I bought this bar from, which is a sunshine 10 ounce silver bar. I paid about $2 difference between this bar and this bar. This one I think I paid about $245 for, this one about $247 for,
and again, bought them from the exact same gold and silver shop. And I paid pretty much the same price. And what was interesting
was a few years later when I went to sell this
bar, the NTR bar, back to that same golden silver
shop, they basically told me that it was worth 15% less than this one. So in today's terms, this
bar is worth about $330. This one is worth $280. So there's about a 15% or a $50 difference between these two bars even though they're supposed to be
exactly the same thing. And what I found out was
that the gold and metal shop that I bought this bar from
they knew what this was.
They knew it was worth less,
but because I was in there asking questions, trying to
learn, trying to get educated by people who I thought were
experts that were on my side, well, they basically took advantage of me. And they had these two bars
sitting beside each other, and instead of picking up this
one, they picked up this one, handed it to me and
charged me significantly more than what it was worth. And what I realized was
that when you're dealing in gold and silver, the
margins are so freaking thin that the companies that
do business in this realm are basically incentivized
to screw you if they can.
And I've heard lots of stories now of people buying fake
gold and silver thinking that what they were getting was real and ultimately getting stuff
that absolutely was not. So this is definitely a situation
where it's buyer beware. Now as an alternative, I
could have bought the exact same amount of silver
that I own right here. I could have bought it in
my BMO Investorline account in a certificate, or I
could have been an ETF and I could have been a 100% certain that the silver I was buying
was real because an expert on the other side was
taking care of making sure that it was real and that
I wasn't gonna lose 15% of my investment just
because I was an idiot. The other thing that I
realized about this product was I have to physically
store this in a bank safety deposit box, or
I have to take the risk of storing it at home,
having extra insurance and risking having a fire
or it getting stolen.
And that all sucks. And that all adds to the cost
of owning this investment. And at the end of the day,
there was a whole bunch of reasons why they suggested
physical silver or gold. First was that it was cool. The second was that if you
ever needed to leave a country and go to a different country
with it, you could basically hide it and smuggle it
into another country. Again, I don't endorse that,
but that was a big reason. And in 2020, that reason is nowhere close to as valid as it was in
2014 because in today's day and age, if I wanted to
go to a different country and take over $10,000 with
me, which is the amount that you legally have to declare, by the way, I don't suggest doing that, but let's say it was 1945
Nazi, Germany, and I needed to get out of the country
with a bunch of money, well, I'm not doing it with a
bunch of gold coins anymore.
I'm probably taking a USB
drive that has Bitcoin or some other cryptocurrency on it. So, you know, all the reasons
for holding this stuff basically don't make any sense. And the only reason that
somebody really becomes a stacker in today's day and age, in my opinion, is if they are conspiracy
theorists, if they think that this is better than
cash or better than holding an investment in a online
investment portfolio. And therefore, you know, they think that the world one day will come to an end and this is what's going
to be able to save them. And you know what? I don't think that this is
what's going to save somebody from basically not having any money or having any sort of
ability to buy things if the economy goes to, you
know, hell in a hand basket.
So, you know, this was a fun investment for basically seven years. It was an interesting
investment for seven years. It's one that I definitely
wouldn't make again. All of this stuff, all this
gold and silver is going to be gone by the time
that you watch this video except for this bar, this NTR bar. I might keep this just as
a reminder to myself of why you shouldn't invest in things
that you don't understand. And, you know, for the most part, my time with this was nice. It's cool. It's nice to show to people. It was nice to cut out single
bars and give them to families when they have their
first child and just say, hey, here you go, this is
a little present from me. But this stuff, it's all got to go. Now, in comparison to this you'll also see that there's another
pile of stuff over here. This is all things that my grandparents and my parents collected.
This all has sentimental value. This isn't going anywhere. That's going straight back
in the safety deposit box because this sort of thing is really cool. And where I would spend a little bit of money going forward in coins and precious metals is in
things that got discontinued. So things like old Canadian
money, $20 bills, $10 bills, things like pennies, things like nickels when they eventually stop making those. I think they're all cool investments. And it's cool to have things
that have sentimental value. Things like this. This is four three pence coins
that were given to my mum, when no, sorry, they were given to my grandmother when my mum was born.
One of these goes back to 1916. There's a whole bunch of silver dollars that my grandfather collected. There's a whole bunch of
Montreal silver coins. You know real nickel
nickels and series of coins. Like these are all wrapped up. I've never opened them. I don't even know what
they are but they appear to be some sort of a
Canadian series of coins. Like penny, nickel,
quarter, all that stuff. So things like this that
have sentimental value, coins, stuff like that, I don't think anything like this should ever be sold. There's probably just as much value if not more value here
as there is in this pile but this sort of thing,
gold bar, silver bars, this is an unnecessary investment.
It's like I said, one of
the stupidest investments I've ever made and one that
I'm glad to be divesting myself of, and ultimately I get
a little bit of return from. So, if you found this video
interesting, if you found my story about my stupidest
investment I ever made interesting, do me that favor,
hit that subscribe button, hit that notification bell,
please hit that like button so more people like you can see this video and we'll see you on the very next one. Cheers..
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